All You Need To Know About GMR Group’s Deal With Hampshire
Hampshire announces the deal with GMR Group, becoming the first English county cricket club owned by an overseas investor. Here’s what the deal means in practice. Have Delhi Capitals bought Hampshire? Not exactly. Delhi Capitals is a 50-50 joint venture between the two sports arms of Indian conglomerates JSW Group and GMR Group. GMR had bought the Delhi franchise – then called Delhi Daredevils – before the first season of the IPL in 2008 and sold 50% to JSW in 2018. GMR are the only relevant party in the Hampshire deal. Who are GMR and why have they invested in cricket? The GMR group describe themselves as a leading infrastructure developer who own and manage projects in a number of different areas. They own and run six airports, including Delhi and Hyderabad. GMR says its sports division has the social objective of promoting and nurturing potential talent at the grassroot level in Delhi while the IPL has proved a lucrative investment: having paid US$84 million for the Delhi franchise in 2008, they sold a 50% stake in 2018 for US$66m. Do GMR own any other teams? Yes. GMR are the owners of Dubai Capitals in the UAE’s ILT20, India Capitals in the Legends League Cricket (LLC) and have a stake in Seattle Orcas (MLC). JSW, their IPL co-owners, run Pretoria Capitals in South Africa’s SA20 and the two companies also co-own Delhi Capitals Women in India’s WPL. GMR also owns teams in kabaddi and kho-kho. Has GMR taken over at Hampshire? Hampshire Cricket announced on Monday morning that GMR have bought a majority stake – reported to be 53%-in Hampshire Sport & Leisure Holdings Ltd, with a full buyout to be completed in two years. Rod Bransgrove, chair, and David Mann, chief executive, will stay in place until that two-year period has elapsed. What does this mean for the Hundred? In effect, the ECB began the process of disposing stakes in the eight Hundred teams at the beginning of the month. Under this model, the ECB would sell 49% stakes in every team to private investors and transfer 51% to the host venue or county, which in Southern Brave’s case would be Hampshire. Will GMR become the majority owners of Southern Brave by default? No, it isn’t. The ECB’s sales process contains a clause which allows the ECB the discretion whether or not to sell 51% stakes to hosts. They can decide to hold onto it if they feel that an investor is trying to bypass the wider sale process or buying a franchise up the backstairs. The deal is not dependent on getting a Hundred franchise. But in reality…? The ECB have consulted with every franchise in the IPL and WPL to invest into Hundred teams, and GMR seem very likely to make a bid for the remaining 49% in the sales process of Southern Brave. If GMR’s bid is accepted by the ECB as being at fair market value, Hampshire would then be sold the other 51% and GMR would, therefore, be considered 100% owners of the Hundred franchise. What’s in it for Hampshire? Most obviously, money. Hampshire said in a statement that the deal was designed to strengthen the financial position of their parent company, which also runs the on-site hotel and golf course at the Utilita Bowl. GMR will provide a material injection of capital to reduce the leveraging of the company – in other words, starting to pay off Hampshire’s £60 million debt. Bransgrove said GMR was selected following a rigorous selection process due to its aligned values and commitment to our vision. The Utilita Bowl has awarded the first men’s Ashes Test in 2027, with Bransgrove saying it needed investment to allow Hampshire to remain at the top table. Didn’t Hampshire do something like this previously? Yes. Hampshire were formerly part of a remarkably short-lived tie-in with Rajasthan Royals back in 2010, playing as Hampshire Royals for four years as one of five ‘Royals2020’ teams globally. The arrangement was quietly mothballed after a row between Rajasthan’s owners and the IPL saw the franchise briefly expelled from the competition. What’s Kevin Pietersen got to do with it? Kevin Pietersen played a behind-the-scenes role to try to grease the wheels of the deal as a common link between Bransgrove and GMR’s Kiran Kumar Grandhi. Pietersen played for both Hampshire and Delhi Daredevils (as they were then known) during his playing career. Will Hampshire’s deal be the first of many in county cricket? Maybe, but not straight away. Hampshire are one of only three counties, the others being Durham and Northamptonshire, that are private limited companies rather than member-run mutual ‘societies’, though Yorkshire’s chairman Colin Graves is trying to demutualise the club to unlock the door for private investment. Most of the counties rely on ECB central funding for revenue and therefore might consider private investment as an alternative source. The Sportz Planet Desk,Atharva Shetye
What Is The Hundred And How Is It Changing The Dynamics Of Cricket?
What Is The Hundred? The Hundred is a thrilling 100-ball cricket extravaganza that promises to keep fans on the edge of their seats. This action-packed tournament features world-class players and some of the biggest names in cricket from around the globe. Teams and Format The 100 ball competition showcases eight city-based teams, each with a men’s and women’s squad competing alongside each other over five weeks every English summer. The teams include Birmingham Phoenix (Edgbaston), London Spirit (Lord’s), Manchester Originals (Emirates Old Trafford), Northern Superchargers (Headingley), Oval Invincibles (The Kia Oval), Southern Brave (Utilita Bowl), Trent Rockets (Trent Bridge) and Welsh Fire (Sophia Gardens). Each squad consists of 15 players, with a maximum of four overseas stars and no more than two centrally contracted England players in the Men’s Competition. Player Selection Process The selection of players is an exciting aspect of The Hundred. A Draft system allocates players to each men’s team, ensuring a fair and thrilling selection process. The women’s teams have a bespoke player selection process tailored to their competition’s unique needs, adding another layer of excitement for fans. Unique 100-Ball Format The Hundred introduces a format with 100 balls per innings, where the team scoring the most runs wins. Key features of the format include fielding side changes after every 10 balls, flexible bowling with bowlers delivering either five or 10 consecutive balls as decided by the captain and a maximum of 20 balls per match for each bowler. Each bowling side gets a 90-second strategic timeout, allowing the coach to discuss tactics mid-match. A 25-ball powerplay for each team, with only two fielders allowed outside the initial 30-yard circle, makes the game even more dynamic. Each match lasts approximately two and a half hours, making for a fast-paced and exciting viewing experience. Player Salaries The Hundred sets competitive salary bands to attract top talent. For 2024, the women’s salary bands range from £50,000 for the top two players to £8,000 for three players, ensuring a broad range of compensation. The men’s salary bands for 2024 remain unchanged from 2023, with top players earning £125,000, including one England Centrally Contracted Player, down to £30,000 for three players. Where To Watch The Hundred In India? Enthusiasts can watch The Hundred 2024 on the Sony Sports Network television across different languages. Fans can also live stream The Hundred 2024 on the Sony LIV app and on FanCode. The Hundred offers an unmissable blend of fast-paced action and top-tier cricket, making it a must-watch event every summer. With its unique format and star-studded teams, it is set to revolutionize the way fans experience cricket. Also read about IPL franchise owners showing interests in investing in The Hundred here. The Sportz Planet Desk,Atharva Shetye
IPL Franchise Owners Consider Investment In ECB’s The Hundred Amid Concerns Over Minority Stake
As the England and Wales Cricket Board (ECB) launches the fourth season of The Hundred, discussions around the privatization of the tournament’s eight franchises have intensified. The ECB’s plan involves selling a 49% stake in each team to private investors, while the remaining 51% will be retained by the existing ‘hosts’ – seven counties and the Marylebone Cricket Club (MCC) for London Spirit. Reservations About Minority Stake This proposal has drawn interest from owners of several Indian Premier League (IPL) franchises. However, many express reservations about the minority stake being offered, fearing it could lead to a lack of control over the franchises. Concerns Highlighted by IPL Franchise Official The concerns were highlighted by an official from an IPL-winning franchise, who preferred to remain anonymous. “In all other franchise investments, we are 100% owners. Here, it’s going to be a joint venture. There’s valuation, ownership, and operational matters to consider – these issues come to the fore immediately,” the official said. ECB Acknowledges Investor Concerns Vikram Banerjee, the ECB’s Head of Business Operations, acknowledged these concerns. During his trip to India for IPL 2024, he met with various franchise owners to discuss the proposed model. “For a number of them, it’s around things like brand, control of cricket operations, and majority stakes from an equity perspective,” Banerjee explained. “We understand where they are at and have built that into the process.“ MCC and Surrey’s Stance on Stake Divestment Among the eight franchises, the MCC has stated it will consider selling part or all of its 51% stake, pending approval from its members. In contrast, Surrey, the owners of the Oval Invincibles, have declared no intention to divest any of their stake. Possibility of 100% Ownership Richard Gould, the ECB’s Chief Executive, did not rule out the possibility of investors acquiring a 100% stake, provided they meet various criteria. “There’s certainly the opportunity for people to have, potentially, 100% ownership,” Gould stated. “It depends on the capabilities they bring in terms of finance and operational delivery.“ Importance of Chemistry in Joint Ventures Venky Mysore, CEO of Kolkata Knight Riders (KKR), emphasized the importance of chemistry between investors and existing stakeholders. “Ultimately in any joint venture, it boils down to the chemistry recipe,” Mysore said. “The existing shareholder group has existed for 100-plus years, and suddenly, you have a new investor coming in. Can you work together? Because this is for the long run.“ Open Approach to Minority Stake A couple of IPL franchise owners, however are more open to starting with a minority stake. A CEO from another IPL team mentioned that a 49% stake would be a good starting point, with the option to increase their investment gradually. “The key question is how much that 49% constitutes of the overall value. If that number is too huge and I’m not sure of the returns, I’d rather take a small share to begin with, with the option to increase my stake over time.“ Balancing Control and Investment Value The ECB has clarified that the highest bid will not necessarily win. They seek partners keen on supporting the growth of the game at all levels, beyond just financial contributions. As the formal bidding process approaches, starting mid-September, the future of The Hundred and its appeal to IPL franchise owners hinges on balancing control, investment value, and operational harmony. The Sportz Planet Desk,Atharva Shetye
