The eight teams in the Hundred have been valued at more than £650 million after the first round of their sale process, with a Chelsea director, Indian billionaires and the Glazer siblings all declaring firm interest.
The first round of bidding closed on Friday, with sources at the England and Wales Cricket Board – which is leading the sale with the help of advisers Deloitte and the Raine Group – indicating “delight” at the level of demand. More than 100 bids were placed for the eight teams, with some potential investors expressing interest in multiple franchises and others for just one.
The Chelsea director Jonathan Goldstein, India’s richest family the Ambanis and the Glazer siblings are all among potential investors, but the largest known offer is understood to have been tabled by Sanjiv Goenka, the Indian billionaire and entrepreneur owner of the Indian Premier League’s Lucknow Super Giants. Goenka, who is behind the RPSG Group, valued London Spirit, the Lord’s-based team, at an eye-watering £140 million, which is understood to be a good deal more than that placed by the Ambanis, who own Mumbai Indians. Insiders maintain there have been multiple bids in the “£140 million range”, however, and not only for London Spirit.
Oval Invincibles are understood to have also proved sought-after, with one IPL owner known to have tabled a proposal at around £120 million. There is also said by one insider to be a third team in the same ballpark for offers, although other sources claimed the six remaining teams attracted offers of up to £80 million.
American sports owners and private equity firms are involved in the process, as well as the majority of IPL teams.
Goldstein has registered interest with the Raine Group as part of a potential offer that is independent of Chelsea. It is unclear yet which franchise Goldstein wants to invest in, but he is working with partners on a proposal, and has asked for more information on the conditions to go to the second round ahead of a potential bid. Goldstein is a business partner of Chelsea co-owner Todd Boehly and was part of his successful bid to buy the Premier League club, a takeover which was also overseen by Raine. Boehly’s office provided no comment on whether he was part of Goldstein’s bid for the Hundred.
Several of the Glazer siblings, excluding Joel, are also understood to have come forward in recent weeks. The family are also on good terms with Raine, having sold a major stake in Manchester United with it to Ineos last year.
The valuations from the first round are for 100 per cent of the teams. As the process continues, it will become clear exactly how much of each team is up for sale. The ECB will definitely sell 49 per cent of each team, with the proceeds spread across the game, and gift 51 per cent to the host venue, who can keep that stake, or sell some or all of it.
Insiders believe it is increasingly likely that the majority of the eight will sell some of their stake, although Surrey – host county for Oval Invincibles – have previously indicated a strong desire to retain the entirety of their 51 per cent, and control the franchise’s cricket operations. Investors place great stock in owning a majority stake – and therefore overall control – in the teams, so host counties may have their heads turned in the next round of bidding.
The first-round valuation of the eight teams has increased the bullishness at the ECB that a figure north of £500 million is possible just for the 49 per cent stakes, and possibly much more if larger stakes are available.
The ECB and the counties have devised a model to share the proceeds of the sale. The proceeds of the 49 per cent sold would be split as follows:
- the first 10 per cent to the recreational game, with the rest shared by the counties;
- of the counties’ share, the first £275 million shared 19 ways (between the 18 first-class counties and MCC, the owners of Lord’s);
- the next £150 million shared between the 11 non-hosts;
- all proceeds above £425 million shared 19 ways once more.
The proceeds of the 51 per cent would be split as follows:
- the first 10 per cent to the recreational game;
- the next 80 per cent to the host county;
- the final 10 per cent split by the other counties.
Such figures represent a potential lifeline to cash-strapped counties, but the ECB is looking to put tight controls in place for how the money can be spent.
In exchange for their investment, team owners are set to receive around 80 per cent of broadcast, ticket and sponsorship revenue of the Hundred. It is possible that team identities would change, and salaries in both the men’s and women’s competitions are certain to rise.
The process will eventually be quickly broken up into eight separate sales, with a shortlist of suitors drawn up for each individual side. At that point, the potential buyers will spend a month visiting the venues and meeting the counties as the vendors finalise their chosen partners.
New investment will potentially be in place by spring next year, although the ECB has set no hard deadline on completion for the process. It could be that some teams have their investment fully in place for next season, the fifth edition of the tournament, while others do not.
The sale of London Spirit, the most lucrative franchise, could also move the slowest because of MCC. This week it held a special general meeting to vote on whether to accept the ECB’s gift of 51 per cent of London Spirit, with results expected next week.
The Raine Group is also handling the sale of The Daily Telegraph.
