Bidding in the first round of the Hundred auction closes today with the ECB confident that the eight franchises will attract between 60 and 80 bids.
City AM has been told that many of the bidders have put in offers for several Hundred franchises however, which the ECB are encouraging in an attempt to inject greater competition, so the number of investment groups actively involved in the process will be far lower.
The ECB’s projections are based on the fact that around 100 interested parties requested access to their data room after the tender documents were issued last month, although not all of them are expected to bid. The majority of the interest has come from the Indian Premier League, with all of the owners expected to make bids in some form.
The Ambani family who the Mumbai Indians through Reliance Industries have set their sights on the London Spirit, Delhi Capitals are expected to secure Southern Brave after agreeing a £120m deal to buy Hampshire last month, while Kolkota Knight Riders and Chennai Super Kings are both believed to want a stake in Manchester Originals. Lucknow Super Giants and Sunrisers Hyderabad are also expected to make strong bids, but the interest from Rajasthan Royals and Punjab Kings is thought to be more lukewarm.
ECB valuations key
The ECB are attempting to sell 49 per cent of the eight franchises to private investors in a process it hopes will raise between £400m and £500m, with the remaining 51 per cent to be given to the host counties. The county clubs can then decide for themselves whether to sell all or part of that share to raise more revenue, or retain a controlling interest, which county champions Surrey have said they will do.
American bank the Raine Group are handling the sale for the ECB and have marketed heavily to investors in the United States and sports franchise owners such as Wrexham’s Hollywood stars Ryan Reynolds and Rob McElhenney, although the level of interest from across the Atlantic is unclear.
Raine Group’s financial projections for the Hundred’s future growth have been heavily criticised, with former IPL chairman Lalit Modi describing the process as “a big fat Ponzi scheme” last month. “The numbers put in document are definitely not achievable,” Modi wrote in a devastating take-down on X.
The ECB are running the auction as a three-round process with final-round bids due by Christmas in the hope of concluding sales before the start of next season. Sales will only be completed if the ECB’s valuations of the eight Hundred franchises are met however, with chief executive Richard Gould saying this week they may not all be sold before next summer.
“We’re pretty fluid in terms of timescale,” said Gould. “There isn’t a hard stop. Some deals will progress faster than others. If they are not all in place by next summer that’s fine. We may choose not to sell them all at the same time.”