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India’s billionaire Ambani family has won the bidding battle for a stake in the first of eight English cricket teams being put up for auction by the sport’s governing body as it seeks to raise hundreds of millions of pounds.
The family saw off competition from private equity firm CVC Capital Partners as it emerged victorious in the the fight for the Oval Invincibles, according to three people familiar with the matter.
The London-based franchise on Thursday became the first from The Hundred — a short-form contest that takes place each summer in England — to open up to outside investment in an online bidding process for a 49 per cent stake in each entity. CVC declined to comment.
A stake in Birmingham Phoenix was also on the block, with bidding for stakes in the remaining teams set for the coming days, as the opportunity to buy into English cricket attracts a range of international investors.
The England and Wales Cricket Board, which is selling the team stakes, has pitched The Hundred auction as a rare chance to buy into a closed league in one of the sport’s biggest markets. It hopes to emulate the success of the Indian Premier League, one of the world’s richest sports properties with multibillion-dollar TV deals. However, The Hundred is still in its infancy and brings in just £40mn a year from broadcast rights.
The Glazer family, which controls the Manchester United football team, and a consortium that includes Chelsea Football Club co-owner Todd Boehly, are among potential suitors who have shown interest in buying stakes in the franchises. Owners of several teams in the lucrative Indian Premier League are also expected to bid.
Victory for the Ambanis means they have exclusivity and are set to finalise documentation in the coming weeks, according to one of the people. Taking the stake in Oval Invincibles would add to their global cricket interests, which include teams in South Africa, the US and the United Arab Emirates.
The Ambanis, majority owners of Reliance Industries, are among India’s richest and most influential families, with their business interests extending from energy to telecommunications.
The family also has interests in entertainment and sport, including ownership of the Mumbai Indians cricket franchise, five-time winners of the lucrative IPL. At last year’s Paris Olympics, Nita Ambani, who is married to tycoon Mukesh Ambani, campaigned for India to host a future Games.
The sale of the eight teams that compete in The Hundred is a pivotal moment for the future of the game. The ECB initially aimed to raise £500mn from the auction process but has recently discussed a figure of £350mn.
That money has been earmarked to help professional cricket clubs invest in infrastructure upgrades and new revenue sources, such as building hotels or conference facilities at their stadiums. It will also help some clubs reduce their debts.
The ECB hopes the arrival of professional investors into The Hundred will boost the competition’s appeal both at home and abroad by bringing in fresh expertise in areas such as marketing and fan engagement.
The new owners will also enable the ECB to increase some of the spending caps in the contest so that it can compete for top cricket talent against the many other short-form competitions that have sprung up across the world.
Bringing in deep-pocketed investors will also help The Hundred to attract top cricketers to play in the competition, at a time when star talent can command seven-figure sums to participate in the IPL.
However, the competition itself has proven controversial with long-standing cricket fans, with critics complaining that the format is simply a gimmick designed for children and casual viewers.
