In a landmark move for English cricket, the England and Wales Cricket Board (ECB) is selling stakes in its franchise teams as part of an initiative to inject much-needed cash into the sport. This strategic decision aims to enhance financial stability and attract global investments, particularly through the lucrative format of The Hundred. The latest development involves a consortium of tech leaders acquiring a significant stake in the London Spirit, one of the eight franchises in The Hundred.
The ECB's decision to sell stakes comes as part of a broader strategy to ensure the longevity and prosperity of cricket in England. By allowing franchises to attract outside investment, the ECB hopes to bolster the game financially while maintaining control over The Hundred competition. The eight teams involved in this innovative format are London Spirit, Oval Invincibles, Southern Brave, Welsh Fire, Trent Rockets, Birmingham Phoenix, Manchester Originals, and Northern Superchargers.
Each host team has been allocated a 51% stake in their franchise, which they have the option to keep or sell. The ECB retains overall control of The Hundred, ensuring that the competition's integrity and objectives remain intact. According to ECB estimates, the combined value of all eight franchises is a minimum of £350 million.
The auction process for these stakes began recently, with two significant sales occurring within a short timeframe. On Thursday, a 49% share in the Oval Invincibles was sold to the owners of the Indian Premier League's Mumbai Indians for approximately £60 million. The following day, a similar stake in Birmingham Phoenix was purchased by Knighthead Capital, owners of Birmingham City Football Club, for about £40 million.
Adding to the growing list of investors, the owners of Major League Cricket franchise Washington Freedom have also agreed to buy a stake in Welsh Fire. These transactions reflect a burgeoning interest in cricket from international investors, particularly from the tech and sports sectors.
The consortium that has secured the deal for London Spirit is known as Cricket Investor Holdings Limited. This group includes several high-profile figures from the technology sector: Egon Durban, CEO of Silver Lake Management; Satyan Gajwani, co-founder of Major League Cricket and vice-chairman of Times Internet; Satya Nadella, CEO of Microsoft; Shantanu Narayen, CEO of Adobe; and Sundar Pichai, CEO of Google. Nikesh Arora, CEO of Palo Alto Networks, is leading this consortium.
The deal for London Spirit is valued at approximately £300 million, with the consortium investing £145 million for a 49% stake. This investment not only signifies a robust belief in the potential growth of The Hundred but also highlights cricket's increasing appeal to global business leaders.
As of now, the total sales from stake auctions have reached around £285 million. The hosts of the various teams—including prestigious entities such as the Marylebone Cricket Club (MCC), Surrey, and Warwickshire—have opted to retain their 51% shares in their respective franchises. This collective decision reflects a commitment to safeguarding their interests while also recognizing the potential benefits that external investment can bring.
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