For years, foreign investors have shown keen interest in English football. Now, they are turning their attention towards another quintessentially English sport – cricket. Recent auctions for franchises in a tournament known as The Hundred have drawn investors from India, Silicon Valley, and New York. This competition, similar to the successful Indian Premier League, features vibrant uniforms and dramatic player entrances akin to NFL games. The tournament was introduced four years ago to attract younger audiences and more female fans, offering both men’s and women’s teams for each franchise.
With the auction of eight franchises currently underway, English cricket – facing financial challenges exacerbated by the pandemic – is poised to generate over 500 million pounds ($620 million) from the sale of teams with modern American-style monikers competing at renowned cricket venues worldwide. Notably, a tech billionaire consortium has made headlines by acquiring a 49% share in the London Spirit for a reported 145 million pounds ($180 million), which includes Google’s CEO Sundar Pichai and Microsoft’s CEO Satya Nadella among its members.
In addition to Indian interest in the teams, U.S.-based investors are also joining the fray. Knighthead Capital Management, which boasts NFL legend Tom Brady among its investors, has secured a 49% stake in the Birmingham Phoenix for a reported 40 million pounds ($50 million). This group is already the owner of the Birmingham City soccer club. Tom Wagner, co-founder of Knighthead, sees The Hundred as a significant growth opportunity for investors. One major advantage for American investors is that there is no relegation system in The Hundred, alleviating concerns about teams being relegated from the top-flight due to poor performance.
The auction of franchises for The Hundred is a strategic move by the England and Wales Cricket Board to raise substantial funds by selling shares in the eight participating teams – London Spirit, Oval Invincibles, Southern Brave, Birmingham Phoenix, Manchester Originals, Welsh Fire, Northern Superchargers, and Trent Rockets. Investors can acquire a minimum 49% stake in these franchises, currently owned by affiliated counties, which may choose to sell part or all of their remaining 51% stake if desired. Initially targeting 350 million pounds ($435 million) from the auction, the ECB is expected to surpass this goal comfortably, bolstered by the significant deal for the London Spirit.
The buyers of these teams have predominantly hailed from India and North America. Notable investors include a Silicon Valley consortium, Knighthead Capital, and Sanjay Govil, an Indian-American tech entrepreneur from Washington DC who also owns Washington Freedom in Major League Cricket. Indian investors from the IPL have also made significant purchases, with the Sun Group, owner of Sunrisers Hyderabad, acquiring the entire stake of Northern Superchargers and Reliance Industries securing a 49% stake in the Oval Invincibles.
RPSG, the owner of Lucknow Super Giants, has acquired Industries Limited, the owner of Mumbai Indians, for a reported 60 million pounds ($75 million) and 70% ownership of the Manchester Originals for a reported 81 million pounds ($100 million). The potential for GMR Global Pte Ltd, a part-owner of Delhi Capitals, to secure a portion of Southern Brave is high due to their existing strategic partnership with Hampshire, the team associated with the Brave. Notably, a stake in the Nottingham-based Trent Rockets remains unsold at this time, with the expectation of a sale in the near future.
The proceeds from these transactions will be distributed among 19 entities, including the 18 well-established county teams in English and Welsh cricket and the prestigious Marylebone Cricket Club, known for its ownership of the historic Lord’s ground and its role as the custodian of cricket laws. Additionally, a significant contribution will be allocated to support grassroots cricket in England and Wales.
Looking ahead to the 2025 edition of The Hundred, investors will engage in an exclusive eight-week period to finalize their partnerships with the respective franchises. This exclusivity period suggests that there are unlikely to be substantial alterations to the upcoming 2025 tournament scheduled from August 5 to 31. However, the impact of these ownership changes may begin to manifest in the 2026 season, potentially leading to modifications such as alterations to team names among other possibilities. The Hundred, which commenced in 2021, continues to evolve in the world of cricket.
