During the last two weeks, the ECB’s gross sales course of for stakes in Hundred franchises has reached its closing spherical. The whole valuation of the eight groups is an eye-watering £975 million however who’s shopping for what, and for a way a lot? This explainer will information you thru all of it.
What are traders truly shopping for?
Every profitable bidder has purchased shares in one of many eight groups within the Hundred, the ECB’s 100-ball competitors which launched in 2021. The offers are topic to exclusivity agreements over the subsequent eight weeks – within the occasion an settlement with the chosen investor will not be reached in that point interval, the group will return in the marketplace.
- Reliance Industries Restricted, the Ambani-owned conglomerate who run Mumbai Indians, are shopping for a 49% stake in Oval Invincibles. Surrey will retain 51%.
- Knighthead Capital, a New York-based funding agency, are shopping for a 49% stake in Birmingham Phoenix. Warwickshire will retain 51%.
- Cricket Investor Holdings Restricted, a consortium of Silicon Valley tech entrepreneurs, are shopping for a 49% stake in London Spirit. MCC will retain 51%.
- Sanjay Govil, an Indian-American tech entrepreneur and the proprietor of Washington Freedom, is shopping for a 50% stake in Welsh Hearth. Glamorgan will retain 50%.
- RPSG Group, Sanjiv Goenka’s conglomerate who run Lucknow Tremendous Giants, are shopping for a 70% stake in Manchester Originals. Lancashire will retain 30%.
- Solar Group, the media conglomerate who personal Sunrisers Hyderabad, are shopping for 100% of Northern Superchargers. Yorkshire won’t retain a monetary curiosity.
- Cain Worldwide, backed by Chelsea co-owner Todd Boehly, and Ares Administration Credit score, each personal fairness corporations, are collectively shopping for a 49% stake in Trent Rockets. Nottinghamshire will retain 51%.
- GMR Group, the Indian conglomerate which co-owns Delhi Capitals, are shopping for a 49% stake in Southern Courageous. GMR are additionally taking up host county Hampshire.
How will the offers work?
The ECB say the traders have dedicated to a minimal five-year interval, which is able to run by to the top of 2030. The offers don’t embrace a franchise price like these paid yearly by IPL franchises to the BCCI.
Do they know personal the groups outright?
It is difficult. The ECB has offered its 49% curiosity in every group, whereas the eight host golf equipment had the selection whether or not to promote some, all, or none of their 51% stakes. The bulk have opted to retain their shares, however three have offered a minimum of some, and Yorkshire are promoting their total share to the Solar Group.
However they are not shopping for the counties?
No. The vast majority of counties stay members’ golf equipment, and the gross sales course of relates solely to the possession of the eight Hundred groups – not their host golf equipment or their venues. That mentioned, it might open the door for additional funding down the road, with the GMR Group turning into the primary overseas homeowners of a county final 12 months once they purchased Hampshire.
What occurs to the cash raised by promoting the ECB’s stakes?
Ten p.c of the income will likely be invested in leisure cricket. The remaining will likely be cut up as follows: the primary £275 million is split 19 methods between the 18 first-class counties and MCC; the subsequent £150m is split 11 methods between the non-host counties; and something over £425m is split 19 methods once more. The Raine Group, Deloitte and the ECB’s attorneys will even take a share for his or her position within the sale.
And what occurs when a number membership sells a few of their stake?
The host membership retains 80% of the income raised from promoting its personal stake, with 10% going to the leisure recreation and the remainder shared among the many different counties (and MCC).
What does 49% of a Hundred franchise truly get you?
It relies upon. Buyers have been chatting with counties for a while, and preparations will likely be totally different at every venue. Every investor has an eight-week exclusivity interval with their host county during which they are going to signal authorized agreements and contracts outlining the small print of their joint-venture. However the franchise itself represents two groups (males’s and girls’s) with a proper to play within the Hundred, slightly than any tangible property like a stadium.
How will they make cash?
The Hundred groups have been run by the ECB thus far, however will now take management of their very own sponsorship, ticket gross sales (together with hospitality) and merchandise. The most important income will likely be a central distribution from the ECB, with the eight Hundred groups set to separate 80% of home and worldwide TV rights between them. Buyers will even hope that the enterprise worth of their franchise will increase because the Hundred grows.
How priceless is the published deal as issues stand?
The Hundred kinds a part of the ECB’s take care of Sky Sports activities for all cricket through the English summer time, together with internationals and county cricket. Round 1 / 4 of the general worth of that deal (£51 million approx. yearly) is ascribed to the Hundred. There has additionally been a a lot smaller take care of the BBC (as free-to-air broadcasters) which is up for renewal. The ECB could think about promoting the Hundred’s broadcast rights individually from 2029. It additionally hopes that worldwide TV rights will rise considerably within the subsequent rights cycle.
Will the groups be renamed?
Most likely, though not this 12 months. The ECB is treating the 2025 version of the Hundred – which runs from August 5-31 – as a transitional season, with new homeowners assuming full duty forward of the 2026 version. Some groups could retain their names and kits however the expectation is that a number of will change, significantly those that are majority-owned by established franchise manufacturers.
Will this funding imply the Hundred will get higher gamers?
Fairly probably, for numerous causes. Salaries are growing on the prime finish in 2025 and the ECB instructed traders that they need to put together for them to be even greater once they take over. New possession might additionally see gamers who’re related to a specific franchise concerned within the Hundred, whereas the overlap between traders within the Hundred and Main League Cricket ought to guarantee these leagues don’t conflict once more going forwards.
What about Indian gamers?
A number of ladies’s cricketers from India have already performed within the Hundred, together with Jemimah Rodrigues, Smriti Mandhana and Deepti Sharma, however no male Indian participant has. Whereas the involvement of 4 IPL possession teams might assist to immediate change in time, the ECB has been engaged on the idea that the BCCI will not be planning to alter its stance on lively Indian males’s gamers that includes in abroad leagues.
When will the Hundred turn into a T20 competitors?
The 100-ball format has usually proved standard with broadcasters, permitting them to suit video games right into a three-hour window. However there was loads of hypothesis that the match might change to the extra acquainted T20 format at some stage. In follow, the format is very unlikely to alter earlier than the present broadcast deal runs out on the finish of the 2028 season.
On an ECB name to mark the conclusion of the method, Vikram Banerjee, director of enterprise operations, mentioned: “The facets of the Hundred which have labored properly when it comes to reaching out to a brand new market, the truth that it finishes at 9.30pm so households can attend and watch – all these kinds of issues are a part of what’s appealed to traders. So at this time limit, we’ve not had an enormous quantity of clamour for altering the format.”
Will extra groups be added?
Equally, that is unlikely to occur within the subsequent 4 years – although a number of counties have expressed an curiosity in internet hosting a Hundred group if the match does increase in future, together with Durham, Somerset, Kent (at Beckenham) and Gloucestershire. Richard Gould, the ECB’s chief govt, mentioned final summer time that there’s ambition for enlargement in some unspecified time in the future.
Banerjee mentioned on Thursday: “Growth is an efficient signal if it occurs, so I will be delighted if it does… If the match grows and cricket grows throughout the nation, then it will be nearly a no brainer.”
Matt Curler is an assistant editor at ESPNcricinfo. @mroller98
