A quartet of “finalists” are in reportedly the running to buy a 49% stake in The Hundred franchise London Spirit.
And while the Ambani family, owners of the Mumbai Indians IPL franchise, are said to have dropped out due to the high valuations, Sanjiv Goenka’s RPSG Group, owner of Lucknow Super Giants, remains in the reckoning.
Sky Sports, quoting insiders, reports that London Spirit is expected to be valued at about £140 million ($173m), meaning the proceeds to be received and distributed by the England and Wales Cricket Board (ECB) would be approximately £70m ($86.5m).
Per Sky Sports, the other three contenders that have been shortlisted to acquire 49% of the Lord’s-based team from the ECB are:
1. A vehicle controlled by Todd Boehly, a shareholder in Chelsea
2. Members of the Manchester United-owning Glazer family.
3. A consortium of technology company owners and financiers which includes the bosses of Google and Microsoft.
About the tech consortium bid, which per Bloomberg is led by Nikesh Arora, CEO of Palo Alto Networks Inc, and Satyan Gajwani, vice chairman of Times Internet Ltd, also includes Alphabet Inc CEO Sundar Pichai, Microsoft CEO Satya Nadella, Adobe CEO Shantanu Narayen, and Egon Durban, co-CEO of Silver Lake Management LLC.
Sky News further reports that the four bidders would be asked to submit sealed bids next week, with the highest bidder expected to be chosen by the ECB.
As for the Ambanis, they are reportedly pursuing bids for the Oval Invincibles and Manchester Originals teams. It bears noting that UK’s City AM had earlier reported that the Ambanis were leading the race with a bidding war chest exceeding £100m, “forcing other bidders to look elsewhere”.
Meanwhile, per Sky News, shortlists for some of the eight Hundred franchises number fewer than four bidders, although the process has been complicated by the presence of some parties in several processes.
RPSG, for example, are said to have been in pursuit of four of the eight teams.
In total, the ECB has indicated that it could receive in the region of £350m for its 49% stakes in the eight teams.
The host counties are also allowed to sell their 51% shareholdings, although some have said they do not intend to do so.
The MCC, which controls the London Spirit franchise, does not intend to offload any of its stake at this point, according to cricket insiders.
Sky News revealed earlier this month that the consortium of tech company chiefs was also bidding for the Oval Invincibles, with them also expected to be shortlisted in that process.
CVC Capital Partners, the buyout firm which has made a swathe of sports investments, has also tabled an offer for the Oval-based team.
Investors will only be allowed to own a stake in one of the eight teams, which also include Welsh Fire, Southern Brave and the Northern Superchargers.
A bigger-than-expected windfall from the process could offer a financial lifeline to a number of cash-strapped counties, with part of the proceeds likely to be used to pay down debt.
The Hundred will enter its fifth season in 2025, with ticket sales to commence soon.
Participating eight teams
London Spirit (Lord’s)
Oval Invincibles (The Kia Oval)
Manchester Originals (Emirates Old Trafford)
Birmingham Phoenix (Edgbaston)
Northern Superchargers (Headingley)
Southern Brave (Utilita Bowl)
Trent Rockets (Trent Bridge)
Welsh Fire (Sophia Gardens)
Bidding process
The ECB initiated a process in September to invite private investment into The Hundred’s eight teams. This move aims to bolster the sport’s financial health domestically. Managed by Raine Group, the auction is attracting significant interest, particularly for the London-based teams. London Spirit, playing at the iconic Lord’s Cricket Ground, is especially appealing to investors.
The ECB currently seeks to sell a 49% stake in each team, with the option for full ownership.
The Hundred’s annual revenue from various streams is approximately £60m ($73.3m). For context, it is worth noting that among franchise based cricket leagues, the Indian Premier League clocks $1.14 billion, followed, at a distant second, by Australia’s Big Bash League, with $178.8m.
