The International Cricket Council (ICC) is facing a significant challenge as JioStar, controlled by Reliance Industries, seeks to exit its media rights deal, reportedly due to substantial financial losses. JioStar has communicated its decision to the ICC, signaling its inability to fulfill the remaining two years of its four-year India media rights agreement, which was valued at $3 billion for the 2024-2027 cycle. This development comes ahead of the ICC Men's T20 World Cup 2026, which is scheduled to be co-hosted by India and Sri Lanka in February-March.
The ICC has initiated a fresh sale process for the India media rights for the 2026-29 period, aiming to secure approximately $2.4 billion. To address the potential void left by JioStar, the ICC has reportedly approached Sony Pictures Networks India (SPNI), Netflix, and Amazon Prime Video to explore the possibility of taking over the rights. However, sources indicate that these platforms have not yet expressed significant interest due to concerns regarding pricing.
JioStar's decision to withdraw from the deal stems from increasing financial strain, with provisions for expected losses on sports contracts more than doubling in 2024-25 to ₹25,760 crore (approximately $3.1 billion USD), compared to ₹12,319 crore the previous year. This increase reflects the pressure from long-term sports and content rights that are anticipated to generate less revenue than their execution costs. Furthermore, JioStar's burden was compounded when Zee Entertainment backed out of its commitment to acquire ICC TV rights for around $1.5 billion following the collapse of the proposed Zee-SPNI merger. This prompted JioStar to initiate arbitration against Zee at the London International Arbitration Centre, seeking damages close to $1 billion. Rising dollar rates and rupee depreciation have further exacerbated the financial pressure, as ICC payments are dollar-denominated.
Despite JioStar's intention to exit, the company remains contractually obligated to fulfill the agreement until 2027, even if the ICC fails to find a new broadcaster. This situation underscores a correction in the sports media landscape, where organizations like the International Olympic Committee and FIFA are also encountering difficulties in securing expected valuations in India.
Several factors are contributing to the cautious approach of potential bidders. Traditional brands have returned to the market; however, no segment can fill the gap left by real-money gaming and fantasy platforms. Netflix has primarily focused on premium entertainment programming in India and is in the early stages of experimenting with sports-entertainment properties like WWE. While Amazon Prime Video has limited involvement with cricket in India, it holds ICC rights in Australia until 2027 and has secured exclusive live rights to ICC tournaments in Australia until the end of 2027.
Previously, SPNI had bid approximately $1.4 billion for the combined TV and digital rights, while Viacom18 reportedly bid around $1 billion. For the preceding eight-year cycle ending in 2023, Star had paid nearly $2 billion. JioStar inherited the $3 billion ICC India rights from Disney’s Star India, which later merged with Viacom18. Together, Star and Viacom18 had committed over $10 billion to cricket, establishing India as the most expensive market for the sport.
The ICC is seeking approximately $2.4 billion for the India media rights for 2026-29. It remains to be seen whether the ICC will secure a new media partner at this valuation, or if it will need to re-evaluate its expectations in light of the current market dynamics. The situation highlights the challenges and complexities in the sports broadcasting rights market, particularly in a rapidly evolving digital landscape.
