Strictly speaking, this knife was only used on the much-maligned Hundred, but the domestic impact was likely to be severe.
In mid-May, I suggested that the short and long format races had reached a crossroads. Since then, the race has progressed rapidly, accelerated by the Hundred race, which was only held in its fourth season.
Since the invention of the new format, there have been some divisive results. Firstly, the tournament is held in August, which is traditionally held in a longer format. Secondly, the tournament is played for 100 overs per innings, in sets of five, as opposed to the usual 120 overs in six-ball T20 cricket.
Thirdly, of the 18 counties that form the basis of professional cricket in England and Wales, seven, including the MCC at Lord's, have been chosen to host cricket matches in various cities. The teams are nominally franchises, but are essentially owned by the England and Wales Cricket Board, which funds the competition.
The ECB's assessment of the tournament's finances for 2023 shows a loss of $12.3m (£9.7m) in the first two years, which compares with the ECB's claim in the previous year, when, under the leadership of the leaders who launched the tournament, the ECB made a profit of almost $15.2m. The cost implications explain some of the discrepancy.
The ECB needs two-thirds of all countries to support the tournament, and in 2019, the ECB gave them almost $32 million to support the tournament. COVID-19 prevented the tournament from starting until 2021. The ECB claims this funding is a lost cause.
The impact of COVID-19 on Hundred’s ability to achieve its projected financial returns has been accompanied by a negative impact on the financial health of the rest of the country’s gaming sector, with most struggling to recover.
In total, the counties’ long-term debt is estimated to be around $280 million. Revenue is needed to service the debt. This need, coupled with rising operating costs, has reduced the profitability of most counties. In 2022-2023, nine of the 18 counties reported losses and six reported small profits.
It is in this context that the Hundred's privatisation proposal must be considered, in which the ECB would give investors 49 per cent of the competition, with the remaining 51 per cent held by the eight teams in the Hundred. They can decide whether to keep, sell all or part of it, with the process being supervised by the ECB.
A share of the ECB’s asset sales will be distributed to non-franchising counties, while 10 per cent will be allocated to recreational games. Understandably, the prospect of generosity coming into the game is appealing to those who have long struggled to keep their counties afloat.
The sale period is set for three months from mid-September, after the end of this year's publication. There is talk of uncertainty among potential investors about what they will be buying. If investors buy a 49 percent stake from the ECB, who will own that 51 percent? How will that relationship work? And how will the costs and revenues be shared? There are many variables and potential outcomes to consider in the complex negotiations that will unfold.
In Hampshire, the likely outcome seemed decided before the game even started. In 2001, on the verge of bankruptcy, Hampshire County Cricket Club was rescued by local businessman Rod Bransgrove. HCCC moved to a new ground and changed from being a members club to a private limited company.
Over the years, the area has been developed into hotels, golf courses, leisure and hospitality facilities. Now, the entire development is set to be acquired by the GMR Group, which owns 50 per cent of the Indian Premier League franchise Delhi Capitals.
Bransgrove owns about a 60 percent stake in the company that owns HCCC. The development on the ground is being financed with debt and support from local governments. The use of state money has drawn resistance in the past. It is thought that the rumored $152 million GMR will pay includes repayment of these and other loans in full or in part.
GMR's purchase of a 49 per cent stake in the Southern Braves will see the Hundred take full ownership of the club, which includes the men's and women's teams based in Southampton. The deal is subject to ECB approval, and it remains to be seen whether the 49 per cent stake in the Southern Braves will be sold to GMR, and if so, for what price.
This is undoubtedly a landmark deal for cricket in England and Wales. It is another significant step in radically changing the landscape of cricket, and not just in terms of The Hundred. It breaks with the long-established conventions of professional cricket.
There are only two members-only county clubs, Darham and Northamptonshire, which currently have no Hundred teams. Those who run the seven franchises apart from Hampshire are in touch with their members. It is understood that there are discussions about dissolution, particularly at Yorkshire County Cricket Club, which is deeply in debt.
One threat that has become apparent to The Hundred over the past two weeks is the level of competition that other franchises face. There is some overlap with the Major Cricket League in the United States and the Global T20 in Canada, with some players choosing to play the entire tournament or just parts of it in North America.
Money is of the essence, and Hundred’s promoters need to move fast if they are to put themselves in the best position to attract top players to all their tournaments.
The rise of franchise ownership by Indian interests is evident in the global landscape of cricket. These franchises bring the investment that some in English cricket want. They also raise fears among many about how the culture and structure of provincial cricket will be affected.
The resistance to The Hundred’s sale has been seen as relatively muted compared to other radical groups, largely because few in power are willing to let go of this investment opportunity.
