Strictly speaking, it is only the much-maligned The Hundred that the knife is applied to, but the domestic repercussions are likely to be profound.
In mid-May, I suggested that a crossroads had been reached by the shorter and longer formats. Since then, events have moved on, accelerated by the upstart Hundred tournament in just its fourth season.
It has had a polarizing effect ever since it was conceived. First, it is played in August, traditionally reserved for longer formats. Secondly, it has 100 deliveries per innings, delivered as sets of five which differentiates it from T20 cricket, which has 120 deliveries, delivered as normal six-ball overs.
Third, of the 18 counties that form the basis of professional cricket in England and Wales, seven, plus the MCC at Lord's, were selected to host city-based teams. Nominally, the teams are franchises but in practice are owned by the England and Wales Cricket Board, which has funded the tournament.
An ECB assessment of the tournament's finances in 2023 suggested a loss of $12.3m (£9.7m) over the first two years. This compares with the ECB's claim the previous year – under management that introduced the tournament – that it made a profit of almost $15.2 million. Defining relevant costs explains some of the difference.
The ECB required a two-thirds majority among the counties to support the tournament and paid them nearly $32 million in 2019 for their support. Covid-19 intervened to delay the start of the competition until 2021. The ECB argued that this support money was a negligible cost.
The impact of Covid-19 on hundreds' ability to achieve the projected financial return was accompanied by its negative effect on the economy of the rest of the domestic game, from which most counties have struggled to recover.
In total, the county's long-term debt is estimated at about $280 million. Income is required to pay this debt. This need, plus increased costs for operations, has caused profit levels in most counties to drop. In 2022-2023, nine of the 18 reported losses and another six reported only cross-border gains.
It is in this context that the proposed privatization of Hundra must be seen. The ECB is making 49 percent of its ownership of the tournament available to investors. The balance of 51 percent is to be held by each of the eight teams in Hundra. They can decide to keep, sell in whole or partially sell in a process that will be monitored by the ECB.
A proportion of the ECB's asset sales will be allocated to the counties that do not have a franchise in the hundred, while 10 per cent will be allocated to the recreational game. Understandably, the prospect of a large number coming into play appeals to those who have fought for so long to keep the counties a continuing concern.
The sales period is set for the three months from mid-September after this year's edition has ended. There has been talk of uncertainty among potential investors about what is being made available to buy. If an investor buys a 49 percent stake from the ECB, who becomes the owner or owners of the 51 percent? How will that relationship work and how will costs and revenues be shared? There are many variables and potential outcomes to consider in the complex negotiations ahead.
In Hampshire, the likely outcome appears to have been decided before the starting gun. On the brink of insolvency in 2001, Hampshire County Cricket Club was rescued by Rod Bransgrove, a local businessman. HCCC moved to new ground and changed from being a members club to a private limited company.
Over the years the land has been developed to include a hotel, golf course, leisure and hospitality facilities. Now this entire development is understood to be on the brink of being acquired by the GMR Group, 50 percent owner of the Indian Premier League franchise, the Delhi Capitals.
Bransgrove owns about 60 percent of the shares in the company that owns HCCC. Development on the land has been financed by debt and with the support of local authorities. The use of public funds has sparked opposition in the past. It is believed that the $152 million that GMR is rumored to be paying includes full or partial repayment of these and other loans.
Full control of the Southern Braves, the Hundred's men's and women's teams based in Southampton, will be taken. The deal will need to be approved by the ECB and it remains to be seen whether its 49 per cent stake in the Southern Braves will be sold to GMR and if so at what price.
Undoubtedly, this is a landmark for cricket in England and Wales, a further step in radically changing its landscape, not just in terms of the Hundred. It breaks the mold of how professional cricket has traditionally been owned.
There are only two other members-only county clubs – Durham and Northamptonshire – neither of which currently have a 100-cap team. Those managing the seven franchises other than Hampshire are in communication with their members. Demutualisation is known to be under discussion, particularly at the heavily indebted Yorkshire County Cricket Club.
One threat that has become apparent to Hundra over the past two weeks is the level of competition they face from other franchises. There has been overlap with the Major Cricket League in the United States and the Global T20 in Canada, with some players preferring to play in North America for either the entire tournament or part of it
Money talks and Hundred's promoters need to move quickly if they are to put themselves in a prime position to attract the very best players for the entire tournament.
The increased ownership of franchises by Indian interests is clearly visible in cricket's global landscape. They provide the investment that some in the English game are asking for. They also create a fear, among other things, of how the culture and structure of county cricket will be affected.
There is an impression that opposition to Hundred's sale is muted outside a group of diehards, largely because very few in power are prepared to pass up the investment opportunity.
