Big deal in The Hundred: English cricket gets a lifeline of £520 million

ECB have sold stakes in six franchises

The board have finalised a deal for stakes in Birmingham Phoenix, London Spirit , Manchester Originals, Northern Superchargers, Southern Brave and Welsh Fire. The stakes of all these teams have now gone to external investors. These investors are not common names—they include some of the world's richest people, technology giants and private equity groups.

Now only the stake of Oval Invincibles and Trent Rockets are left, whose deal are expected to be completed by October 1. When both these deals are completed, ECB will get a total amount of £520 million, which is a big financial relief for cricket.

The board have finalised a deal for stakes in Birmingham Phoenix, London Spirit, Manchester Originals, Northern Superchargers, Southern Brave and Welsh Fire. The stakes of all these teams have now gone to external investors. These investors are not common names—they include some of the world's richest people, technology giants and private equity groups.

Now only the stake of Oval Invincibles and Trent Rockets are left, whose deal are expected to be completed by October 1. When both these deals are completed, ECB will get a total amount of £520 million, which is a big financial relief for cricket.

Name issue stuck in Oval Invincibles deal

The Ambani family is leading in buying the stake of Oval Invincibles. However, there is a hurdle in finalising the deal-the name of the team. The Ambani family wants the team to play with the identity associated with the Mumbai Indians brand in the future. Talks with the ECB are going on, and this issue remains the reason for the delay in the deal.

The name dispute related to this demand of the Ambani family is now affecting the level of investment and branding as well. Because the ECB not only need money, but also need a clear direction regarding the identity of the teams.

Why did the ECB sell the stake in the franchise?

Finding investors for The Hundred has not been an easy process. The whole plan started with an auction in February, in which the total valuation of all the teams reached close to £975 million. After that, the ECB set the terms of exclusive talks with specific investors for each team. The talks went on for a long time, there were many changes, but finally six deals were finalised.

The board has sold a 49% stake in the franchise in some cases, while the entire stake of Northern Superchargers has been given to India's Sun TV Network. This is a big deal, because for the first time, a foreign media group has full ownership of an English cricket team.

What will the investors get, and what will remain with the ECB?

After the deal, the investors have control over the IP rights of the franchise; that is, their decision will be on things like the team's name, logo, and branding. Also, the ECB can no longer start any new short-form tournament as long as The Hundred is going on. The investors also have the right to veto the expansion of this tournament.

However, the full ownership of the tournament still remains with the ECB. The board will decide in which window The Hundred will be played and what its rules will be. That is, the board will still have control over the entire structure of the competition, but investors will have a major say in its operation.

Who will get the benefits, and where will the money go?

This huge amount that the ECB are going to get is not just for the tournament. The ECB will distribute it among all the county clubs, which have been struggling financially for a long time. Apart from this, £50 million will be invested directly in the development of grassroots cricket. This means that cricket will get new energy at the school, club and youth level.

This money will not only provide relief to the county clubs struggling with financial crisis, but cricket's hold in England can become deeper. The clubs that were drowned in debt will now get a chance to stand up again.

London Spirit's deal was the biggest

Among all the deals of The Hundred, the deal for London Spirit's stake was the most expensive. Tech executives from companies like Google and Microsoft have bought a 49% stake in this team for £145 million. The name of this Lord's based team is enough, and perhaps this is the reason why many big names came forward to invest in it.

This deal is an indication that The Hundred is being seen as a brand at the global level. Big names are investing money in it because they feel that its future is bright.

This year's tournament is about to start

This year, the new season of The Hundred is going to start next week. It will start with a clash between the London Spirit and Oval Invincibles. This match will not only be a clash of cricket, but also of these two big investments. Now all eyes will be on whether the quality of the tournament will improve after these deals or not.

How important were these deals for cricket?

For the last few years, the clouds of financial crisis were looming over English cricket. From the impact of COVID-19 to the falling revenue of county cricket, the board was struggling on many fronts. In such a situation, this investment can help in rebuilding the entire structure of cricket.

Through these deals, the ECB has decided to take cricket forward in a corporate format. Teams will now be presented by linking them with big brands. This can not only increase the audience, but can also accelerate sponsorship and digital engagement.

What's next?

On October 1, when the remaining two deals are also completed, the ECB will officially end this entire investment campaign. After this, the real test will begin- will The Hundred be able to live up to the expectations of these investors?

If this model is successful, then other cricket boards can also move in this direction. However, if the interest of the audience does not increase, then this plan of crores can become a burden.

ECB have taken a risk with The Hundred, but this time they have entered the field fully prepared. This model can give a new direction to cricket in England, but it all depends on how seriously the audience takes it. The presence of the Ambani family and other big names can make this tournament an international brand, provided the cricket on the field is also the same. ECB have laid the foundation, now it remains to build a successful building.