THE HUNDRED SALES PROCESS: FREQUENTLY ASKED QUESTIONS

With eight partners having now entered a period of exclusivity with host venues in The Hundred, the ECB have issued the below answers to a set of frequently asked questions:

Where are we at in the process?

We are pleased to confirm the eight partners who have each entered a period of exclusivity with the eight host venues in The Hundred.

These eight partners were selected from shortlists chosen by the host venues. They will bring expertise, knowledge and an ability to grow The Hundred. In addition, their investment will help support the whole game in England and Wales – professional and recreational.

Following the period of exclusivity, at such a time the eight partners agree final terms with the host venues, the process regarding private investment into the eight teams in The Hundred will be finalised.

What are the partners buying?

The ECB invited private investors to invest in one of eight teams in The Hundred and partner with the host venue to run that team.

Initially partners were able to buy the 49% stake that the ECB is holding on behalf of the game, with hosts deciding whether to offer any of their 51% stake.

It is important to emphasise that this private investment has been made into The Hundred teams, not the host professional counties or their venues.

The ECB will retain ownership of the central competition, The Hundred, on behalf of the game and, with it, retain control over wider governance and the ability to protect both the core elements that make The Hundred unique – a short window, iconic venues, family audiences, men and women on the same stage – and the rest of cricket, such as Test matches, County competitions and the domestic schedule.

Why is it happening?

As a centrally owned and operated competition, The Hundred simply cannot compete with the level of investment that is going into other global leagues. Therefore, it has been essential to look for partners who can bring both investment and expertise to help us take the competition to the next level.

Since its launch in 2021, The Hundred has quickly established itself as an important part of the English cricket landscape. It has attracted new audiences and provided high-quality and entertaining cricket.

Over two million fans have now attended a match in The Hundred including over one million attending the women’s competition. Of the circa 500,000 ticket-buyers in 2024, 30% were new to cricket and across the four years of the competition, The Hundred has welcomed over 400,000 junior ticket-holders through its doors.

It has also helped to grow the game’s revenue and unlock new commercial opportunities – something which is essential to secure the long-term financial sustainability of the game most especially pertaining to the professional counties, the growth of women’s cricket and the grassroots game.

In a world where an increasing proportion of global revenues are focused on short format cricket, The Hundred needs to be able to compete with competitions around the globe, to showcase the world’s best players, the brightest young domestic talent and the greatest fan experience. Bringing new partners into The Hundred will help achieve that.

Why is it good for the game?

Investment from the eight new partners will support the whole game. This investment will enable The Hundred to grow commercially, attract new national and global audiences and continue to diversify the game’s revenue away from its heavy reliance on men’s international cricket.

The investment will also provide the platform for the sport’s long-term financial sustainability in England and Wales, both for professional county cricket and the recreational game.

The entire proceeds from this initial investment will be shared between the professional and recreational game, based on a formula agreed between the ECB and the counties.

Approximately £50m is set to be distributed to the recreational game. Professional counties which don’t host a Hundred team will receive a bigger share of the sale of the ECB’s 49% stakes than those which do host a Hundred team.

This process has also given us an opportunity to bring in world-class partners with skills and expertise across a range of different areas to help create a competition that can stand up on the global stage.

Where is the money going to go from the sale of The Hundred teams?

Through consultation with the whole game, we have agreed a distribution model that will see 100% of sale proceeds shared amongst the recreational and professional game. The first 10% of any portion of the ECB’s share, or a host county’s share will go straight to the recreational game.

The proceeds from the ECB’s 49% will be divided across the 18 professional counties and MCC (less the 10% to the recreational game).

In order to minimise the risk of financial polarisation between hosts and current non-hosts, the ECB and counties have agreed to apply a formula to increase the value received by each of the current non-host professional counties.

• Proceeds up to £275m valuation (of the ECB’s 49%) will be distributed equally to the 18 professional counties and MCC.
• Proceeds between £275m and £425m valuation (of the ECB’s 49%) will be distributed only to the 11 current non-host professional counties.
• Proceeds over £425m valuation (of the ECB’s 49%) will again be distributed equally to the 18 professional counties and MCC.

Any proceeds from the sale of any of the host professional counties 51% will be distributed as follows:

• Again, a 10% distribution to the recreational game.
• 10% equally distributed across the 18 professional counties and MCC (excluding the host county) – this is to ensure that all professional counties benefit from any future growth of a host county’s retained shareholding.
• The remaining 80% of the value being retained by the host county.

How was the split between Host and Non-Host professional counties decided?

The ECB consulted extensively with counties over the period of a year to agree on this distribution model, amongst other elements. The game has agreed this model which aims to fairly distribute proceeds across the game and minimise financial polarisation between host and non-host counties. As such, it includes additional proceeds for non-hosts from ECB’s shareholding, as well as an additional 10% from the host-county’s 51% to ensure they benefit from any future growth if a host retains their shareholding.

Host-counties will benefit from the majority of value from their shareholding, however, will receive substantially less cash through the initial sale proceeds and be required to take on the risk of the team’s profit and loss in future.

What else does this new model mean for host counties?

Professional counties who are host venues will benefit from significant value, both from the sale of the ECB’s 49% and through their own 51% shareholding, which they are either holding or selling a percentage of in the initial sales process.

All professional counties will also continue to benefit from the annual £1.3m distribution linked to The Hundred, along with matchday revenues and a share of any retained profit that the team may generate.

The level of control a host retains over their team will vary by county and the agreements that are put in place with new partners but in any scenario there will be closer alignment between county and the team they host in The Hundred and a greater say in decision-making.

Professional counties who are host venues will take on responsibility, together with their new partner, for growing each of the individual teams and supporting the overall growth of the competition, for the benefit of the whole game.

What else does it mean for non-host counties?

Non-host professional counties will benefit from significant value which will help them to drive sustainability and purpose.

They will also continue to benefit from the £1.3m annual distribution linked to The Hundred, with the potential for further distributions depending on future growth.

As The Hundred grows, there may be the opportunity to add teams to the competition and for non-host professional counties to form a new team. This would bring significant further financial and wider benefits to both the new host and remaining non-hosts.

What does it mean for grassroots cricket?

The recreational game will receive 10% of total sale proceeds, set to be around £50m. This is a significant cash injection to support delivery of grassroots cricket.

The ECB allocates funds to both national and regional projects, and works with its county partners through clear frameworks to ensure money is invested strategically. All of the ECB’s revenues flow back into the game, either reinvested in the same year or added to our reserves to fund expenditure in future years.

Now that this process has concluded, the ECB’s Recreational Game Committee will establish a long-range, strategic investment plan. The primary considerations will be providing long-term financial sustainability to the recreational game and enabling exciting new facility projects, retaining a focus on supporting the game in its mission to become the most inclusive team sport in England and Wales.

How will the wider game be protected?

The ECB is acutely aware that this will be the most significant private investment in the history of cricket in England and Wales and is determined to get it right and protect the history and traditions of the game.

The ECB will retain ownership of the central competition, The Hundred, on behalf of the game and, with it, retain control over wider governance and the ability to protect both the core elements that make The Hundred unique – a short window, iconic venues, family audiences, men and women on the same stage – and the rest of cricket, such as Test matches, county competitions and the domestic schedule.

Additional governance provisions are being put in place to provide protection from adverse future transactions, and protect core competition elements and red lines, such as the schedule.

Are there limits on how the counties spend their money?

The sale of equity in each of the eight teams in The Hundred presents a significant opportunity for a considerable capital injection into the game of cricket in England and Wales.

The recreational game will receive 10% of total sale proceeds. With regards to the money distributed to the professional game, our overarching principle is that these funds should be employed to support the financial sustainability of professional cricket.

We will utilise the County Partnership Agreement (CPA) to ensure that while counties do have autonomy over their funds, they are operating within a framework and are held to account on their financial sustainability.

The expenditure of funds is expected to be in one of three core investment areas: building reserves, revenue generation, debt reduction.

What impact does this have on red-ball cricket?

The future of four-day and Test cricket is extremely bright. Test cricket remains the pinnacle of the game for many players, and red-ball cricket remains the game’s backbone.

One of the ECB’s objectives going into The Hundred investment process is to protect the whole game: this includes red-ball cricket.

By retaining control of the central competition, the ECB (and by virtue, its 41 members, the professional counties and recreational counties) will have the ability to control key elements such as the domestic schedule.

As outlined above, the proceeds from this investment will support the financial sustainability of our counties.

Will The Hundred take up a bigger part of the cricket calendar now the new eight partners are involved?

Part of the appeal of The Hundred – to players, fans and broadcasters – is that it is played in a short window that is conducive to exciting cricket. There is no intention to change the length of the window, and it will not be within the control of the partners to do this.