Cricket

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.

The privatization of the Hundred, England's premier domestic cricket tournament, has taken a significant step forward with the English Cricket Board (ECB) securing broad agreement from the 18 first-class counties and Marylebone Cricket Club (MCC) on its proposed "direction of travel."Over the past nine months, the English cricket community has engaged in extensive discussions regarding the future of the Hundred. ECB chief executive Richard Gould previously indicated a "strong consensus" that the eight teams, currently owned by the board, should be opened up to private investment.To facilitate this, eight new companies will be established, with 51% of the shares gifted to the respective host counties. For instance, Surrey would hold the majority of shares in the Oval Invincibles. The remaining 49% of shares will be sold centrally by the ECB to interested parties.The counties were given a deadline of Friday to agree on a "direction of travel." While some details remain to be finalized, particularly regarding the distribution of proceeds from the sale of ECB shares, the counties have granted their non-binding approval for the sale process to proceed.The 11 non-host counties have expressed concerns and are seeking independent financial advice. They emphasize the need for impartial guidance in a financial arrangement involving hundreds of millions of pounds.However, many non-host counties face financial challenges and rely heavily on central funding from the ECB. A recent study revealed that five counties have received emergency financial assistance from the ECB in the past two years.According to The Telegraph, the latest model proposes allocating 10% of the proceeds from the sale of ECB shares to recreational cricket, with the remainder distributed among the counties. The first £275 million would be shared equally among the 18 counties and MCC, while the next £150 million would be distributed among the 11 non-hosts. Any further proceeds would be shared equally again.A county chief executive expressed support for a deal but emphasized the importance of ensuring that the details benefit all parties and avoid widening the gap between richer and poorer counties.The host counties will determine the portion of their 51% stake they wish to retain, with the remainder being sold centrally by the ECB. Lancashire and Surrey have consulted with their members to keep them informed of the latest developments.The ECB has appointed Raine Group, a New York-based investment bank, to manage the sale process, which is expected to be completed later this year. The 2024 edition of the Hundred will serve as a showcase for potential investors. IPL franchises and investors from the US and UK have reportedly expressed interest.