English Cricket Poised for Influx of International Investment
For decades, foreign investors have expressed keen interest in English soccer. Now, their attention is turning to another quintessential English sport: cricket.
Recently, auctions for franchises in The Hundred, a tournament inspired by the popular Indian Premier League (IPL), have attracted considerable investment from India, Silicon Valley, and New York. This vibrant competition captivates audiences with its eye-catching uniforms, and NFL-style player entrances complete with plumes of smoke.
Initially introduced to attract a younger generation and more female fans, The Hundred has since garnered attention from traditionalists seeking a more modern take on the game. Each franchise boasts both a men's and women's team, providing a platform for both genders to showcase their skills.
Facing financial challenges, particularly after the pandemic, English cricket is poised to capitalize on the sale of these franchises, which have American-style nicknames and play in some of the world's most iconic cricket stadiums. The expected revenue exceeds £500 million ($620 million).
The London Spirit has made headlines with a consortium of tech billionaires, including Google CEO Sundar Pichai and Microsoft CEO Satya Nadella, acquiring a 49% stake for £145 million ($180 million). The team plays at Lord's, the legendary ground renowned as the "home of cricket."
Indian investors have also expressed significant interest, leveraging their passion for the sport. Among them is Sun Group, owner of Sunrisers Hyderabad in the IPL, which purchased the Northern Superchargers for £100 million ($125 million). Reliance Industries, the parent company of Mumbai Indians, invested £60 million ($75 million) in the Oval Invincibles, while RPSG, owner of Lucknow Super Giants, acquired 70% of the Manchester Originals for £81 million ($100 million).
American investors are also joining the fray. Knighthead Capital Management, with NFL legend Tom Brady as one of its investors, has secured a 49% stake in Birmingham Phoenix for £40 million ($50 million). The firm sees The Hundred as a significant growth opportunity, citing the absence of relegation as an attractive factor.
The Auction Process
The England and Wales Cricket Board (ECB) aims to raise significant funds by selling shares in the eight franchises participating in The Hundred. Investors are eligible to acquire a minimum of 49% ownership, with the affiliated counties holding the remaining 51%. Counties are at liberty to sell all or part of their remaining stake if desired.
The ECB initially targeted £350 million ($435 million) from the auction, but is expected to surpass that figure, driven by the substantial investment in the London Spirit.
The Investors
Successful bidders hail from India and North America. Aside from the Silicon Valley consortium and Knighthead Capital Management, Sanjay Govil, an Indian-American tech entrepreneur, has acquired a stake in Washington Freedom of Major League Cricket.
The share of Southern Brave is likely to be acquired by GMR Global Pte Ltd, a part-owner of Delhi Capitals, due to its existing partnership with Hampshire, the county team affiliated with the Brave.
Distribution of Funds
Proceeds from the sale will be divided among the 18 established county teams in England and Wales, as well as the Marylebone Cricket Club, the custodian of Lord's and the laws of cricket. A substantial portion will also be allocated to recreational cricket in England and Wales.
Impact on The Hundred
Investors will enter a period of exclusivity to finalize their partnerships with the franchises, suggesting minimal changes to the 2025 edition of The Hundred. However, the impact is anticipated to become more evident in 2026, potentially leading to alterations in team names and other aspects of the tournament.