In a major blow to the England and Wales Cricket Board (ECB), Kolkata Knight Riders (KKR) and Chennai Super Kings (CSK) have pulled out of acquiring Hundred teams. The decision was made by the franchises because they were not convinced by Hundred’s revenue models.
England Cricket Board was planning to sell the Hundred teams and convert them into a franchise-based league given the success of the Indian Premier League (IPL).. However, a no. of IPL franchises have already refused to buy teams due to the unattractive business model. KKR and CSK are the teams that have recently joined the list.
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KKR and CSK deal a serious blow to the future of The Hundred
Although CSK and KKR are still in the race, it is unlikely that they will actively participate in the process. According to Cricbuzz, some IPL sources are not convinced about the league’s business model. The main problem for investors is the projection of press rights shared by the ECB.
The prediction of Hundred’s value, reportedly around £34m a year in the next broadcast cycle of 2029-32, is considered unrealistic and unviable.. It is approximately 16 times the current value.
The CSK franchise is considering withdrawing from the tournament. Meanwhile, KKR does not see it as a viable business proposition. “Concerns are being addressed, but they don’t seem very happy about purchasing a team,” a source said.
IPL franchises show no interest in The Hundred
Three IPL franchises – Gujarat Titans, Royal Challengers Bengaluru and Punjab Kings did not show any interest in buying a team in The Hundred from the beginning and did not participate in the bidding process.
Previously, the ECB aimed to raise around £1 billion from the sale of its equipment. The third round of negotiations is currently underway and it remains to be seen to what extent the board will be successful..
What is the process of acquiring equipment?
The ECB is also seeking a gradual approach to the sale that keeps interested parties in the race until the end. Three or four investors will be selected for each team. They will then opt for sealed bids and the highest bidder will win ownership of the team.
The others will have to compete for the other teams. The plan is to sell one team at a time currently.. “Once the winning bidder is selected, they will enter a period of exclusive negotiations before the deal is closed. The deals are likely to be concluded between March and May,” an ECB source said.
Mumbai Indians are reportedly currently linked to one of two London-based teams – London Spirit and Oval Invincibles. Lucknow Super Giants are also believed to be chasing the London team. However, the ECB is not willing to sell the London team to the IPL owners.
The eight Hundred teams are Birmingham Phoenix, London Spirit, Manchester Originals, Northern Superchargers, Oval Invincibles, Southern Brave, Trent Rockets and Welsh Fire. hundreds The next edition of the tournament is likely to see new owners for the teams currently running the eight counties..
