The Hundred Sale : Stauss on the Subject

 

25/07

Strauss on the Hundred Sale or buying a slice of the H*ndred pie. A massive conflict of interest, so why would anyone listen to what he has to say ever again?

22/07

ECB Approach NFL owners

Car crash’ Hundred sale plans in danger of falling hundreds of millions short of ECB target

Exclusive: Potential investors losing interest amid counties’ reluctance to sell any of their share
By Tim Wigmore, DEPUTY CRICKET CORRESPONDENT18 July 2024 • 6:45pm

Fears are growing that the Hundred will not generate the cash injection that English cricket is depending on with a series of potential investors losing interest.

Plans to sell off stakes in the eight Hundred teams for up to £500 million to provide a vital new source of cash for the English professional and grass-roots game have been thrown into jeopardy by counties’ refusal to give away any of their share.

The England and Wales Cricket Board plans to go to market in September, with a view to deals with investors being confirmed later in the year. But investors have been left deeply frustrated by the process so far, with one representative from an Indian Premier League side lamenting that “the numbers don’t stack up” and were “delusional”.

Potential investors have expressed concerns about:The majority of counties pushing to keep full control of cricket operations
A lack of clarity from the ECB
Counties’ veto power over who could buy stakes in teams
Indications from most counties that they plan to hold onto their full 51 per cent majority stakes
The lack of guarantees about the full availability of England players
Fears it could take decades for buyers to see a return on investment

‌A number of potential investors contacted by Telegraph Sport, who in many cases are already part of other major franchises around the world, have said that they are not currently inclined to bid. One party with knowledge of the situation described it as a “car crash”.

The plans for the sale will see the ECB hand 51 per cent of the eight teams to the host county – or club, in the case of MCC at Lord’s. The remaining 49 per cent would be sold to private investors by the ECB, with the host county welcome to sell as much or as little of their share as they please.
Proceeds might not cover existing debt

The proceeds of stakes in the Hundred will be divided up between the 18 first-class counties, MCC and the recreational game. It was envisaged that the sale would secure the future of the county game for generations to come. Yet it is now thought that the proceeds might not even cover existing debt levels among some counties. Total debt in the county game is estimated to be nearly £200 million.

Talks are ongoing between the ECB – who are being advised by Raine Group and Deloitte – and potential investors. Raine managed the recent 25 per cent of Manchester United to Sir Jim Ratcliffe’s Ineos as well as the 2022 sale of Chelsea.

This year’s Hundred competition begins on Tuesday, with interested parties using the season to assess the tournament before deciding whether to bid for teams in September.

“So much detail is missing and yet the timelines are rather optimistic,” said one member of the ownership group of an IPL team. Another figure, who owns a major team in a different league, said that the ECB was handling the process “so badly” and there was “a big lack of clarity,” with “lots of questions” remaining.

Investors contacted are unclear whether they were only allowed to use the grounds on match days, or would assume control of the venues for the duration of the tournament – potentially allowing these to stage other events.

The preference for those who own existing franchises elsewhere in the world is to run the cricket among the men’s and women’s Hundred teams.

“Anyone investing in a cricket team wants to run it, especially if they have other teams,” said one potential investor.
Some counties want strong representation of their players in Hundred teams

Some Hundred teams have privately indicated that they might be willing to cede control of the cricket side of the operation, notably Northern Superchargers and London Spirit.

But conversations between potential investors and counties have indicated that a number of county officials would push to retain clear links between the host counties and the Hundred side. There is a clear desire among some counties to ensure a strong representation of their own players in the Hundred team who play at the same venue.

IPL sides have long let it be known that they are keen to buy a controlling stake in Hundred teams, replicating the model under which they have invested in other leagues. Without such a controlling stake, Hundred sides would be far less attractive.

One figure estimated that a 49 per cent stake of a Hundred team would only be worth about 25 per cent of a complete stake – so, if a side was hypothetically valued at £100 million, they would only be prepared to pay £25 million for a 25 per cent share.

So far, investors report that only a couple of Hundred teams have indicated an openness to selling any of their 51 per cent stakes. One source suggested that if private investors bought in the region of 60-70 per cent of teams they would gain sufficient control while also ensuring that counties still had a financial stake in the sides.

A further barrier for some investors is that they believe that the ECB expects all money to be paid up front – rather than in instalments over several years. With the average Hundred team making in the region of £500,000-a-year, it could take decades for investors to earn back their initial payment. Investors in sports teams generally expect to be in profit within a decade at the most.
Hundred needs to attract more star talent

Some IPL investors have been put-off by the ECB indicating that they envisage only around four of the eight teams being sold to IPL owners. Last year, the Women’s Premier League – a women’s version of the IPL – launched in India, with a blind auction, which was credited for maximising the value of the teams.

But with counties retaining veto power over who buys the stake in their sides, a group could be the highest bidders for a side but be rejected. An alternative suggested to Telegraph Sport would be for all prospective owners to be vetted before being allowed to bid, with the bids then determined by the highest financial offer.

Potential investors are conscious of the need for the Hundred to attract more star talent, with the league facing heightened competition from the USA’s Major League Cricket and other tournaments. This season Pakistan star fast bowler Shaheen Shah Afridi signed for Welsh Fire but withdrew from his contract after he was offered more money to play in Canada’s Global T20 League, as Telegraph Sport first revealed.

Australia captain Pat Cummins, who has never played in the Hundred, recently signed a four-year contract with Major League cricket.

The top salary band for players in the Hundred is currently £125,000, with a £10,000 top-up bonus for captains. Investors believe that salaries for top players need to reach £300,000 per year to guarantee that the world’s leading talent is available for the competition and realise the ECB’s ambitions of making the Hundred the second-best short-format league in the world.

Some potential investors own franchises in multiple leagues and would be keen to guarantee that these players could appear for their Hundred team. This would entail a shift in player recruitment rules, enabling Hundred sides to contract players independently of the draft.

With no current prospect of India players appearing in the Hundred, the complete availability of English players is a major priority for potential investors. This year’s Hundred clashes with the third Test between England and West Indies. Prospective investors would like a window cleared for the competition.

19/06

A WORD FROM THE CHAIR

Dear member,

We hope that you are well and that, despite the unseasonal weather we have been experiencing, you are enjoying the cricketing summer, as the domestic season gets into its stride and our Men’s Test match draws near.

Further to our member update in May, and following the members’ forum during the Hampshire game, we are writing to provide further information in relation to the ongoing discussions around The Hundred.

At the forum, we addressed a number of questions from members who were present, and we thought it would be useful to share those with the wider membership, along with an update on matters that have occurred since then.

At that time, the ECB had sought non-binding agreement from the 18 First-Class Counties and the MCC on the capital distribution model, which would determine how any funds raised from private investment would be shared.

Following a number of meetings, a consensus was reached which would mean that the eight current host venues of teams in The Hundred would be given a pre-sale 51% share of the team based at their venue, with the ECB retaining the remaining 49% share in all eight teams. We would, therefore, gain a 51% stake in Trent Rockets.

Each party would then be able to decide whether to sell any equity share to private investors – and how large a percentage they would like to make available.

Any proceeds derived from any sales, whether of stakes owned by the ECB or the host counties themselves, would be divided by a pre-agreed mechanism between host and non-host counties, and 10% would also be ringfenced to support the recreational game.

As you may have seen, the Raine Group and Deloitte have now been appointed as financial advisors for this process, with their first task being to assess levels of interest in the market.

More information here

The priority is for this investment to help The Hundred and the rest of our sport to prosper over the longer term – at a time when many parts of the game are in need of an urgent injection of funds.

The finances of the county game are challenging, and pressures are increasing as we seek to maintain an established county club and domestic structure, develop the women’s game, grow participation, and invest in facilities to ensure that both established and new audiences have an enjoyable experience of cricket across all formats.

We acknowledge that this is a complex issue, and new territory for the majority of us involved in the game. There is a significant amount of work to undertake, and we will need more information to be able to address a number of important considerations. However, there are two points on which we can provide clarity, both of which were raised at the forum.

The ECB is not selling any shares in the tournament itself, only in the eight competing teams. Therefore, whatever the outcome of any sales process, the game will retain ownership and control over The Hundred as a competition. That includes key elements such as regulation of the tournament and the playing schedule.

Secondly, we would like to emphasise that this process relates to Trent Rockets only and not to the sale of any part of Nottinghamshire County Cricket Club or Trent Bridge.

In the next few weeks we expect to receive more updates from the ECB and to expand our knowledge in a number of areas. That should enable us to begin the consultation with you.

In the interim, we are keen to ensure that we receive your feedback and are able to raise and address your questions throughout this process, so that we can all become more comfortable in our understanding of this topic.

We have, therefore, set up an email account where you can address any queries you may have at this stage. Please direct any such enquiries to thehundred@trentbridge.co.uk.

We will continue to share information and seek your views as the process continues, so that we can collectively move forward and be in a position to make the right decision for our club and the wider game at the appropriate time.

Best wishes

Andy and Lisa

An after the event briefing...

and a lot of unnecessary rubbish about women's cricket which is being presented as a done deal and expense in the name of diversity.

Dear Member

We hope that you are well, and enjoying the opening exchanges of the season.

As our summer schedule gets into full swing, we’re writing to provide an update on a number of important matters in relation to our club and the wider game in this country.

These include the future model of The Hundred; as you will no doubt have read, the ECB, the 18 First-Class Counties and MCC have been working together to agree a shared direction that would enable the game to move discussions forward.

In recognising the differing needs and responsibilities of host and non-host counties, along with the particular infrastructure and financial challenges being faced by many, it was agreed that any proposals should be underpinned by some key principles.

The long-term financial sustainability and strategic growth of the game was paramount, as was ensuring that all stakeholders would benefit financially, including the recreational game.

Following a series of meetings this month, the ECB developed and sought non-binding support on the capital distribution model which would enable the game to fully consider all implications of external investment into The Hundred.

After discussion as a General Committee and Executive Team, we believed it was important to support this broad approach and consider the possibilities open to us as a club and for the wider game.

We have also asked for further clarification in some important areas so that we, along with our fellow First-Class Counties, are able to collectively explore the options available. This will then enable us to share ideas, and to ultimately build a formal proposal to consult with you on, over the summer.

This may take some time to bring together, but please be assured that we will start this process as soon as we have meaningful detail.

Alongside this, we are continuing to progress plans on the proposed redevelopment of our Pavilion. A full planning application has been submitted to Rushcliffe Borough Council, and we are working through the necessary process before awaiting a decision. Once this has been completed, we will be in a better position to work through the probable timelines.

We’re delighted to have received a positive public response to date. Following feedback from the planning authority, we developed and included a number of computer-generated impressions of the proposed new look to our Pavilion. To gain a sense of how the building is expected to sit in context within Trent Bridge, please find one such CGI image here...

As outlined in our previous update to you, and at our Annual General Meeting, this redevelopment will bring many benefits – not least the ability to house four competing teams within our Pavilion, each benefiting from their own self-contained, dedicated changing rooms.

The demand for such facilities has become ever-more pressing with the advent of regular men’s and women’s double-headers, as we seek to grow the game and ensure quality provision for all of our Trent Bridge teams.

This has become more important as, having been home to The Blaze since November 2022, we’re delighted to have had our status as host for a Tier One women’s team from 2025 now confirmed.

We will be joined by Durham, Essex, Hampshire, Lancashire, Somerset, Surrey and Warwickshire in Tier One of the new structure, with Glamorgan and Yorkshire joining from 2027.

Funding for the new teams has been agreed for the next four years, and we are now working with the ECB on the finer detail of the new setup.

This long-term opportunity to showcase and grow the women’s game within our county borders is fantastic news– and we hope that those of you who joined us for the team’s first two fixtures at Trent Bridge this summer enjoyed the contest on display. If you haven’t yet watched The Blaze, we encourage you to join us for one of the upcoming Charlotte Edwards Cup T20 matches at our home, on Thursday 23 and Friday 31 May.

The support of our neighbouring First-Class Counties will continue to be crucial as the women’s game enters this new era, and as we seek to ensure that opportunities are spread across the wider East Midlands region.

We will, of course, keep you updated on all of the topics discussed above – including at our members’ forum on Friday 17 May – as we continue to enjoy our bumper schedule of domestic and international cricket this summer.

Best Wishes Andy and Lisa

14 December 2023

Dear member,

We hope that you are wintering well and enjoying making plans for the festive season.

As we come to the end of another year, we wanted to provide you with an update on a number of key matters relating to the club and the wider cricketing landscape.

We’re sure that many of you will have had a keen eye on recent media reports concerning the game as a whole – including speculation about the future direction of The Hundred.

We appreciate that, when delivered in isolation, this speculation and the differing opinions and views being expressed has the power to create discourse and a degree of mistrust – especially when snippets of information are shared in a somewhat sensationalised fashion, without any context or supporting information.

To date, there have been two meetings held between the ECB and the Chief Executives and Chairs of the First-Class Counties, at which the English domestic game’s place in the global landscape of cricket has been discussed – along with the significant financial pressures being faced by many clubs.

To date, there has been no formal proposal, timeline or agreed process for any change to the structure of The Hundred. We expect a further meeting towards the end of January where we hope to receive more information.

Naturally, this topic has a significant degree of complexity, and so we are working closely with the ECB and other counties to evolve our understanding so that we are able to address the myriad of questions we will all have.

Clearly, this is a very emotive area for our game, and the wider implications of any changes must be carefully considered. Our understanding is that we will receive formal proposals towards the end of March 2024, but this should become clearer after the January meeting.

We will provide any meaningful updates throughout the first quarter of next year – and once we receive proposals, we will share them with you and then undertake a formal consultation process.

That process will include a variety of options to ensure you can all engage with us via your preferred method, and will include written briefings, face-to-face meetings and online options via Zoom.

Irrespective of what you may read or hear, please be reassured that we will keep you fully updated in the months ahead.

As on-field matters continue to hold our attention this winter, we are examining our next steps off the field in relation to developments and improvements at our historic home.

Our package of major matches between 2025 and 2031 (including two Men’s Ashes Tests, two visits from India Men and four women’s white-ball games) gives us a degree of long-term certainty, but also places into focus the need for our facilities to evolve, to ensure we remain at the top table and retain our status as a Test Match venue.

With multi-format squads and compacted schedules, the playing, coaching and support staff of touring teams are ever-increasing in size. Aligning with our commitment to support the growth of the women’s game domestically and internationally, the prevalence of double-headed matchdays also places considerable pressure on our facilities.

We know, therefore, that we must consider how best to equip and configure our historic Pavilion to ensure it is fit for purpose for decades to come.

As you may be aware from members' forums and our Annual General Meetings, we have already begun to examine our options in relation to Pavilion improvements.

As well as enhancements for players and support staff, these improvements will include upgrades to the Long Room and other member facilities.

We have recently submitted a pre-planning application, and in the next few weeks we will move to the more formal stage of a full planning application.

This does not in any way commit us to the development, but it is an essential next step if we are to move forward and explore the feasibility of our design plans and provide a more detailed financial assessment.

As is the normal process with planning matters, it is likely that this information will appear in the public domain at some point in the early months of next year. We will, of course, provide you with further updates, as we look to progress this hugely important project throughout next year....

.... Best wishes Andy & Lisa