A group of tech billionaires has decided to purchase a 49 percent share in the Hundred franchise London Spirit, according to the PA news agency.
Cricket Investor Holdings Limited, under the leadership of Nikesh Arora, chairman and CEO of US cybersecurity firm Palo Alto Networks, is set to acquire a stake in the Lord’s-based team, with sources indicating the investment would be £145million, placing Spirit’s valuation at approximately £300m.
The consortium of 11 members and the Marylebone Cricket Club, which has been awarded 51 percent of the Spirit’s shares by the England and Wales Cricket Board, will now begin an eight-week negotiation phase to finalize the specifics of the agreement.
Avram Glazer, co-chair of Manchester United, along with Lancer Capital, aimed to secure a significant position at the cricketing headquarters, where Lord’s is anticipated to attract the top bid. However, other competitors, including a group linked to Chelsea’s Todd Boehly, were expected to offer strong rivalry.
On Friday, the proprietors of Major League Cricket team Washington Freedom, supported by Indian-American tech entrepreneur Sanjay Govil, allegedly reached an agreement to purchase a 49 percent stake in Cardiff’s Welsh Fire for approximately £65 million, indicating that arrangements are now secured for four of the eight Hundred franchises.
The other four teams will be revealed next week, as the ECB, which has not yet commented on the process, is anticipated to announce while prominent investors compete to align with names like the Tom Brady-supported Knighthead Capital and the owners of the Mumbai Indians.
The ECB is offloading 49 percent shares in every team participating in their 100-ball summer tournament, with the initial two bidders emerging victorious on Thursday.
Reliance Industries Limited, overseen by India’s wealthiest family, the Ambanis, emerged as the preferred bidders for Oval Invincibles in the initial match, following a reported bid of about £61 million that secured the deal.
The Invincibles will be part of a group of teams that spans India, South Africa, the United Arab Emirates, and the United States.
Birmingham Phoenix, located in Edgbaston, followed, with Knighthead, owners of Birmingham City – where NFL legend Brady serves as a minority shareholder – allegedly completing a £40m transaction.
All parties will now enter a phase of exclusivity, during which the necessary due diligence must occur before the final agreement is reached.
Ex-Gloucestershire spinner Vikram Banerjee, currently the director of business operations at the ECB, is overseeing the sale process for the governing body, with the project being conducted alongside Raine Group and Deloitte.
The initial valuations of the Hundred teams suggest that the ECB is likely to surpass its minimum valuation of approximately £350m for full ownership of all eight teams. Ten percent of the funds generated will be allocated to the recreational game, while the remaining amount will be distributed among all 18 first-class counties, including those not hosting, and the MCC.
The ECB anticipates a seamless conclusion to a lengthy process but is thought to be ready for public complaints from unsuccessful groups.
