Investors interested in acquiring stakes in The Hundred franchises have expressed significant dissatisfaction with the sales process implemented by the England and Wales Cricket Board. This frustration is particularly acute as the process is set to conclude with the final bids in the upcoming two weeks. Potential bidders are concerned that their extensive efforts to cultivate relationships with prospective partners over the past five months might be nullified if the final decision is swayed primarily by financial bids, rather than the partnerships they have worked to forge.
In early September, the ECB issued an invitation for bids on 49% stakes in each of The Hundred's eight franchises. The sales process is being managed collaboratively by the US-based Raine Group and Deloitte. The board has argued that the process aims to attract strategic partnerships critical for The Hundred's future viability and to ensure the long-term financial health of English domestic cricket.
The final stage of this process is set to commence imminently, following the selection of a shortlist of potential partners by each host venue. Those shortlisted will be invited to participate in a period of exclusivity, determined either through sealed bids or an auction, depending on how many bidders remain in contention.
Some investors have voiced their discontent, asserting that the concluding phase appears to prioritize financial bids over the comprehensive evaluations of potential partners that they assumed would be considered. This has taken many by surprise, especially those who believed their extensive discussions would add weight to their bids. An insider hinted that the final decision is shaping up to be a straightforward competition based on the highest financial offer, which they believe undermines the significant investment of time and resources that went into establishing meaningful partnerships.
These bidders are notable figures within the realms of business and sports, possessing commendable backgrounds. However, the perceived unpredictability of the process has raised concerns. The sentiment resonates across the board as many stakeholders emphasize the importance of forming partnerships over simple financial transactions during this crucial juncture for English cricket.
In response to the mounting concerns, the ECB has defended its sales process, asserting that it is not merely a matter of selecting the highest bidder. They describe the process as comprehensive and thorough, highlighting the elimination of over 100 initial expressions of interest through collaboration with the eight host venues. According to the ECB, this approach has allowed venues to define their preferences, leading to the exclusion of certain lucrative bids during earlier stages.
Richard Gould, the chief executive of the ECB, has previously downplayed the criticisms suggesting that some investors are merely attempting to manipulate the narrative through media channels. An ECB spokesperson reiterated that host venues have selected their partner shortlists based on operational preferences rather than solely on financial criteria.
The board is focused on attracting diverse investors with the necessary skills and experience to foster the growth of The Hundred. The ECB acknowledges that the significant interest from a variety of stakeholders inevitably translates to disappointment for those who are ultimately unsuccessful. Moreover, they assured all remaining bidders that each participant has provided bids throughout the entire process. Specifically, queries have emerged regarding the recent introduction of a consortium from Silicon Valley led by prominent figures, including Nikesh Arora and executives from major tech companies. The ECB maintained that there have been no recent entries since the initial bidding deadline of October 18.
Another investor participant described the sales process as convoluted, asserting that communication issues have led to considerable confusion among bidders. However, this individual expressed respect for the ECB's objective to optimize the financial outcome from these sales.
Richard Thompson, the ECB chairman, underscored the ambition to generate a minimum of £350 million through this sales process. This figure appears to be linked to establishing a preliminary benchmark that reflects the total value of all eight franchises. The funds generated from selling these 49% stakes will be allocated among 18 first-class counties, the Marylebone Cricket Club, and various recreational cricket initiatives in England and Wales.
The possibility of an "IPL takeover" of The Hundred has been firmly dismissed by Thompson, despite acknowledging the involvement of at least five Indian franchise owners—CVC, known for its management of the Gujarat Titans—who are also current bidders. Alongside them, a number of US investors are actively participating, including Sanjay Govil, an owner in Major League Cricket, and Avram Glazer, a co-chairman of Manchester United.
The ECB has highlighted that funds raised are intended to secure the financial realities of county cricket for the next two to three decades. Additionally, the board has articulated plans to implement safeguards ensuring that the counties utilize these funds sustainably—aiming to pay down debt, build financial reserves, and invest in enduring projects that will benefit cricket at all levels.
As the stakes rise, both in terms of financial investment and the future prospects for cricket in England, the outcomes of this sales process will have substantial implications for the sport's ecosystem. Investors await the final phase with a mix of anticipation and concern, hoping for a resolution that balances financial returns with the strategic growth of The Hundred and its franchises.