The Indian cricket board, BCCI has been heavily fined for terminating ZEE’s five year broadcast rights contract in 2007.
The three-member Arbitral Tribunal concluded that ZEE was treated unfairly in its commercial contracts, due to the launch of the Indian Cricket League and was illegally blacklisted.
The termination of the agreement by BCCI after the series held in Abu Dhabi and the tri-series held in Malaysia was termed by the Tribunal as clearly illegal and invalid.
According to reports, the board must fork out Rs 1.4 billion to ZEE, which includes the security deposit of Rs 300 million with interest at 11 per annum from 31st May, 2007, loss of profit and goodwill. The Tribunal also observed that the BCCI blacklisting of ZEE from participating in any bidding process of BCCI was clearly illegal.
Zeel MD Punit Goenka commented, ZEE welcomes the Award handed over to it by an eminent panel of jurists. This award is towards recovery of the losses that we have incurred in the sports business in the past. We continue to remain committed to our sports business in the long term.