Contract dispute between the ACE and USA Cricket

The origin of the problem

It was back in 2019 that the root of the problem had its origin. Back then, the USA Cricket struck a deal with the American Cricket Enterprise Inc. (ACE), a private group, allowing it to run elite T20 cricket in the nation. Not many nations had earlier attempted such a setup, and hence, it had come as a surprise.

As a part of the deal, ACE was contracted to fund the national teams, construct six international stadiums and also run a few professional leagues that would improve the cricketing scene in the nation. The contract duration was 50 years, and the USA Cricket signed the agreement while agreeing to a 5% share of the earnings.

American Cricket Enterprise Inc. (ACE)

It is a private group co-founded by Sameer Mehta, Satyan Gajwani, Vijay Srinivasan, and Vineet Jain. They came up to grow the game of cricket in the United States of America.

Along with funding the national teams, one important initiative by the ACE is Major League Cricket, which is one of the important T20 events on the cricketing calendar. The tournament has managed to attract good viewership while also helping the budding cricketers in the USA hone their skills.

What exactly is the issue?

There are quite a few contractual issues between the USA Cricket and the ACE. It is a problem that has gradually evolved, and it is now threatening the game itself in the United States.

The standoff is due to various claims by the USAC, such as the ACE not honouring its promise of building stadiums, and also its handling of the player salaries. While these are some of the principal concerns, as cited, it is an intricate subject, and there are diverse underlying disagreements, as well.

How has ICC entered into the narrative?

The USA is an Associate Member of the ICC. With this category, USAC does not have full voting power, and the funding from the ICC will not be at its premium level. At the same time, ICC has a few demands and directives that the members will have to follow.

USAC's contract situation with the ACE has set apart numerous such requirements by the ICC, like autonomy, conflict of interest, and financial transparency. In 2022, ICC reviewed the USA's contract with the ACE and made a few suggestions. After the 2024 T20 World Cup, the ICC also served a notice to the board. In the recent AGM, ICC has asked USAC for a detailed correction, including the resignation of the current members and the holding of new elections within three months.

USA's contract situation is different when analogised to the other cricket boards

All the cricket boards under the jurisdiction of the ICC remain out of the control of the governments of the respective nations. It is a key feature to enable these boards to be independent and align with ICC's vision of the game.

However, in the USAC's issue, the agreement with ACE makes it not thoroughly honour the autonomous demand. There is also monetary complexity, further adding layers to the crisis.

Board of Control for Cricket in India (BCCI)

When it comes to cricket boards, the richest and most powerful body is the BCCI. It is an interesting aspect to compare USAC's governance with that of the BCCI.

BCCI recognises itself as a private body and claims independence from the government. This is mainly because of the fact that the BCCI does not depend on funding from the Government of India for its functioning. Thereby, BCCI is completely free from the jurisdiction of the GOI. In this way, BCCI's functioning aligns with ICC's requirements.

BCCI could be involved in a complex situation with a new bill

Recently, a new bill called the National Sports Governance Bill, 2025, was introduced in the Lok Sabha by the Sports Minister. As per this bill, all the sports governance bodies in India will come under the authority of the Indian Government. 

This also means that the BCCI will have to comply with the Right to Information Act of 2005. The disputes of the BCCI will be handled by the National Sports Tribunal, unlike the earlier route of traditional courts. All of this means that the BCCI may not be an autonomous body anymore. It needs to be seen how the BCCI shall handle this and the ICC's views on the same.

USA Cricket had to be structured differently for its rise

A couple of years ago, Cricket was an alien sport in the United States of America. A lot of other sports, such as baseball and basketball, were and are still dominant. Even football did not have a fortress back then.

On the other hand, the ICC had to tap into the market of the USA. The game needed to be developed in the States. All of this made USAC explore various alternatives, resulting in an agreement with a private group.

The rise of the game in the USA

It was a journey of a few years that has led to the rise of the game in the United States of America. A lot of structure was brought in at the grassroots level to hone the skills of cricketers and also provide the infrastructure needed for the game's development.

A lot of cricketers also explored the opportunities that came up in the USA. Many popular players from other nations, such as Corey Anderson, Juan Theron and Liam Plunkett, left their respective nations to make an impact in the USA. A few have been successful so far. In the 2024 T20 World Cup, the USA defeated Pakistan and also reached the Super 8s. This remains the most noteworthy accomplishment by the nation till now.

Major League Cricket

Organised by the ACE, it was one of the contract conditions with the USA Cricket. It took a few years to establish it, but MLC has been doing well on the international scene. Already, three editions have happened, and the league looks set for a long haul.

Major League Cricket has been successful in attracting some of the Indian investors, as well. Owners of IPL teams like Mumbai Indians and Kolkata Knight Riders own a franchise in this league, too. With the arrival of these stakeholders, the competitive edge of the league has grown. MLC has also attracted popular cricketers like Pat Cummins, Steve Smith and David Warner. Some of the coaches involved in the league include legends like Ricky Ponting and Shane Watson. 

All of it is now in troubled waters

The USA Cricket and ICC are in a serious standoff right now. ICC needs the resignation of the current members of the board. However, that has not transpired, and there is too little time to make revisions.

If the ICC does suspend the board, it will be a big blow for the game in the USA. Especially after the emergence of talent in the nation, it will be a big blow for many players who had invested plenty in the nation's fortunes.

Cricket, in general, will be affected too

The USA is a big market for any product. Cricket is a sport that needs growth, and if it has to reach the level of football eventually, a big market like the USA is extremely vital. The USA has organic reach for the game, especially because of the subcontinent population in the nation.

If the USA National Team is affected, the momentum gained so far will be lost. A lot of the infrastructure is in the right place, and with the 2024 T20 World Cup, which was co-hosted by the USA, gaining decent success, there is clear proof that the game can grow immensely in the nation. The stunt in growth can be difficult to recover from.

Aspirations of cricket in the Olympics

In the 2028 Los Angeles Olympics, cricket will mark a return to the event after a gap of 128 years. It was back in 1900 in Paris that cricket was a part of the biggest sporting event on the globe.

Key factors for this were the rise of the game in various parts of the globe, especially in the United States of America. The success of MLC and the 2024 T20 World Cup further restates the influential facets behind cricket's selection for the Olympics.

USA National Team in the Olympics

It has been confirmed that cricket in the Olympics will be played in the T20 format, for both the men's and the women's versions. The competition will be between six teams to end up on the podium.

It is still not clear how these six teams will be selected for the event. The USA is an associate member of the ICC, and it is outside of the Top 10 when it comes to the rankings. Hence, on merit, the USA may not be incorporated. However, the Olympics are being hosted by the nation, and there are calls for the host country to be included, as well.

USOPC will play a key role here

If the host nation is allowed, a lot will depend on the United States Olympic & Paralympic Committee (USOPC) and its decisions. It is the key institution that will decide how the entire fiasco will be handled.

Already, USA Cricket has broken many norms, especially when you refer to the Ted Stevens Act — the U.S. law that depicts the framework for National Governing Boards (NGBs) and their association with the USOPC. If USAC does not meet the requirements, the National Team might not play in the Olympics.

ICC's steps will be keenly watched, as well

In the past, the ICC has come down hard on boards that have failed to comply with its requirements, especially with regard to autonomy. The most recent one is related to Sri Lanka in 2023. ICC banned the board and the team, citing that the government had interfered with the functioning. It was lifted after the board took adequate steps to honour the compliance requirements by the ICC. Before this, a similar scenario had occurred with Nepal and Zimbabwe, as well.

However, in the case of USAC, it is quite different. While many of the regulations are not met, ICC will have an eye on the future of the game. USAC is in a complex situation, and it will take time to untangle itself. With the Olympics nearing and cricket doing well in the States, any move by the ICC will have a prominent consequence on the expansion of the sport.

What's next for the players?

The USA Cricket infrastructure includes players who have left their nations to explore prospects in the US. Hence, it is critical for them that the region is stable when it comes to the game.

Many of the cricketers in the US still hold a job outside of the sport. It is only now that things are changing, and cricket is being seen as a viable profession. The upcoming months will, therefore, decide the futures of many.