Importance Score: 55 / 100 🔵
Deadline Extension for The Hundred Franchise Investment Deal
London – Prospective investors in The Hundred, English cricket’s innovative eight-team franchise league, have been granted an extension to finalize deals. These agreements are poised to inject at least £520 million into the sport, but the deadline has been shifted after concerns were raised by four parties regarding the terms of the arrangement with the England and Wales Cricket Board (ECB).
Concerns Delay Franchise Agreement
The initial eight-week exclusivity period, agreed upon with the ECB at the beginning of February, was expected to see contracts signed. However, this period has now elapsed without finalized agreements. Despite this delay, all parties involved are optimistic that an accord will be reached by the revised deadline, set for the end of April.
Key Investors Express Reservations
Reliance Industries, set to acquire a 49% stake in Oval Invincibles, and Cricket Investor Holdings, the American tech group partnering with the MCC to manage London Spirit at Lord’s, have both voiced apprehensions regarding the participation agreement. This contract outlines the terms for new investors with the ECB. Sources indicate that the Indian buyers of Manchester Originals and Northern Superchargers have also questioned aspects of the contract, prompting the ECB to agree to the deadline extension. Critically, none of the eight new franchise owners intend to sign until unanimous agreement is achieved.
Stumbling Blocks and TV Rights
Sources from the ECB, existing Hundred franchises, and investor representatives remain confident that an agreement will eventually be reached. However, several issues need resolution. A primary impediment concerns control over The Hundred’s next TV rights deal. Many new investors reportedly seek to assume responsibility for selling these rights and retaining the revenue, a departure from the ECB’s current approach.
ECB’s Stance on Media Rights
Currently, The Hundred is integrated into the ECB’s exclusive domestic rights agreement with Sky Sports. This comprehensive deal encompasses all of England’s men’s and women’s home international matches. The governing body aims to maintain the prerogative to sell a bundled rights package for the 2028-2032 cycle. Conversely, several new owners have questioned why The Hundred’s TV rights cannot be independently sold to the highest bidder, mirroring the prevalent practice for cricket rights deals in India.
Reliance’s Media Rights Interests
Oval Invincibles’ new collaborator, Reliance, owned by the Ambanis, a prominent Indian family, possesses a significant interest in media rights. This stems from their joint venture with Disney and ownership of Jio, a telecoms firm that offers free streaming of IPL matches to its Indian subscribers. Enhancing the value of The Hundred’s international TV rights is crucial for new owners to recoup their projected £520 million investment. Given their expertise in this domain, Reliance and Cricket Investor Holdings are particularly keen to secure control over these rights.
Potential Impact on Sky Partnership
Separating the rights portfolio could have ramifications for the ECB’s long-standing relationship with Sky Sports, which currently pays £220 million annually for exclusive live coverage of the English cricket season. Such a move could potentially decrease the overall value of the TV rights contract for English cricket.