We appreciate that many cricket supporters have several questions following the announcement on 31 January regarding the Lord’s franchise in The Hundred, London Spirit. We hope this webpage is helpful in answering some of these questions.
This page covers the following:
The story so far
Following game-wide consultation, ECB decided to divest its ownership of each of the eight franchises that comprise The Hundred (including London Spirit). In each case, ECB decided to gift 51% of the franchise to the Host Venue and then conduct a sales process to identify a private investor to purchase the remaining 49% that was owned by ECB. There was also the opportunity for investors to purchase additional equity if the Host Venue decided immediately to divest. Very few of the bidders for London Spirit showed an interest in doing so.
In light of these decisions by ECB, we embarked on a programme of consultation with MCC Members, culminating in a Special General Meeting (SGM) held last October to seek approval for a Resolution to authorise the MCC Committee to make appropriate arrangements for the Club to receive a 51% stake in London Spirit; and, if necessary, to exercise the Club’s right of veto regarding an investment partner (see “Will MCC retain its 51% stake?” below).
Members having voted overwhelmingly to approve the Resolution, the Club’s Hundred Steering Group (HSG) embarked on several rounds of meetings, over a three-month period, with potential buyers of the 49% stake in London Spirit. Though this was ECB’s 49% to sell, it was important that the Club led on the choice of partner, given our majority stake in the joint venture going forward.
Four potential investors were selected for the final Round 3 of the sales process and after the auction on 31 January, we announced that Cricket Investor Holdings Limited (CIHL) were the winning bidders. CIHL is a consortium led by Nikesh Arora of Palo Alto Networks and comprises leading figures from the US West Coast tech world as well as other seasoned investors in sports franchises. CIHL – or the “Tech Titans” as we have come to know them – bid £295m for the Enterprise Value of London Spirit, which means that the 49% offered by ECB will in our case realise £144.55m for the game. The remaining 51% belongs to MCC.
ECB’s sales process has now concluded for all eight franchises. Using the distribution models agreed at the start of the process by ECB, the eight Host Venues, the 11 remaining First-Class Counties and the recreational game, our share of the funds raised by the sale of equity will be confirmed at the conclusion of the exclusive negotiation period.
What happens now?
We have now entered into an eight-week period of exclusive negotiations with Nikesh and his partners. These negotiations are being informed by a detailed set of Term Sheets drawn up during extensive meetings between MCC and the Tech Titans, prior to the final round of the ECB sales process. We already have a very good understanding of our respective positions on most of the important matters which will govern our partnership. We have been greatly encouraged throughout at the approach adopted by the Tech Titans in the negotiations and by the respect they show for MCC and its history.
It is worth reminding everybody that the agreement will be for a 49% stake in London Spirit only; that is, it has no bearing at all on any Club asset or activity outside The Hundred.
All the franchises are following a similar timetable. The 2025 Hundred tournament will continue to be operated centrally by ECB, but there will be much work going on behind the scenes to facilitate a smooth transition before the new devolved regime becomes operational soon after the end of the 2025 season.
What will MCC do with the funds received from ECB’s sale?
We will make use of this one-off receipt from ECB to commit a financial contribution from the Club to the London Spirit franchise (i.e. without recourse to the Club’s existing funds). This funding will be used for the development and operation of Teamco – both on and off the field – with investment, for example, into players, backroom staff, commercial opportunities and fan engagement.
We will also use our share of the funds received from ECB to defray costs incurred on professional fees and due diligence in connection with the process.
Will MCC retain its 51% stake?
We are committed to retaining MCC’s 51% stake for the time being but, as noted in the SGM papers, we will keep under review whether and if so, when, to sell some, or all, of this stake. It became evident during the sales process that the bidders attached considerable value to MCC being actively committed and continuing as an equity holder. In the event that the Committee were to decide in the future that it is in the Club’s interests to make any sales, it remains our intention – as explained at last October’s SGM – to seek Members’ approval. We expect that any such request for approval would be undertaken through a formal process.
Will the team be renamed/rebranded?
In our discussions with the Tech Titans, both parties have maintained an open mind on whether or not to continue with the London Spirit name. There are advantages in using the name of the Club, MCC; the name of the Ground, Lord’s; and the name of our home city, London; the latter may give us the greatest traction as we look to grow the franchise and its brand. Team colours have also been the subject of discussion and we are leaning towards using MCC colours in the livery. On both name and kit, we will take decisions alongside our new partners. It should be pointed out also that these decisions will need ECB approval.
Conclusion
This is a critical step in finalising MCC’s first joint venture partnership and the start of another chapter in our long and storied history.
It is worth finishing with mention of ECB, who have achieved an outstanding result for the game. The funds raised will be transformational for the First-Class Counties and for cricket in general, at all levels. This is a very welcome outcome for MCC, of course, reinforcing our unique position in the game and proving conclusively that the Club commands both status and value on the national and international stage. We should all be hugely proud of this.
Lastly, we would like to thank Nikesh and his fellow investors for their faith in us. Their contribution means a great deal both to English cricket and to MCC. We believe they will be excellent partners for the Club. They are passionate about the game and bring skills and knowledge from which we will benefit on a broader canvas.
Together we plan to field successful men’s and women’s teams, each of them lucky to play at the best cricket ground in the world. Believe me, after the tremendous success of the women’s London Spirit team last year, our ambition is to see our men’s team on the same podium