In a dramatic development that threatens to reshape India's cricket broadcasting landscape, Reliance Industries-controlled JioStar has formally notified the International Cricket Council (ICC) that it cannot service the remaining two years of its four-year India media-rights deal due to deep financial losses, according to a report by Economic Times.
The media conglomerate has more than doubled its provisions for expected losses on sports contracts to a staggering ₹25,760 crore in 2024-25, up from ₹12,319 crore the previous year - a clear signal that the economics of cricket broadcasting in India have fundamentally broken down.
The ICC has scrambled into emergency mode, launching a fresh sale process for India media rights for 2026-29 and seeking approximately $2.4 billion. The original 2024-27 cycle was valued at $3 billion.
However, early indications suggest the market has evaporated. The ICC has approached Sony Pictures Networks India (SPNI), Netflix, and Amazon Prime Video to take over the rights. So far, none of the platforms has shown substantive interest because of pricing concerns, leaving the ICC without a clear path forward.
This represents an unprecedented collapse in what has traditionally been the world's most lucrative cricket market.
JioStar inherited not just the ICC deal but also paid over $6 billion (₹48,390+ crore) for IPL digital and TV rights for 2023-2027. If they're hemorrhaging money on the $3 billion ICC contract, the IPL deal—which cost twice as much—must be under catastrophic financial strain.
It reveals that "JioStar inherited the $3 billion ICC India rights from Disney's Star India, which later merged with Viacom18. Together, Star and Viacom18 had committed more than $10 billion to cricket, making India the world's most expensive market for the sport."
This ₹80,000+ crore cricket bet is now unraveling spectacularly.
The critical vulnerability: "JioStar's strain has intensified after the ban on real-money gaming, which had become the single largest advertiser for cricket. Industry executives said that although traditional brands have returned, no segment can fill the roughly $840 million (₹7,000 crore) gap left by real-money gaming and fantasy platforms like Dream11 and My11Circle."
This isn't just an ICC problem—the IPL relied on the same gaming platforms. Dream11 was a title sponsor and primary advertiser. That revenue fountain has been permanently shut off, and traditional advertisers cannot fill the void.
The ET article reveals the extent of overpayment: "From the outset, several senior executives regarded the $3 billion ICC rights valuation as anomalous and materially disconnected from prevailing market benchmarks. SPNI had bid about $1.4 billion for the combined TV and digital rights, while Viacom18 was understood to have bid around $1 billion."
Star/JioStar paid more than double what competitors thought the rights were worth. If ICC rights were overvalued by 100-150%, what does that say about IPL rights that cost twice as much?
"The merger of Star India and Viacom18 into JioStar has created a virtual duopoly in sports broadcasting, leaving only JioStar and SPNI as serious contenders and narrowing options for rights holders such as the ICC."
This is devastating for IPL's next auction (post-2027). In a healthy market, competition drives prices up. Now there are only two bidders:
Netflix and Amazon have explicitly stayed away. When IPL rights come up for renewal after 2027, who will bid?
What industry insiders feared: "Monetisation of bilateral and multilateral cricket remains limited amid subdued advertising demand and continued pressure on linear TV profitability from a shrinking pay base and weak ad volumes and pricing. With linear profits under strain and streaming still loss-making, broadcasters are reluctant to take on large sports commitments in the future."
Both traditional TV and streaming are losing money. There's no profitable business model left for expensive cricket rights.
"Rising dollar rates and rupee depreciation have added to the pressure because ICC payments are dollar denominated. Executives said JioStar's effective burden has already risen to about $3.3 billion as the dollar has crossed ₹90."
If the rupee continues weakening, any dollar-denominated sports rights become increasingly expensive. This adds a 10% premium to already unprofitable deals.
"JioStar's burden increased further after Zee Entertainment backed out of its commitment to take the ICC TV rights for roughly $1.5 billion when the proposed Zee-SPNI merger collapsed. This prompted JioStar to initiate arbitration against Zee at the London International Arbitration Centre, with damages claimed at close to $1 billion."
Even when JioStar tried to offload part of the burden, it failed. They're now stuck in billion-dollar litigation, further draining resources.
Your franchise valuations are based on perpetually increasing media rights. If the next IPL rights deal (post-2027) comes in significantly lower than ₹48,390 crore, team valuations could collapse by 30-50%.
Mega-auctions and inflated player salaries are funded by media rights revenue. A correction in broadcast deals means smaller salary caps and reduced player earnings.
The board has built budgets and development programs around ever-increasing IPL revenues. A 30-40% reduction in the next rights cycle would force major cutbacks.
Private equity firms have poured billions into buying IPL teams at sky-high valuations. This news represents a massive markdown risk for those investments.
"That said, cricket continues to function as one of the few proven mass-scale audience drivers in India, making it a strategic asset that broadcasters and streamers are reluctant to forgo despite escalating costs."
Cricket still delivers audiences. The question is: at what price can it be profitable? And that price appears to be far below what JioStar paid.
The ICC crisis isn't a separate event—it's the first domino falling in India's cricket media bubble. This confirms that "the current sales process for fresh media rights underscores the correction underway in the sports media landscape."
JioStar's ₹25,760 crore loss provision isn't just about ICC—it encompasses all their onerous sports contracts, including IPL. The company is essentially admitting that their entire cricket portfolio is underwater.
When the IPL rights come up for renewal in 2027, the market dynamics will be:
