The International Cricket Council (ICC) has faced an unforeseen broadcasting dilemma just two months before the next T20 World Cup 2026, after JioStar formally informed the authority that it will be unable to satisfy the remaining two years of its four-year India media rights agreement.
The broadcaster cited rising financial losses as the key reason for seeking an early exit from the $3 billion arrangement.
The situation has compelled the decision-makers at the ICC to think on their feet and initiate a fresh bidding process for the 2026-29 cycle, seeking approximately $2.4 billion from potential buyers.
It is intriguing to note that 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 strain was exacerbated in the aftermath of India’s ban on real-money gaming earlier this year, which ruled out the single largest advertiser.
JioStar inherited the ICC rights from Disney’s Star India before its merger with Viacom18.
Many 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.
The timing of this fallout isn’t great for ICC as it plans to host the upcoming edition of the T20 World Cup, set to run from February 7 to March 8. Matches in the marquee event are set to be hosted in India and Sri Lanka.
India contributes about 80% of ICC revenue, highlighting cricket’s dependence on a single market. However, the merger of Star India and Viacom18 into JioStar has formed a broadcasting duopoly, leaving only JioStar and Sony as prime contenders and diminishing options for rights holders.
Even if the ICC cannot strike a deal with a new broadcaster, JioStar remains contractually obligated to fulfil the agreement through 2027. The ICC posted a $474 million surplus in 2024, accentuating cricket’s strong economics in spite of 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.
Fans are waiting to witness the T20 World Cup with bated breath. India are entering the tournament as defending champions. Meanwhile, Rohit Sharma was recently named the official Brand Ambassador for the event. Suryakumar Yadav will lead the Men in Blue in the 20-team event. Australia, England, and South Africa are some of the other teams that could go the distance.
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