ECB gives counties two-week deadline to accept £500m ‘lifeline’

Counties have been given two weeks to accept proposals from the England and Wales Cricket Board that could raise around £500 million and hand cash-strapped clubs a lifeline.

At a meeting between chairs and chief executives of the 18 counties, MCC and ECB this week the governing body agreed to sell its entire stake in each franchise and split the money across the game, giving up any influence over the future franchises.

Previously, the ECB had planned to sell 30 per cent of its 49 per cent share in each of the eight franchises (the host counties will be handed the other 51 percent). But in order to attract more investors and raise more money for the 18 counties and the game as a whole, the board has agreed to sell its entire share to private business in what will be the biggest shake up of domestic cricket for generations.

The counties have been told to come back with a “non binding” agreement for the board to proceed by May 10, giving a three-week consultation period. The ECB hopes with approval on May 10, it will go to market in September and is expected to contract the Raine Group to handle the sale process. Raine, the New York investment bank, handled the recent sales of Chelsea and Manchester United.

Valuations will be made for each of the eight teams before the process begins. In return for their investment, team owners will receive 80 percent of broadcast, ticket and sponsorship revenue of the Hundred. The ECB believes the next broadcast deal for the Hundred alone could be worth £90 million.

Last year Deloitte valued a ten team franchise competition at £1 billion. By selling 49 percent of eight teams, that figure comes down but insiders are confident the game can net around £500 million, possibly more, from just the ECB sale of its shares alone.

Ten per cent of all proceeds from the ECB sale will go to the recreational game. The ECB will expect potential owners to prove how they intend to grow the game, invest in the future, commit to women’s cricket and engage digitally.

All 18 counties and MCC will receive an equal share of the ECB sale of its equity. The host counties will then have to decide how much of their equity they put up for sale. If they do go to market, ten percent of what they raise will be shared among the  counties and MCC (excusing the host venue which will retain the rest).

The ECB’s plans put the control of the Hundred firmly in the hands of the counties and private investors whereas at the moment it is the board that retains centralised control of the competition.