Will auctioning The Hundred teams save English cricket?

In an effort to capitalise on The Hundred’s success, Richard Thompson, chairman of the ECB,  initiated the process of auctioning 49 per cent stakes in each of the teams.

• EasternEye
• 09 October, 2024

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By: EasternEye

RICHARD Thompson, chairman of the England and Wales Cricket Board (ECB), recently reflected on the complexities of English cricket while observing Lord’s famous slope. As English cricket faces financial challenges, Thompson’s latest plan aims to shore up the sport’s finances by auctioning stakes in The Hundred teams.

Many county teams are struggling financially, despite the ECB generating £320 million annually from TV rights and other commercial deals, according to The Times. Of this, £120 million goes to county teams, but several still face financial difficulty. Rod Bransgrove, the outgoing Hampshire team owner, questioned whether there should be such financial trouble when England games bring in so much revenue.

Inspired by the success of the Indian Premier League (IPL), The Hundred was launched three years ago. The 100-ball format, which features eight county teams, was created to attract new audiences, including women and families. It has proven successful, with growing TV audiences and significant financial contributions to the county game. Women’s matches have also gained popularity, surpassing viewership for the EFL Championship.

In an effort to capitalise on The Hundred’s success, Thompson initiated the process of auctioning 49 per cent stakes in each of the teams. The move could raise between £152 million and £381 million, depending on the level of interest from private equity firms, US sports conglomerates, and Indian investors, reported the newspaper.

Earlier this year, IPL founder Lalit Modi offered the ECB £763 million to host an IPL-style competition in England, although the proposal was rejected. However, it spurred the ECB to explore alternative financial options. Thompson decided to pursue the sale of The Hundred’s teams instead of selling the competition itself.

Raine, a merchant bank that facilitated the sale of Premier League clubs Chelsea and Manchester United, is overseeing the auction. Thompson was initially expecting interest from 40-50 parties, but 100 potential buyers have already come forward, reported The Times. However, Lalit Modi criticised the ECB’s revenue projections, calling them unrealistic. He believes that the key to higher revenues lies in attracting Indian players, though current rules prevent them from playing in overseas leagues.

Thompson remains optimistic, believing IPL ownership in The Hundred could unlock access to Indian talent. He also emphasised the positive impact of The Hundred on women’s cricket, describing it as “seminal and transformational.” Despite criticism from traditional cricket fans, Thompson insists the game must adapt to secure its financial future.