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    Is Investing in the Hundred a Wise Move for IPL Team Owners?
Is Investing in the Hundred a Wise Move for IPL Team Owners?
Cricket Player in the Hundred. Source: reddit.com

Is Investing in the Hundred a Wise Move for IPL Team Owners?

The England and Wales Cricket Board (ECB) has offered a 49% stake in the eight franchises of The Hundred, raising questions among Indian Premier League (IPL) team owners about the wisdom and profitability of such an investment. Many IPL owners are interested in participating, but are hesitant about being "passive" investors.

As part of the ECB's plan to privatise The Hundred, launched in its fourth season, the eight teams will operate as joint ventures. The ECB's model retains a 51% stake with the eight hosts, which include seven counties and the Marylebone Cricket Club (MCC) for the London Spirit team. The remaining 49% is available to private investors, with the hosts having the option to sell some or all of their stakes before the formal bidding process begins in mid-September.

Several IPL franchise owners have expressed concerns, particularly regarding control and trust—key factors in the success of any joint venture. The head of a successful IPL franchise highlighted that being only a 49% owner raises questions about control, noting that IPL franchises usually enjoy full ownership. He stated that being a passive investor is not appealing, especially if operational and decision-making control isn't guaranteed.

Vikram Banerjee, head of business operations at ECB, acknowledged these concerns during meetings with IPL owners and management in India. He explained that the ECB plans to offer a range of investment opportunities that cater to different investor needs, with more details expected as discussions progress through the end of the year.

Among the eight franchises, the MCC has indicated it might sell part or all of its 51% stake, pending membership approval, while Surrey, owners of the Oval Invincibles, have no plans to divest their stake. ECB Chief Executive Richard Gould did not rule out the possibility of investors eventually owning 100% of a franchise, depending on their financial and operational contributions.

The ECB has clarified that the highest bid will not necessarily win, as they seek partners committed to promoting cricket at all levels. Venky Mysore, CEO of Kolkata Knight Riders, emphasised that the success of a joint venture depends on the "chemistry" between partners, a view shared by other investors who prioritise long-term collaboration.

Not all IPL owners are seeking majority stakes. A CEO from another IPL team mentioned they prefer to start with a smaller stake in a Hundred franchise to understand the business model better and gradually increase their investment over time, provided it proves to be profitable.

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