100 privatization nears after countries give ECB green light

The hundred has sparked controversy, but gives districts a chance for a huge financial stimulus. Photo: Getty Images/Gareth Copley

Counties give England and Wales cricket team the green light to continue the «direction of travel» for private investment in the Hundred, but non-hosting venues delve into questions that remain unanswered.< /p>

Two weeks ago the ECB asked the 18 top-tier countries and the MCC to submit a «non-binding» position on the capital allocation model it has developed for private investment in the eight teams participating in the competition, which it hopes will happen later this year.

Although this was not a formal vote, 15 out of 19 had to give a positive answer. This obstacle was cleared on Friday.

The model assumes that the ECB hands over 51 per cent of the eight teams to the host nation (or club, in the case of MCC at Lord's). The remaining 49 percent will be sold by the ECB to private investors, with the host country free to sell as much or as little of its share as it wishes.

Proceeds from the 49 percent sold will be divided as follows: the first 10 percent will go toward the recreational game and the rest will be divided among the districts. The first £275 million raised will be split between the 19 participants, with the next £150 million split between the 11 non-host players. All revenues in excess of £425 million will again be divided among 19 people.

Earnings from the 51 percent will be divided as follows: the first 10 percent will go to recreational gaming, the next 80 percent will go to the host county, and the final 10 percent is divided into the remaining 18.

The model up for sale was created in collaboration with Deloitte, but the split has unsurprisingly caused a rift among host and non-host companies. The owners say they bear all the risk because they have to manage and finance the teams in collusion with their new partners. Non-host countries are desperate for further clarity on their position on a number of fronts.

On Monday, 11 non-host countries wrote to the ECB with their concerns, saying that while «we do not want to slow down process,” they “unfortunately cannot agree on the direction of movement at this stage.”

That position appears to have changed this week. Sources suggested they were going to give the ECB the green light to proceed, but would present a united front by asking for more information on a number of issues and seeking independent advice.

There is consensus that private participation in the tournament is desirable investment, but details need to be agreed on both the capital share and other important issues such as future expansion. “Yes, but with big reservations,” is how two sources described the non-hosts’ position to Telegraph Sport.

In their email on Monday, the non-hosts asked the ECB for £200,000 to pass the legislation. The firm received specific advice and recommendations, but the ECB refused them on the grounds that Ernst and Young were already busy compiling a report on the work Deloitte had done with the governing body in recent months. It is assumed that 11 non-hosts will begin using this consultation at their own expense.

In a response from the governing body seen by Telegraph Sport, chief executive Richard Gould said: “Neither the current owners nor the current non-owners are particularly enamored with the capital structure of the deal. Both sides want more, hence the compromise and fair model proposed by the ECB. I don't feel either side is willing to give up more value, and both would like more.»

Some districts — 15 of which are currently member-owned — are engaging gently with their members on issues that matter. value, but do not intend to give them an official word.

The sale will be managed by Raine, the New York bank that has helped sell Manchester United and Chelsea in recent years. It is clear that there is interest in investing in teams from firms in India (including most IPL franchises), Pakistan, the US and the UK.

MCCs, which are different from the rest in that they do not currently have professional team, we were committed to formally engaging our members in the coming months, but were happy to continue at this stage.