All eight Hundred owners are expected to explore bids for franchises in Australia’s Big Bash after teams in the T20 cricket competition were put on the market this week, City AM has learned.
Cricket Australia this week announced that it would push ahead with a franchise sale, similar to the 2025 Hundred auction, despite some internal opposition.
It means teams – such as the Melbourne Renegades – could be transferred entirely to private ownership, while the likes of the Hobart Hurricanes will look to sell a smaller stake in the Tasmanian team.
All Hundred owners are expected to join Indian Premier League owners in assessing whether to bid for one of the eight Australian teams, people close to the sales process said.
Cricket Australia can also expect bids from a growing number of private equity firms interested in the country after EQT’s entry into rugby league’s Melbourne Storm, while the increasing volume of active high-net-worth individuals Down Under may also spy an opportunity.
The move opens the door for the major players in the IPL to add an Australian franchise to growing multi-club organisations – the mega-rich Ambani family has stakes in or owns Mumbai Indians and sister teams in South Africa, England and the Caribbean. And it follows a decision from the IPL to play one of its matches in Australia next year.
Big Bash a hot topic?
Sport investors insist there remains a market for cricket within Australia despite domestic admiration for rugby league’s NRL and Aussie Rules football, while dealmakers believe that short-term growth headroom exists in cricket in a way that doesn’t exist in the likes of the Premier League.
It is thought unlikely that Premier League owners will be prominent in bidding for BBL franchises, despite Chelsea co-owner Todd Boehly’s stake in Trent Rockets and previous IPL interest from Manchester United’s Glazer family. CVC Capital Partners and Diageo recently exited Indian cricket in mammoth deals that saw healthy returns on investment.
“The issue for Premier League owners is what they’re actually buying,” Professor Rob Wilson told City AM. “These are investors accustomed to owning and controlling major sporting assets, whereas in the BBL a significant amount of the commercial and sporting control remains tricky.
“Add in the competition for players from other leagues, the relatively limited international footprint of the BBL and the execution risk around growing revenues, and it becomes a much less obvious strategic investment.
“For owners already looking at other sports properties, The Hundred offered a bridge into a huge UK and global market.”