The Hundred Franchise Sales Delayed Due to Investor Concerns

The England & Wales Cricket Board (ECB) has extended the deadline for closing the £520 million sales deal for The Hundred franchises. This delay comes in response to concerns raised by buyers of the two London franchises, according to reports from the Telegraph.

Reliance Industries, a leading conglomerate owned by the Ambani family from India, purchased the Oval Invincibles for £123 million. Meanwhile, an American-led consortium called Cricket Investor Holdings acquired the London Spirit for £295 million. Both buyers have voiced their concerns over the Participation Agreement associated with the franchises, prompting the ECB to address these issues promptly.

One of the steps being taken by ECB CEO Richard Gould includes traveling to India to have discussions with Reliance Industries. The deadline extension for finalizing this deal will now last an additional eight weeks, giving stakeholders time until after Easter to sort out the disputed matters.

Approximately half of the potential buyers are ready to sign the agreement. However, the hesitation from the London franchise buyers has created a bottleneck, affecting related television deals, sponsorship agreements, and governance matters concerning The Hundred. In response, the ECB has hired top legal experts from Latham & Watkins to negotiate with the bidders and alleviate their concerns.

A significant point of contention involves future television rights. The current rights, held by Sky Network, are effective through 2028. The ECB aims to maintain control over the TV rights post-2028, intending to sell them as package deals. Nevertheless, there’s a challenge from the franchise owners who question why these rights cannot be unbundled before the new term commences.

Looking ahead, the scheduling of matches poses potential conflicts, especially in 2028 and 2032, when the Summer Olympics will feature cricket once again. Franchise owners seek assurances on how such conflicts will be managed and how their investments will remain secure amidst these challenges. Despite the ongoing disagreements, reports indicate that the deals are progressing and are expected to conclude successfully, with investors focusing on securing fair terms for their investments.