Photo Credit: Instagram Photo of @thehundred
The England and Wales Cricket Board (ECB) is nearing the final stages of attracting up to 100 potential buyers for The Hundred, which is valued at £500 million, ahead of an initial bidding deadline this month.
According to Telegraph Sport, 85 interested parties have already accessed the sale’s “data room,” with another 10 groups in the process of signing non-disclosure agreements. Sources involved in the process highlight strong international interest, dismissing recent criticism from Indian Premier League (IPL) founder Lalit Modi regarding “overly optimistic” projections.
Since the sale of 49% non-controlling stakes in the eight teams began, all IPL owners have, as anticipated, been in contact with dealmakers. However, they only account for about 10% of the overall bidders, with interest extending to the US, Australia, Singapore, and the Middle East.
Advisors Raine Group and Deloitte have informed the ECB that The Hundred’s total value is £1 billion, and there is growing confidence that £500 million can be achieved for all 49% stakes combined. Teams based at Lord’s and the Oval are expected to sell for the highest amounts, potentially attracting up to three times more than other teams.
A “scarcity premium” could further drive prices up in the coming weeks. After the first bids by October 18, the process will split into eight separate sales, with a shortlist of buyers for each team. Potential buyers will then visit venues and meet counties before finalizing partnerships.
In June, Telegraph Sport reported that potential investors include the Glazer family, Ryan Reynolds’ Wrexham group, and Red Bull. Though no specific names are confirmed, sources indicate that high net-worth individuals, sports team owners, sports-specific funds, and Major League Cricket owners are in the mix. IPL and new Indian cricket investors are also part of the growing list.
October 18 marks the end of the first phase, with potential investments expected by next spring, though the ECB has set no strict deadline for completing the process.
Presentations have been sent out, and the data room opened two weeks ago, now accessed by 85 parties, with 15 more expected to show formal interest soon.
Behind the scenes, officials are excited about the high level of interest. Some suggest that Modi’s warnings about overvaluation might be an attempt to help IPL teams buy in at lower prices. “They’re trying to scare the market,” said one source, noting that IPL teams are still showing strong interest. The broad global interest is driven by the future earning potential of international TV rights deals, with ambitions for The Hundred to follow a similar growth trajectory as the IPL since 2009.
The domestic partnership with Sky and the BBC is seen as a valuable asset by potential buyers, with hopes that The Hundred might eventually gain an edge over the IPL due to favorable US broadcasting times.
While most counties welcome the potential financial boost, Essex has raised concerns. GMR Group, which co-owns the IPL’s Delhi Capitals, recently took over Hampshire, but would need to pay extra for Hampshire’s 51% stake in Southern Brave if plans allowing counties to sell their stakes are approved.
Proceeds from any sale will be distributed throughout the county game. The ECB previously rejected a £300 million offer for 75% of the competition from private equity firm Bridgepoint in 2022.
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Name of Author: Cricexec Staff
