In a major coup for the England and Wales Cricket Board (ECB), Kolkata Knight Riders (KKR) and Chennai Super Kings (CSK) have pulled out of buying teams in the Hundred. The decision was made by the franchises because they were not convinced by Hundred’s revenue models.
The England Cricket Board planned to sell the Hundred teams and make it a franchise-based league given the success of the Indian Premier League (IPL).. However, no. IPL franchises have already refused to buy teams due to an unattractive business model. KKR and CSK are the new teams to join the list.
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KKR, CSK deal a major blow to The Hundred’s future
While CSK and KKR are still in the race, they are unlikely to take an active part in the process. According to Cricbuzz, some IPL sources are not convinced about the league’s business model. The main issue for investors is the media rights projection shared by the ECB.
Hundred’s value prediction is said to be around £34m a year in the next broadcast cycle of 2029-32. it is considered unrealistic and unfeasible. This is about 16 times more than the current value.
The CSK franchise is considering withdrawing from the tournament. Meanwhile, KKR does not see this as a viable business proposition. “The concerns are being addressed, but they don’t seem too keen on buying the team,” the source claimed.
IPL franchises show no interest in The Hundred
Three IPL franchises – Gujarat Titans, Royal Challengers Bengaluru and Punjab Kings did not show any interest in buying a team in The Hundred from the very beginning and did not participate in the bidding process.
The ECB previously intended to raise around £1bn from the sale of its teams. The third round of negotiations is currently underway and it remains to be seen how successful the committee will be.
What is the process of acquiring a team?
The ECB is also looking for a phased approach to sales that will keep interested parties in the race until the end. Three or four investors will be shortlisted for each team. They will then go to sealed undercover bids with the highest bidder winning ownership of the team.
The rest will be left to fight for other teams. The current plan is to sell one team at a time. “Once the successful bidder is selected, they will enter a period of exclusive negotiations before closing the deal. The deals are likely to close between March and May,” an ECB source said.
According to reports, Mumbai Indians are currently linked with one of the two London teams – London Spirit and Oval Invincibles. Lucknow Super Giants are also believed to be looking for a London team. However, the ECB does not want to sell the London team to the IPL owners.
The eight Hundred teams are Birmingham Phoenix, London Spirit, Manchester Originals, Northern Superchargers, Oval Invincibles, Southern Brave, Trent Rockets and Welsh Fire. Hundreds the next edition of the tournament is likely to have new owners for the teams currently run by eight counties.
