Private investment into the Hundred may not be finalised by next year if the right bids and suitors are not found, according to Vikram Banerjee, director of business operations at the England & Wales Cricket Board, and the man tasked with selling off stakes in The Hundred franchises.
The ECB announced at the start of September that they had officially opened the process to secure private investment into the eight Hundred teams. Though the initial plan was to have sales ratified ahead of the 2025 edition of the tournament, the process could roll on to find appropriate valuations and owners.
Each of the eight hosting counties are set to be given a 51 percent stake, which they can hold or sell, with the remaining 49 percent in each side available to be sold by the ECB. Any money raised from that 49 percent will then be distributed between first-class counties, Marylebone Cricket Club and the recreational game. Financial advisers Deloitte and Raine Group have been recruited to ensure fair market value, with legal co-counsel provided by Latham & Watkins and Onside Law LLP.
Though the ECB are collaborating with host venues to assess the suitability of prospective partners, they are doing so with vigilance. A report in City AM on Tuesday stated the governing body have warned Hampshire they will be stripped of their stake in Southern Brave if their prospective new buyers GMR Group - owners of IPL side Delhi Capital - do not pay a fair market price for the Hundred franchise.
The Telegraph reported in August that GMR Group had agreed a £120 million deal to buy Hampshire, which could see them pocket the 51 percent gifted to the county as part of that deal. If that were the case, investors could view purchasing counties outright as a cheaper gateway into the competition, although that would first require a process of demutualisation by the member-owned clubs concerned, with Hampshire and Durham the only exceptions at present.
Yorkshire, who host Northern Superchargers at Headingley and are subject to a bid from Sun Group, who own Sunrisers Hyderabad, are currently seeking to undergo a process of demutualisation, with a super-majority of 75 percent in favour required from at least 50 percent of the club's 6,000 members.
The ECB are understood to have had promising conversations with investors throughout the summer. A number from India and from further afield, including the US, were entertained at Hundred matches this season. As well as capital, the ECB want buyers to bring their expertise to the table, particularly around global engagement, sporting operations and in-ground experience.
While the plan remains to announce investments into the Hundred in early 2025, Banerjee explained that the onus on finding the right price and partner for the teams lends itself to a longer, more drawn-out process.
"The most important thing is we get the right partners," Banerjee told the Business of Sport podcast. "If that takes a bit of time, that takes a bit of time. I think it's fine.
"We have been running for four years and so, if in this first round, we [find that] either the values aren't there for one or all of the teams, or the right partner isn't there for one or all of the teams, it's fine. We'll just carry on running it, we'll do another year. My priority is to get the eight partners and make them amazing and help us grow."
Banerjee did not rule out a partial sale, whereby only some of the teams are under new ownership, though he believes the scale of interest at this stage suggests that will not come to pass.
"I don't think so, at this point of where we are in the process," he said. "You know, the amount of people, the amount of interest, the breadth of interest - there's some really exciting names in there, some of which haven't been leaked to the press, funnily enough."
London Spirit is expected to be the most sought-after component of the Hundred, given the prestige of its host venue Lord's, but Banerjee insisted the ECB would not be rushed into a decision for any of its teams.
"But if we don't get the right partners for [eg] London Spirit, we'll hold it and we'll work with the MCC for another year and try again in a year's time. I think that's possible.
"Having said that, in terms of a timeline on what we're looking for, we are hoping these are done over the next six months, so that whatever this new world looks like for the competition, those deals have transacted by the 2025 season."
Having all investors on board by next summer is integral to ensuring next summer's competition is as seamless as possible, not least ahead of the opening of ticket sales and the player draft, which are expected in February and March, respectively. Though a partial sale of teams is far from ideal, the competition's current media rights - which make up around 80 percent of the revenue for the competition - are fixed until 2028, and the presence of a salary cap should in principle ensure a level playing field for the coming seasons.
Banerjee also revealed any expansion of the number of teams in the Hundred is only likely to take place in 2029. Durham and Somerset were two host venues mooted for an introduction as early as next year to give the competition a greater presence in the North-East and South-West. However, the need to see how the Hundred evolves after investment has shifted the goalposts.
"We've talked about 2029 being the earliest to give us time to bed in and see how this thing grows and there's a whole set of criteria to make sure a) that the player pool is there so it's still best versus best on men's and women's, and b) the competition has grown.
"So an investor today doesn't lose out, but actually benefits from that, as well as the whole game. And then see that, if a venue wants to come in to be a new team, it's ready."