- ECB considers advice from firms for Hundred franchises’ sale
- Private investors sought for The Hundred’s eight cricket teams
- ECB anticipates £100 million revenue, potential IPL interest
The England and Wales Cricket Board is considering the advice of firms such as Raine and Rothschild regarding its intentions to sell interests in The Hundred’s franchises.
English cricket executives will advance the sport’s ownership structure overhaul by another level next week by announcing plans to sell stakes in The Hundred’s eight franchises.
The England and Wales Cricket Board (ECB) will interview financiers in the coming days as it prepares to recruit private investors into teams such as the Welsh Fire and Northern Superchargers to raise capital.
Saturday, sources informed us that Goldman Sachs, Raine, and Rothschild were competing for the opportunity to advise the ECB on the auction procedure.
Under the governing body’s proposal, each host venue would own 51% of its individual franchise; the ECB would sell the remainder, in whole or in part, to private investors.
The process has the potential to generate £100 million in revenue, which is expected to be divided among the 18 counties, many of which are experiencing financial difficulties, and recreational cricket.
It is anticipated that several Indian Premier League (IPL) team sponsors and other globally renowned sports investors will demonstrate an interest in Hundred franchises.
The ECB could pursue a centralized auction of the franchise interests to operationalize the new structure before the 2025 tournament.
Strong sporting pedigrees distinguish both Raine, which advised Sir Jim Ratcliffe’s Ineos Sports on the recent sale of a stake in Manchester United Football Club, and Rothschild, which is negotiating agreements with Brentford, Tottenham Hotspur, and West Ham United.
According to sources, the ECB reportedly anticipated ratifying the adviser’s appointment in May.
ECB chief executive Richard Gould stated this week, “There is broad agreement that we would like to see private investment enter the Hundred.”
There is broad agreement that this should be accomplished through investment in the teams instead of the central competition; at this time, we are examining the possibilities regarding the distribution of capital, revenue, and control.
During his tenure at Surrey, Mr. Gould, a former chief executive of Bristol City Football Club, was an outspoken critic of The Hundred.
The banking proposal arrives approximately 18 months after Bridgepoint Group, a London-listed buyout firm, extended an offer to English cricket to acquire a controlling stake in the Hundred.
A transaction in which Bridgepoint proposed to acquire a 75% stake in the format could have infused English cricket with an additional £300 million.
In contrast, the ECB was averse to relinquishing control of The Hundred and considered Bridgepoint’s offer significantly undervalued.
However, its most recent plan is also generating discontent, as several countries not included in The Hundred are not pleased with the suggestions.
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The Oval Invincibles won the men’s Hundred final from the previous year, whereas Southern Brave won the women’s competition.
On the weekend of July 23, the defending champions of the men’s and women’s divisions will face Birmingham Phoenix and London Spirit, respectively, to begin this year’s tournament.
The Hundred has effectively stimulated renewed public interest in cricket, specifically among the younger and female demographics, during a declining interest in other formats of the sport.
The county game’s finances have been dismal for many years, and many are sceptical of the long-term viability of 50-over cricket.
Due to the repercussions of its racism scandal, Yorkshire County Cricket Club has come perilously close to insolvency in recent months, whereas several others are examining the possibility of engaging in discussions with new investors.
This past weekend, an ECB spokesperson declined to comment, and no bank responded to a request for comment or could be reached.
