- CA to allocate AUS$400m to repair budget and re-invest in grassroots cricket
- Federation recommended conducting sales to benefit from growing investor interest in franchise cricket
- The Hundred raised UK£520m from auction process
Cricket Australia (CA) forecasts it could earn between AUS$600 million (US$393.7 million) and AUS$800 million (US$524.9 million) from the potential sale of stakes in its Big Bash League (BBL) franchises.
CA and its state federations have co-owned the Australian domestic Twenty20 cricket competition since its launch in 2011. However, on July, it was reported that the sale of minority stakes in all eight BBL teams had been recommended to the national cricket body and the six states by management consultancy Boston Consulting Group (BCG), in order to benefit from growing investor interest in franchise cricket leagues.
According to a new report from The Agea likely plan will see CA sell 49 per cent of six clubs, with one each of the two Melbourne and Sydney-based outfits to be sold off entirely.
The potential sale would not only enable BBL teams to pay more competitive salaries for top talents, but it would also provide welcome funding for grassroots cricket. The Age reports that up to AUS$400 million (US$262.5 million) from the total raised would be allocated towards repairing CA’s budget and towards lower levels of the game around Australia.
Around AUS$100 million (US$65.6 million) would be allocated to improving CA’s finances, with the organisation declaring six consecutive years of budget deficits. The federation would also invest a further AUS$100 million into the BBL itself, which would cover increased player payments and enhanced marketing for the league.
In addition, CA and the states would allocate AUS$50 million (US$32.8 million) and AUS$60 million (US$39.4 million) for investing into grassroots cricket across the country. About AUS$150 million (US$98.4 million) would be set aside for a ‘future fund’ which would act as financial reserves ahead of CA’s next domestic broadcast deal.
Key leaders at CA have made the case for welcoming private investment into the BBL, arguing that the funds raised would help create lasting improvements to Australian cricket.
However, the states have been more hesitant about a sale. According to The Age, one possible sticking point among the sextet is the distribution of funds from the respective sales of the two BBL teams in Melbourne and Sydney, with Cricket Victoria (CV) and Cricket New South Wales (CNSW) reportedly seeking a larger proportion.
Should another state opt to sell the entirety of their BBL club, it would potentially further complicate the distribution model.
The potential BBL team stake sales comes after the England and Wales Cricket Board (ECB) concluded the sale process for equity in The Hundred’s teams. The auction process raised UK£520 million (US$689.6 million), with the league’s clubs valued at a combined value of close to UK£1 billion (US$1.33 billion).
