MCC have this week met the six candidates ready to buy a stake in the Hundred’s most highly-prized team – Lord’s-based London Spirit – with groups involving the Manchester United and Chelsea owners doing battle with Formula One’s rulers.
Investors including United supremo Avram Glazer and Chelsea co-owner Todd Boehly, will do battle with F1 owners Liberty plus three IPL teams.
Meetings are taking place this week and next between would-be buyers and the host counties of the Hundred teams as the process of selling stakes in each of the eight franchises enters its second phase.
The ECB is selling 49 per cent of each team and sharing the proceeds between the recreational game (which takes 10 per cent), the 18 first-class counties and MCC. The remaining 51 per cent is gifted to the host county, who can retain or sell as much of that share as they would like (with 80 per cent of the proceeds staying with them, and the rest shared across the game). The ECB are hoping to raise a bare minimum of £350 million for the 49 per cent stakes, it is understood.
Around 15 investors remain in contention, the majority of whom have bid on multiple franchises. There are thought to be around 35 bids in total at this stage. Telegraph Sport reported last month that the first round of bidding (which was non-binding and therefore exploratory to some degree) had led to a total valuation of more than £650 million for 100 per cent of the eight franchises.
While London Spirit is likely to go for the highest price, a series of investors are gathering around the likes of Cardiff-based Welsh Fire (which was expected to be the cheapest franchise), Leeds-based Northern Superchargers and Nottingham-based Trent Rockets in the belief that they offer better value.
Representatives of Marylebone Cricket Club, the owners of Lord’s and therefore London Spirit, have held meetings with six would-be investors, having ruled out a series of first-round offers and seen their membership approve the club’s involvement in the process at a Special General Meeting.
The six remaining in contention for Lord’s are understood to be:
1 Lancer Capital, where United co-chairman Avram Glazer serves as chairman
2 Cain International, led by Chelsea director Jonathan Goldstein and backed by the club’s joint-owner Boehly
3 Asia’s richest family, the Ambanis, who own IPL franchise Mumbai Indians
4 The owners of Chennai Super Kings
5 Sanjiv Goenka, the Indian billionaire who owns Lucknow Super Giants
6 Liberty Media, which owns Formula One (which it bought for $8 billion in 2017) and MotoGP (which it bought for £3.6 billion this year)
Most of these groups have met with other counties. Surrey are holding seven meetings over the future of Oval Invincibles, including with Lancer and the Ambanis. Surrey are also meeting with private investment firms CVC Capital partners and Ares. Surrey appear steadfast in their position that they wish to retain the 51 per cent stake in the Hundred team that the England and Wales Cricket Board are gifting each host county. That would probably mean they are likelier to partner with a private investment firm than an IPL franchise, who would seek to control the cricket.
Another county in a similar position are Warwickshire, who have close ties with CVC through their chairman Mark McCafferty, the former chief executive of Premiership Rugby and adviser to CVC. Sky News reported that McCafferty had formally declared a potential conflict of interest to the ECB and Warwickshire boards before the sales process began.
Warwickshire, like Surrey, intend to cling onto their 51 per cent, which is likely to reduce the amount the ECB’s 49 per cent sells for. This raises a possible flaw in the system, where the interests of the hosts (who want the right partner for their team) are at cross-purposes with the interests of the wider game, which is keen to maximise the amount it takes.
IPL franchises appear to be circling around Manchester Originals, Northern Superchargers, Trent Rockets and Welsh Fire. Kolkata Knight Riders, Sunrisers Hyderabad and Rajasthan Royals are all among the 15 remaining bidders, as are Capri Global, who own UP Warriorz in the Women’s Premier League. Also thought to remain in contention is Sanjay Govil, the American entrepreneur who owns Washington Freedom in Major League
GMR Group, the co-owners of Delhi Capitals, recently acquired Hampshire and the Utilita Bowl, and are expected to invest further in Southern Brave.
Earlier this week, Dame Caroline Dinenage MP, chair of the cross-parliamentary Culture, Media and Sport Committee wrote to Richard Gould, the chief executive of the ECB, posing a series of questions about the sales process, which is being supported by Raine and Deloitte. Gould has until Nov 28 to respond to their questions, which include: “Can you clarify what steps you are taking to assess the suitability of prospective investors – are you using a fit and proper test and what criteria are you using?”
