A groundbreaking deal has been sealed as Marylebone Cricket Club agreed to sell a 49% stake in Lord's-based London Spirit to a Silicon Valley consortium led by Nikesh Arora for £145 million. This announcement comes amid a flurry of significant transactions involving teams from The Hundred, England and Wales Cricket Board's innovative cricket competition. Collectively, the sale of shares in five teams amounts to approximately £366 million.
The RPSG Group, known for owning the Super Giants franchise, was a contender in the race to acquire a stake in London Spirit but ultimately did not succeed. However, RPSG's ambitions were not entirely thwarted as they secured a 70% stake in the Manchester Originals during Monday's virtual auction. This acquisition marks Lancashire as the first host to cede a controlling share, with the county planning to use the proceeds to reduce debt, enhance facilities, and further develop a second ground in Farington.
Daniel Gidney, CEO of Lancashire, highlighted the strategic importance of securing an ideal partner, stating:
"We have been very focused on securing a great partner – ideally from the IPL – and RPSG has been our preferred bidder for some time." – Daniel Gidney
The Manchester Originals' partnership with an Indian Premier League team follows Lancashire’s agreement with Lucknow Super Giants, one of the new IPL teams that emerged from the league's expansion in 2021. This move is part of a broader trend of IPL teams investing in The Hundred, with Surrey negotiating a £60 million deal for a 49% stake in Oval Invincibles with Mumbai Indians' owners and Warwickshire agreeing to hand over 49% of Birmingham Phoenix to Birmingham City owners Knighthead Capital.
While Lancashire's deal stands out due to its unique structure, all successful bidders will enter into an eight-week exclusivity period to finalize these transactions. This phase is crucial to ensure that all aspects of ownership transfer are meticulously handled.
The size and scale of these deals have surprised many at the England and Wales Cricket Board (ECB), underscoring the increasing valuation and global interest in The Hundred's franchises. This influx of investment is expected to bolster the league's growth and elevate its profile on both domestic and international stages.
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