JioStar seeks exit from $3B ICC media deal ahead of T20 World Cup
The International Cricket Council faces an unprecedented broadcasting crisis just two months before the T20 World Cup 2026, after JioStar formally notified the governing body that it cannot fulfil the remaining two years of its four-year India media rights agreement. The broadcaster cited mounting financial losses as the primary reason for seeking an early exit from the $3 billion deal.
The development has forced the ICC to initiate a fresh bidding process for the 2026-29 cycle, seeking approximately $2.4 billion from potential buyers. According to reports by The Economic Times, the ICC has approached Sony Pictures Networks India, Netflix, and Amazon Prime Video to take over the rights, but none have shown interest due to pricing concerns.
Financial Strain and Market Collapse
JioStar more than doubled its provisions for expected losses on sports contracts in 2024-25 to ₹25,760 crore, up from ₹12,319 crore the previous year. The company's financial burden intensified following India's ban on real-money gaming earlier this year, which eliminated the single largest advertiser for cricket. Industry executives estimate the ban created a $840 million gap that traditional brands have been unable to fill.
JioStar inherited the ICC rights from Disney's Star India before its merger with Viacom18. Several senior executives regarded the $3 billion valuation as disconnected from market benchmarks—Sony had bid approximately $1.4 billion for combined TV and digital rights, while Viacom18 bid around $1 billion. Rising dollar rates added pressure, with JioStar's effective burden climbing to about $3.3 billion as the dollar crossed ₹90.
Uncertain Future for Cricket Fans
The timing compounds the ICC's challenge, with the T20 World Cup 2026 set to begin February 7 in India and Sri Lanka. India contributes nearly 80% of ICC revenue, underscoring cricket's dependence on a single market. However, the merger of Star India and Viacom18 into JioStar has created a broadcasting duopoly, leaving only JioStar and Sony as serious contenders and narrowing options for rights holders.
Even if the ICC cannot secure a new broadcaster, JioStar remains contractually obligated to fulfil the agreement through 2027. The ICC posted a $474 million surplus in 2024, highlighting cricket's strong economics despite JioStar's losses. The current sales process underscores a broader correction in sports media, with the International Olympic Committee and FIFA also struggling to command expected valuations in India.