FBInCIAnNSATerroristSlayer
2024-07-24 10:33:26 UTC
I don't understand WHY IPL franchises are interested in HUNDRED, a
format which no other country plays and cares about.
==================================================================
https://www.espncricinfo.com/story/ipl-franchises-eye-controlling-stakes-in-hundred-teams-1444305
IPL franchises eye controlling stakes in Hundred teams
An integral part of ECB's privatisation of the Hundred involves the
eight teams being run as a joint venture
Nagraj Gollapudi
24-Jul-2024 • 7 hrs ago
Is it wise or profitable to buy the minority (49%) stake being offered
by ECB to own one of the eight franchises in the Hundred? That's the
question being asked by owners of almost all of the 10 IPL teams, most
of whom are keen to buy teams in the Hundred but not in favour of being
a "passive" investor.
An integral part of ECB's privatisation of the Hundred, which launched
its fourth season on Tuesday, involves the eight teams being run as a
joint venture. The ECB has finalised a model which will leave 51% stake
with eight Hundred 'hosts' - seven counties and, in the case of London
Spirit, Marylebone Cricket Club (MCC). The remaining 49% will be sold to
private investors, which will be finalised by ECB in coordination with
the hosts, who have also been given the choice to divest some or all of
their stakes before the formal bidding process from mid-September.
But several IPL franchise owners have expressed reservations, especially
on the controlling stake which, along with trust, is one of two key
factors that determine the success and longevity of any joint venture.
It is no different for the Hundred.
"This is going to be new for anyone who's coming in, because in all the
other franchise investments, we are 100% owners," said the head of one
IPL-winning franchise. "The dynamics of that are very different. Here,
it's going to be a joint venture. There's valuation subject, then
there's ownership subject, then there's operational matters - all these
issues come to the fore immediately."
The official, who declined to be named, said the very fact that there's
another partner, whether they have a minority or majority stake, raised
a "stumbling block" and "a huge difference" to how their franchises
operated elsewhere. "If it is 49 %, who's in charge? Would you want to
come in as a pure investor? Probably not. I don't know the answer to
that yet.
"But we have been told that control and all those things could be baked
in for the investor who's coming in. I don't know that there'll be a
great deal of appetite and interest to say, 'OK, here's a cheque. I
would like to be a passive investor. Let it run as it is and we'll
contribute to the extent we can.' No."
"The key question is how much that 49% constitutes of the overall
value. If that number is too huge and I am not sure and I see enough
returns, then I would rather take a small share to begin with"
An IPL CEO said they are open to a smaller stake in the Hundred
Vikram Banerjee, head of business operations at ECB, was made aware of
investors' concerns on his trip to India during IPL 2024, where he met
with owners and management at various franchises.
"For a number of them, it's around things like brand," Banerjee said on
the subject of control. "For a lot of them it is cricket, and being in
control of the cricket side of things and others, pure and simple
majority stakes from an equity perspective. So we understand that and we
understand where they are at. We have then built that into the process.
"If you look across our eight teams, there will be a variety there that
will be on market, and that clarity will be provided when we go to
market in September. And that clarity will provide a range that I
believe, at this point, will have different offerings that will suit all
different kinds. And then as the conversations build, the details will
build through October, November, December. We'll get to a really good
place by the time the process runs its course."
Among the eight franchises, so far, the MCC has declared it will
consider selling part or all of its 51% stake subject to approval from
its membership which will vote on the subject by mid-September. Surrey,
who own the other London-based franchise - Oval Invincibles - have said
they have no plans to divest any of their 51% stake.
Richard Gould, the ECB's chief executive, didn't rule out the
possibility of the investors holding a 100% stake subject to their
fulfilling various criteria. "There's certainly the opportunity for
people to have, potentially, 100% ownership. It depends on the
capabilities that they can bring both in terms of finance and
operational delivery. Those opportunities do exist."
The ECB had been clear at the outset that the highest bid will not
necessarily be the winning one. Banerjee said while there was no denying
money was important, the board also wanted partners who were keen to
support the growth of the game at all levels.
Venky Mysore, CEO at Kolkata Knight Riders, the defending IPL champions,
said the success of a joint venture is determined by the "chemistry"
between the investor and the county in the case of the Hundred. Mysore
has been at the helm of the Knight Riders group since 2011, and has
overseen their buying and establishing teams in the Carribean Premier
League, International League T20 and Major League Cricket.
"Like in any joint venture there are legacy issues which will be there
in the Hundred, too," Mysore told ESPNcricinfo earlier this month. "The
existing shareholder group has existed for 100-plus years, and suddenly,
you have a new investor coming in and you are joining hands.
"Ultimately in any joint venture, with my experience, it boils down to
the chemistry recipe. It's not the number: it's not about a closed bid
and 'here's a cheque' and the highest bid wins. From our perspective and
from the partner's perspective who have already spoken with us, it's
about that chemistry. Can you work together? Because this is for the
long run.
"Speaking for ourselves… we think about it for the long haul. So
something like [the Hundred], again, you think about it for the long
haul and then say, 'OK, it's a joint venture'. If it has to work, then
the people, the chemistry has to be a big determining factor. And those
are the risks of joint ventures in general."
Not everyone is chasing a majority stake, though. A CEO at a third IPL
team told ESPNcricinfo that since they are just dipping their feet in
the Hundred, and doesn't fully understand the business model, they would
prefer to buy a smaller stake in a franchise and build on it gradually.
"49% is good enough to begin with," the CEO said. "The key question is
how much that 49% constitutes of the overall value. If that number is
too huge and I am not sure and I see enough returns, then I would rather
take a small share to begin with, with a rider that I would be allowed
to take more of a stake with every passing year, or every five years."
format which no other country plays and cares about.
==================================================================
https://www.espncricinfo.com/story/ipl-franchises-eye-controlling-stakes-in-hundred-teams-1444305
IPL franchises eye controlling stakes in Hundred teams
An integral part of ECB's privatisation of the Hundred involves the
eight teams being run as a joint venture
Nagraj Gollapudi
24-Jul-2024 • 7 hrs ago
Is it wise or profitable to buy the minority (49%) stake being offered
by ECB to own one of the eight franchises in the Hundred? That's the
question being asked by owners of almost all of the 10 IPL teams, most
of whom are keen to buy teams in the Hundred but not in favour of being
a "passive" investor.
An integral part of ECB's privatisation of the Hundred, which launched
its fourth season on Tuesday, involves the eight teams being run as a
joint venture. The ECB has finalised a model which will leave 51% stake
with eight Hundred 'hosts' - seven counties and, in the case of London
Spirit, Marylebone Cricket Club (MCC). The remaining 49% will be sold to
private investors, which will be finalised by ECB in coordination with
the hosts, who have also been given the choice to divest some or all of
their stakes before the formal bidding process from mid-September.
But several IPL franchise owners have expressed reservations, especially
on the controlling stake which, along with trust, is one of two key
factors that determine the success and longevity of any joint venture.
It is no different for the Hundred.
"This is going to be new for anyone who's coming in, because in all the
other franchise investments, we are 100% owners," said the head of one
IPL-winning franchise. "The dynamics of that are very different. Here,
it's going to be a joint venture. There's valuation subject, then
there's ownership subject, then there's operational matters - all these
issues come to the fore immediately."
The official, who declined to be named, said the very fact that there's
another partner, whether they have a minority or majority stake, raised
a "stumbling block" and "a huge difference" to how their franchises
operated elsewhere. "If it is 49 %, who's in charge? Would you want to
come in as a pure investor? Probably not. I don't know the answer to
that yet.
"But we have been told that control and all those things could be baked
in for the investor who's coming in. I don't know that there'll be a
great deal of appetite and interest to say, 'OK, here's a cheque. I
would like to be a passive investor. Let it run as it is and we'll
contribute to the extent we can.' No."
"The key question is how much that 49% constitutes of the overall
value. If that number is too huge and I am not sure and I see enough
returns, then I would rather take a small share to begin with"
An IPL CEO said they are open to a smaller stake in the Hundred
Vikram Banerjee, head of business operations at ECB, was made aware of
investors' concerns on his trip to India during IPL 2024, where he met
with owners and management at various franchises.
"For a number of them, it's around things like brand," Banerjee said on
the subject of control. "For a lot of them it is cricket, and being in
control of the cricket side of things and others, pure and simple
majority stakes from an equity perspective. So we understand that and we
understand where they are at. We have then built that into the process.
"If you look across our eight teams, there will be a variety there that
will be on market, and that clarity will be provided when we go to
market in September. And that clarity will provide a range that I
believe, at this point, will have different offerings that will suit all
different kinds. And then as the conversations build, the details will
build through October, November, December. We'll get to a really good
place by the time the process runs its course."
Among the eight franchises, so far, the MCC has declared it will
consider selling part or all of its 51% stake subject to approval from
its membership which will vote on the subject by mid-September. Surrey,
who own the other London-based franchise - Oval Invincibles - have said
they have no plans to divest any of their 51% stake.
Richard Gould, the ECB's chief executive, didn't rule out the
possibility of the investors holding a 100% stake subject to their
fulfilling various criteria. "There's certainly the opportunity for
people to have, potentially, 100% ownership. It depends on the
capabilities that they can bring both in terms of finance and
operational delivery. Those opportunities do exist."
The ECB had been clear at the outset that the highest bid will not
necessarily be the winning one. Banerjee said while there was no denying
money was important, the board also wanted partners who were keen to
support the growth of the game at all levels.
Venky Mysore, CEO at Kolkata Knight Riders, the defending IPL champions,
said the success of a joint venture is determined by the "chemistry"
between the investor and the county in the case of the Hundred. Mysore
has been at the helm of the Knight Riders group since 2011, and has
overseen their buying and establishing teams in the Carribean Premier
League, International League T20 and Major League Cricket.
"Like in any joint venture there are legacy issues which will be there
in the Hundred, too," Mysore told ESPNcricinfo earlier this month. "The
existing shareholder group has existed for 100-plus years, and suddenly,
you have a new investor coming in and you are joining hands.
"Ultimately in any joint venture, with my experience, it boils down to
the chemistry recipe. It's not the number: it's not about a closed bid
and 'here's a cheque' and the highest bid wins. From our perspective and
from the partner's perspective who have already spoken with us, it's
about that chemistry. Can you work together? Because this is for the
long run.
"Speaking for ourselves… we think about it for the long haul. So
something like [the Hundred], again, you think about it for the long
haul and then say, 'OK, it's a joint venture'. If it has to work, then
the people, the chemistry has to be a big determining factor. And those
are the risks of joint ventures in general."
Not everyone is chasing a majority stake, though. A CEO at a third IPL
team told ESPNcricinfo that since they are just dipping their feet in
the Hundred, and doesn't fully understand the business model, they would
prefer to buy a smaller stake in a franchise and build on it gradually.
"49% is good enough to begin with," the CEO said. "The key question is
how much that 49% constitutes of the overall value. If that number is
too huge and I am not sure and I see enough returns, then I would rather
take a small share to begin with, with a rider that I would be allowed
to take more of a stake with every passing year, or every five years."