NEW DELHI: Former chairman and founder of the Indian Premier League Lalit Modi has issued a warning to potential investors, particularly those from India, about the projections made by the England and Wales Cricket Board (ECB) concerning The Hundred tournament.
The ECB plans to privatize The Hundred by selling almost 100 percent stake in the eight teams of the league.
Birmingham Phoenix, London Spirit, Manchester Originals, Northern Superchargers, Oval Invincibles, Southern Brave, Trent Rockets, and Welsh Fire are the eight teams in The Hundred and several owners of IPL franchises, including Mumbai Indians, Kolkata Knight Riders, Chennai Super Kings, Lucknow Super Giants, Delhi Capitals, Sunrisers Hyderabad, and Rajasthan Royals, are reportedly interested in acquiring a stake in the ECB’s 100-ball tournament.
“They are trying to build hype in a tournament that is basically not worthwhile in the way they presented it,” Modi told Cricbuzz.
The Hundred has completed four seasons.
The ECB has projected a significant increase in revenue from media rights deals.
The England board expects to earn 1.8 million pounds (around Rs 20 crore) from next year until 2028, with projections of over 800 percent growth in 2029 when the revenue from the India market is expected to reach 15 million pounds (around Rs 160 crore).
Only Indian women players feature in the competition and not the men.
In the domestic market, the ECB currently earns 38 million pounds a year and anticipates this value will increase by 125 percent to 85 million pounds in the 2029-32 cycle.
“For the next media rights cycle, the ECB and The Hundred teams will consider whether to market The Hundred as part of a broader UK cricket bundle or as a standalone product. If included in a broader package, revenue allocation to The Hundred will be determined in accordance with a fair and transparent model utilising industry-standard metrics,” the document, seen by Cricbuzz, mentions.
The document adds that rights for the 2025-28 cycle have already been sold to Sky Sports for 51 million pounds a year, with an additional 3 million pounds a year expected from a Free to Air (FTA) broadcast deal.
“India Media Rights: contracted through 2028 at an average annual value of 1.8M pounds – the forecast assumes a new deal with an average annual value of 15.0M pounds in 2029, as the world’s largest cricket market,” the 87-page presentation, states. As website had reported on August 29, the ECB was seeking a Non-Disclosure Agreement (NDA) from interested parties before sharing this Information Memorandum (IM).
Modi took strong exception to these projections, particularly those related to overseas markets. “They’re trying to fool people like this. International rights are worth zero. If you remove that figure, you remove the sponsorship increase. International market is completely a hoodwink as far as I’m concerned. If you look at all the leagues, none of them are able to make any revenue from overseas markets – whether the SA20 (in South Africa), the Big Bash (in Australia), ILT20 (in UAE) or the Caribbean Premier League (CPL).”
He disclosed that for the first three years, the IPL was given free of cost in the overseas markets.
Modi also questioned the valuation of a team. The document titled ‘Project Gemini Information Memorandum’ does not specify the cost at which the ECB intends to sell the eight teams, but Modi claims the English board expects close to 300 million pounds for a team.
“They are hoping to get a valuation of 300 million. That is where the issue lies. You can buy the team at $5 million. Maybe, for Lords, you can fancy it and put it for $25 million. It’s not a worthwhile proposition.”
Modi revealed that the ECB wants the entire valuation paid upfront.
In contrast, IPL franchise payments were staggered over ten years. In a social media post on X (formerly Twitter), Modi had described the whole privatization effort as a Ponzi scheme.
When contacted, the ECB declined to comment on the revenue projections, team valuations, or Modi’s assessment.
This Information Memorandum has been issued on behalf of the ECB to a select number of recipients who have signed a secrecy agreement. It states, “Investment in The Hundred is a rare opportunity to shape the future of a premier sports property and capitalize on its significant growth potential.
ECB currently owns 100% of The Hundred competition and all its teams
ECB will sell at least 49% of each of the eight teams to new investors with the vision, experience and capabilities to propel The Hundred to new heights
ECB then plans to gift its remaining stake in each of the teams to their respective hosts, creating a lasting partnership between new investors and some of the world’s iconic cricket institutions.
As a part of this process, hosts will also have an option to sell a portion of their equity in the teams to the new investors to provide a path to a control position
Governance, commercial and other aspects of the host / team / investor relationship will be negotiated prior to closing to formalize the collaboration framework.”
The document acknowledges, “This Information Memorandum contains forward-looking statements that involve substantial risks and uncertainties, and actual results and developments may differ materially from those expressed or implied by these statements due to a variety of factors. These forward-looking statements speak only as at the date of this Information Memorandum.”
The IM adds, “The ECB reserves the right, without giving reasons, at any time and in any respect, to amend or terminate the proposed transaction, or to terminate negotiations with any prospective purchaser. In particular, the new operating model set out in this Information Memorandum is subject to change and the ECB reserves the right to amend the equity structure of any team at any time prior to completion. By accepting this Information Memorandum, the recipient agrees to be bound by the foregoing limitations.”