IPL Founder Criticizes ECB’s Valuation of The Hundred
Lalit Modi, the founder of the Indian Premier League (IPL), has sharply criticized the England and Wales Cricket Board (ECB) for what he describes as an “unrealistic” valuation of their domestic cricket tournament, The Hundred. According to Modi, the ECB is out of touch with the market reality regarding the worth of its eight city-based franchises.
ECB’s Sale of Franchises
The ECB has launched a process to sell stakes in the eight teams by the start of the next season. Modi, posting on the social media platform X, revealed what he claims to be the prospectus sent to potential investors by the ECB’s financial advisors, Raine Group and Deloitte. He described the ECB’s valuation of the franchises as “dangerously overambitious and unsustainable.”
Modi’s Previous Interest in The Hundred
Earlier this year, Modi was reportedly interested in purchasing The Hundred as a whole. However, the ECB chose not to proceed with his proposal. His recent comments have drawn attention due to his past involvement and ongoing interest in the competition.
Comparison to Other Tournaments
Modi compared The Hundred’s franchises to those of other short-format leagues, like the Caribbean Premier League, stating that The Hundred’s teams may be valued lower or similarly. He suggested that each of The Hundred’s franchises might only fetch between £5 million and £25 million, with the London Spirit likely to hit the higher end of this range.
Broadcast and Sponsorship Revenue Projections
Modi also criticized the ECB’s forecast for international broadcast rights, which is expected to grow from £2.1 million currently to £35 million by 2032. He expressed skepticism about these figures, arguing that the competition for media rights from other leagues, such as the IPL, makes these projections unrealistic.
Additionally, sponsorship revenues for The Hundred are predicted to increase from £5.7 million to £32.6 million by 2032. Modi labeled these forecasts as “wishful thinking,” questioning their basis in reality.
ECB’s Response to Modi’s Criticism
The ECB, while disappointed by Modi’s public comments, reportedly anticipated some level of critique from potential investors. The organization is currently seeking investment for 49% of each franchise, having already allocated 51% to the host venues. The ECB previously declined a £400 million bid for 75% of the tournament from Bridgepoint Group, and it is now open to offers from various global sports investors, including those from IPL franchises and NFL teams.
Conclusion
As the ECB moves forward with its franchise sale, Modi’s critique of their valuation raises questions about the future financial success of The Hundred. While the ECB remains focused on securing private investment, Modi’s comments may influence investor confidence in the league’s long-term viability.(cricket betting app)