Cricket Media Rights Bubble Bursts: JioStar Seeks Early Exit from $3 Billion ICC Deal Amid Unprecedented $3.1 Billion Loss Provision

JioStar (the merged entity of Disney Star India and Viacom18/Reliance) has formally notified the International Cricket Council (ICC) of its intent to prematurely terminate its India media rights deal for the 2024–2027 cycle, a contract originally valued at nearly $3 billion. The move signals a major and long-anticipated market correction in the cost of non-IPL cricket properties in India, which accounts for nearly 80% of the ICC’s global revenue.

The Financial Strain

The primary driver for the exit is the catastrophic divergence between the high cost of the media rights and the challenging monetization landscape in India.

• Massive Loss Provision: Audited standalone accounts for JioStar show that provisions for anticipated losses on sports-content deals have more than doubled year-on-year, rocketing from ₹12,319 crore in FY24 to ₹25,760 crore (approximately $3.1 billion) in FY25. This provision effectively classifies the ICC contract as an “onerous contract,” where expected cash outflows exceed expected cash inflows, rendering the deal commercially unsustainable at its current valuation.
• Ad Revenue Black Hole: The crisis was triggered by the recent regulatory ban on real-money gaming (RMG) and fantasy platforms. This category was the single largest advertiser in cricket, and its removal has left an estimated ₹7,000 crore (approx. $840 million) revenue gap that other sectors have been unable to fill.
• Currency Pressure: The contract is dollar-denominated, and the US dollar rising above ₹90 has further exacerbated the burden, effectively increasing JioStar’s total obligation to an estimated $3.3 billion from the original $3 billion.

ICC’s Dilemma and Market Resistance

With the ICC Men’s T20 World Cup 2026 rapidly approaching in February, the ICC is scrambling to secure a replacement.

• High Asking Price: The ICC has initiated a fresh sale process for the subsequent rights cycle (2026–2029) and is reportedly seeking around $2.4 billion.
• Lack of Buyer Interest: The ICC has approached major industry players, including Sony Pictures Networks India (SPNI), Amazon Prime Video, and Netflix. However, interest has been notably lukewarm. Industry sources indicate that the ICC’s $2.4 billion valuation is still considered too high given the current advertising slowdown and the low average revenue per user (ARPU) in India’s price-sensitive streaming market.
• Valuation Gap: JioStar is reportedly seeking a renegotiated value of $2.0–2.1 billion for the next cycle, highlighting a substantial $300-$400 million gap with the ICC’s target price.

Broader Economic Implications

This high-profile exit is viewed by analysts as the clearest evidence yet that the era of aggressive, loss-making bids for major cricket properties is ending.

“The decision of JioStar to seek retendering marks a brutal reality check. The $3 billion price tag might have made strategic sense on paper at the time of bidding, but with advertising down and subscription revenues stagnant, the economics simply do not add up any more.”

— Seasoned Industry Analyst

• Consolidation Effect: The merger that created JioStar has reduced competition, removing the “bidding frenzy” that drove prices to unsustainable levels in the 2022 auctions.
• Future of IPL: Experts suggest that even the world’s most valuable cricket property, the Indian Premier League (IPL), may not be immune to this correction in its next cycle, with some analysts predicting a potential moderation in its valuation and a scrutiny of franchisee valuations.

The ICC now faces a complex choice between legally forcing JioStar to honor the remainder of the contract through 2027 or accepting a reduced fee from a new partner to ensure broadcast certainty for its flagship events.