ECB Privatizes Hundred, Aims for World's Second-Biggest Franchise League

The England and Wales Cricket Board (ECB) is embarking on a bold initiative to privatize the Hundred, its flagship franchise league, with the aim of elevating it to the status of the world's second-largest after the Indian Premier League (IPL). The board has appointed financial advisors and legal counsel to facilitate the sale process, which is targeted for completion by the end of 2023.

The counties have expressed their support for the ECB's proposed "direction of travel," recognizing the potential financial benefits of selling stakes in the eight Hundred teams to private investors. The ECB currently owns all the teams, but the sale is expected to attract interest from IPL owners and private equity firms.

The proceeds from the sale will be distributed in a structured manner. Initially, the ECB will transfer 51% of the shares in each team to the host counties, who will then decide whether to retain all, some, or none of their stakes. The ECB will then sell its remaining 49% stake, with 10% allocated to the recreational game in England and Wales.

The remaining proceeds will be shared among the counties, with the first £275 million distributed equally among all 19 first-class counties and MCC. The next £150 million will be shared among the 11 non-host counties, and any proceeds exceeding £425 million will be distributed equally among all 19 counties.

Vikram Banerjee, the ECB's director of business operations, emphasized the transformative potential of the privatization move. "We have identified this moment as the opportunity to take the Hundred to the next level while capitalizing on the global interest in the competition to underpin the structure of the whole domestic game," he said.

The ECB believes that the Hundred will play a crucial role in the future of cricket in England and Wales. The board is seeking strategic partners with the expertise to elevate the competition and ensure that the benefits extend to all levels of the sport.

The Raine Group, which has advised on recent sales processes at Chelsea and Manchester United, will lead the search for investors and negotiate the terms of investment. Deloitte will provide strategic advice, while Latham & Watkins and Onside Law will serve as legal co-counsel.

The Hundred will run from July 23 to August 18 this year, and the ECB hopes to showcase the competition's potential to prospective investors. However, the first six days of the season will overlap with Major League Cricket, which could impact the availability of overseas players.

Tags: #ECB, #Hundred, #Privatization, #IPL, #Cricket