As the English and Wales Cricket Board (ECB) proceeds with its intention to sell the Hundred, owners of Indian Premier League (IPL) franchises are indicating a strong desire to purchase teams. The existing ownership scheme, which caps their possible interest at 49%, has many people wary.
In its fourth season of operation, the ECB's privatisation plan for the Hundred included managing the eight teams as joint businesses. The proposed structure would provide the Marylebone Cricket Club (MCC), seven counties, and currently hosts 51 per cent ownership, with the remaining 49 per cent going to private investors.
Potential purchasers have expressed reservations about this concept, especially IPL franchise owners who are used to having complete ownership and control. The head of an IPL-winning franchise highlighted the difficulties with this joint venture strategy.
'Anyone new to this will find it unfamiliar as we are 100% owners of all the other franchise ventures. That has very distinct dynamics. It will be a joint venture in this case. Other concerns arise right away, including those related to valuation, ownership, and operations,' stated the CEO of one IPL.
During his recent visit to India, Vikram Banerjee, the head of commercial operations at the ECB, recognised these concerns. He pointed out that cricket operations and brand management are frequently at the centre of control problems. The ECB responded by introducing some flexibility into the procedure, with certain teams may be willing to offer higher stakes to draw new investors.
'For many of them, it revolves around aspects such as brand. Many of them are passionate about cricket, controlling the sport, and other things, including basic majority stakes from an equity standpoint. We are aware of it and their current situation. Then, we included that into the procedure,' Banerjee stated.
Although many prospective purchasers still find the majority stake problematic, not all are obsessed with control. A willingness to a reduced initial shareholding was stated by an IPL CEO.
The CEO of Kolkata Knight Riders, Venky Mysore, stressed the value of chemistry in successful partnerships. He pointed out that the capacity to collaborate over the long haul is more important than budgetary concerns.
'The Hundred will also have legacy difficulties, just like any other joint venture. 'The current shareholder group has been together for over a century, and now a new investor is joining, and you are cooperating,' Mysore said.
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