Several top-tier IPL franchises, such as Chennai Super Kings (CSK), Mumbai Indians (MI), Kolkata Knight Riders (KKR), and Sunrisers Hyderabad (SRH), have shown interest in bidding for a stake in ECB’s The Hundred teams.
Friday, October 18, marked the deadline for submitting first-round bids, and most of those who have officially expressed interest are Indian investors, particularly IPL franchises.
As per the Cricbuzz report, Chennai Super Kings, Sunrisers Hyderabad, Lucknow Super Giants, Mumbai Indians, Kolkata Knight Riders, and Delhi Capitals have all placed bids.
While there has been no formal confirmation, it is thought that the Rajasthan Royals, as well as the UP Warriorz, a Women's Premier League (WPL) franchise owned by the Dubai-based Capri Global Group, have both made bids.
Avram Glazer's Lancer Capitals, Manchester United's co-owner and ILT20 team operators, are also said to have bid. Interestingly, Royal Challengers Bengaluru, owned by British business Diageo, did not submit a bid, as did Punjab Kings, who also declined the possibility of owning a team in the English league.
There is no confirmation yet on whether Gujarat Titans are taking part in the bidding, but CVC Capital, the owners of the Ahmedabad franchise, do have an office in the UK. The Indian officials of CVC are unaware if the UK office has placed a bid.
This is just the first round of bidding and there is no need for the investors to pick the team in which they want a stake. That decision will be made in the second, more serious phase, which, according to the ECB, may take place after the IPL auction. Commercial conversations are also expected in the second phase, with insiders saying that the ECB is looking for a franchise valuation of 75 million to 100 million pounds.
As per the Information Memorandum (IM), shared by the ECB, the English board currently owns 100 percent of The Hundred competition and all its teams. It will "sell at least 49 percent of each of the eight teams to new investors with the vision, experience, and capabilities to propel The Hundred to new heights."
Investors interested in owning a stake in a team may need to spend between £40 million and £50 million to acquire a 49 percent ownership in one of the teams. The valuation will be brought up during the second round of bidding.
The remaining 51% will remain with the counties affiliated with each team, making the new investors partners in a joint venture with the appropriate county. Investors can also purchase a portion or all of the county's 51%.
The relevant part of the IM says, "ECB then plans to gift its remaining stake in each of the teams to their respective hosts, creating a lasting partnership between new investors and some of the world's iconic cricket institutions. As a part of this process, hosts will also have the option to sell a portion of their equity in the teams to the new investors to provide a path to a control position."
(Cricbuzz report)
