The process of private investment in The Hundred, the innovative cricket tournament in England, faces potential delays should suitable bids and investors fail to materialize. This perspective comes from Vikram Banerjee, the director of business operations at the England & Wales Cricket Board (ECB), who has been assigned the critical task of facilitating the sale of stakes in the eight franchises that compete in The Hundred.
At the beginning of September, the ECB formally initiated the search for private investments pertaining to the eight teams within The Hundred. Although the initial ambition was to finalize these transactions before the 2025 season of the tournament, the ongoing efforts to identify proper valuations and responsible ownership could extend the timeline.
A significant aspect of this investment structure involves the allocation of ownership stakes among the participating counties. Each of the eight hosting counties is designated to receive a 51 percent stake in their franchises, with the option to retain or sell that share. The remaining 49 percent will be available for purchase from the ECB. This revenue generated from the sale of the 49 percent share will be allocated among first-class counties, the Marylebone Cricket Club (MCC), and grassroots cricket initiatives across the country. To ensure transparency and a fair market value, the ECB has engaged financial advisors from Deloitte and Raine Group, supported by legal counsel from Latham & Watkins and Onside Law LLP.
The ECB is diligently evaluating the potential partners for these franchises, ensuring that any engagement aligns with their strategic objectives. A recent report highlighted the governing body’s concerns regarding Hampshire, warning that they could lose their stake in Southern Brave if the GMR Group—owners of the Indian Premier League's Delhi Capitals—fail to meet fair market value in their acquisition efforts. Reports from August indicated that the GMR Group had proposed a substantial £120 million deal for Hampshire, which could allow them to claim the 51 percent stake attributed to the county under this arrangement. Such scenarios raise the possibility of investors seeking to buy entire counties instead of individual franchises, provided these member-owned clubs undergo demutualisation. Currently, only Hampshire and Durham are exceptions to this requirement, as the rest of the counties are still member-owned entities.
Yorkshire, hosting the Northern Superchargers at Headingley, is navigating the demutualisation process while entertaining a bid from Sun Group, owners of Sunrisers Hyderabad. To proceed, Yorkshire requires a super-majority approval of 75 percent support from at least 50 percent of its 6,000 members.
Throughout the summer, the ECB has reportedly engaged in promising discussions with various prospective investors, including numerous interested parties from India and other international markets. During the season, these potential investors were invited to attend Hundred matches, emphasizing the significance of not only financial contributions but also the expertise these investors could bring to The Hundred. The ECB aims to partner with buyers who can elevate various aspects of the tournament, such as global engagement, sporting operations, and the overall spectator experience.
While there is an objective to announce investments in early 2025, Banerjee has clarified that the emphasis remains on finding the right market price and appropriate partners, suggesting that this pursuit may require additional time.
The London Spirit, a team based at the esteemed Lord's cricket ground, is projected to be the most desirable franchise in The Hundred. However, Banerjee indicated that the ECB would avoid hasty decisions regarding any teams. Should an ideal partner for the London Spirit not be identified, they would consider alternative arrangements with the MCC and continue operations without rushing.
With an estimated timeline of approximately six months for the transactions to be finalized, the ECB emphasizes the need for this investment before the start of the 2025 season. Incoming investors will play a crucial role in ensuring that the tournament runs smoothly, particularly in anticipation of the upcoming ticket sales and player draft expected in February and March.
Although a partial sale of franchises remains a possibility, Banerjee remains focused on securing complete ownership for all teams at this juncture, noting a strong level of interest from potential investors. As the competition’s media rights—responsible for most of the revenue stream—remain locked in until 2028, and given the operational salary cap designed to promote equitable competition, prospects appear promising for the tournament in the coming years, even amidst structural changes.
Regarding any future expansion of the tournament, Banerjee indicated that alterations to the number of teams would likely not occur before 2029. While regions like Durham and Somerset have been considered potential additions to the tournament in the near term, a careful assessment of The Hundred's evolution following new investments is vital to ensure continued growth and sustainability.
The ECB aims to create a framework that allows new investors to reap benefits while enhancing the overall landscape of cricket, ensuring that any future expansion aligns with the expectations of existing stakeholders and the rich cricketing heritage of England and Wales.