ICC rocked as JioStar backs out of billion-dollar media rights deal
Just months before the 2026 T20 World Cup in India and Sri Lanka, the International Cricket Council (ICC) is facing a major financial and operational challenge. JioStar, the Reliance Industries-controlled broadcaster, has formally notified the ICC of its intent to exit its four-year India media rights contract, originally valued at US$3 billion, citing unsustainable financial losses — a move that could unravel the ICC’s media and commercial strategy for the region.
According to a report by Economic Times, JioStar’s decision to walk away from the deal — which was originally valued at ₹25,760 crore (approx. US$2.9 billion) for the 2024–27 cycle — has triggered a scramble within the ICC to re-sell the rights for the 2026–29 cycle. The global body is now seeking US$2.4 billion for the next package, but so far, no major broadcaster has shown serious interest.
ICC reaches out to global and local players, but pricing deters buyers
In a bid to fill the gap left by JioStar, the ICC has reportedly approached Sony Pictures Networks India (SPNI), Netflix, and Amazon Prime Video. However, none of the platforms have committed, largely due to the high valuation of the rights, according to sources familiar with the discussions.
SPNI, despite holding high-profile cricket properties such as the Asian Cricket Council package (valued at US$170 million), New Zealand Cricket (US$100 million), and the England and Wales Cricket Board (over US$200 million), has taken a cautious approach. Earlier this year, it was even compelled to sub-license the digital rights for the India–England Test series to JioStar to minimize financial exposure.
Meanwhile, Netflix remains on the sidelines of live cricket in India, only testing the waters with sports-entertainment properties like WWE. Amazon Prime Video has limited involvement as well, with its New Zealand Cricket deal in India set to end soon and its ICC rights restricted to Australia until 2027.
JioStar’s rising losses reflect deeper strain on India’s sports media landscape
The financial strain on JioStar has been mounting steadily. The company more than doubled its provision for losses on sports rights in FY2024–25, from ₹12,319 crore (approx. US$1.4 billion) to ₹25,760 crore (approx. US$2.9 billion), according to its audited standalone financials. These losses reflect the widening gap between long-term media rights costs and revenue recovery, especially in a climate where linear TV faces declining ad revenue and streaming remains largely unprofitable.
Before its merger with Viacom18, Star India — which originally won the ICC rights — reported a net loss of ₹12,548 crore (approx. US$1.4 billion), largely due to the ICC deal. The merger shifted the full burden of the contract to the new JioStar entity, which has struggled to make the economics work.
Compounding JioStar’s woes was the Indian government’s ban on real-money gaming platforms, which had emerged as the single largest advertiser in cricket. Platforms like Dream11 and My11Circle exited the advertising market, creating an estimated ₹7,560 crore (approx. US$840 million) revenue vacuum that traditional advertisers have yet to fill.
A volatile media market and collapsing valuations put ICC in tight spot
The ICC’s financial health, in contrast, appears solid — the global body recorded a US$474 million surplus in 2024. But its heavy dependence on the Indian market, which accounts for nearly 80% of its revenue, has left it vulnerable to disruptions like JioStar’s exit.
The situation is further complicated by the broader correction in India’s sports media ecosystem. Rising costs and uncertain monetisation models have led broadcasters to pull back. Globally, streaming giants are spending more on live sports, but selectively — targeting leagues like the NFL and NBA that offer more reliable returns, rather than committing to expensive cricket packages in uncertain markets.
According to industry sources, if the ICC cannot find a replacement broadcaster, JioStar would be contractually obligated to fulfill the current deal through 2027. Still, the ongoing attempt to offload the rights suggests the ICC is exploring every option.
Past overvaluation and failed partnerships haunt JioStar
The genesis of the current crisis can be traced back to the original auction in 2022, where Star India — later merged into Viacom18 — bid around US$3 billion to retain the India rights. At the time, SPNI had submitted a more modest US$1.4 billion bid, and Viacom18 had reportedly offered just US$1 billion. Many executives viewed the final price tag as well above market benchmarks.
The fallout was compounded when Zee Entertainment withdrew from a separate deal to acquire the ICC TV rights for around US$1.5 billion, following the collapse of its proposed merger with SPNI. JioStar is now seeking damages of nearly US$1 billion through arbitration against Zee at the London International Arbitration Centre.
Currency fluctuations have worsened the situation, as ICC’s rights payments are dollar-denominated. With the US dollar now trading above ₹90, JioStar’s effective obligation has surged to about US$3.3 billion — significantly above the original bid.
What lies ahead for ICC media rights
Data from Ampere Analysis projects global sports rights spending to exceed US$78 billion by 2030, up nearly 20% from 2025. In Asia, spending is expected to grow from US$7.2 billion to US$9.9 billion over the same period, with Indian cricket playing a major role.
Even amid this bullish long-term outlook, the ICC faces short-term uncertainty. With broadcaster interest cooling and market economics shifting, the governing body must recalibrate its expectations — or risk going into a marquee event without a confirmed media partner in its most lucrative market.
The countdown to the 2026 T20 World Cup is underway, but the ICC’s media rights future remains deeply unsettled.
