Wednesday, January 22, 2025

IPL giants CSK & KKR rethink funding English league

CSK and KKR rethink investing in ‘The Hundred,’ citing doubts over ECB’s optimistic media rights projections for 2029–32, with issues about income sustainability.

Two well-known Indian Premier League franchises, Chennai Super Kings (CSK) and Kolkata Knight Riders (KKR), are now having second thoughts on investing in England’s franchise T20 tournament, The Hundred. According to a report by Cricbuzz, they are hesitating mainly due to doubts about the business model proposed by the England and Wales Cricket Board (ECB).

The ECB has shared media rights projections with potential investors, but CSK and KKR are sceptical about it. The report mentions that the ECB’s forecast of GBP 34 million per year in broadcast revenue for the 2029–32 cycle seems unrealistic and overly optimistic. This projection is about 16 times the current value, which the IPL teams find hard to believe.

Limited interest from IPL Franchises

Initially, more than half of the IPL teams showed interest in ‘The Hundred’, except for Royal Challengers Bangalore, Punjab Kings, and Gujarat Titans. However, as time has passed, many teams, including CSK, are reconsidering their involvement. A source quoted in the report indicates that CSK is not very enthusiastic about buying a team as of now.

Bidding process and Interested parties from IPL

The ECB is conducting the team-selling process in phases, with 3-4 bidders expected for each team. The highest bidder will secure the team, while others will compete for the remaining ones. The eight teams up for grabs are Birmingham Phoenix, London Spirit, Manchester Originals, Northern Superchargers, Oval Invincibles, Southern Brave, Trent Rockets, and Welsh Fire.

Besides CSK and KKR, other interested bidders include the owners of Mumbai Indians and Lucknow Super Giants, as well as Rajasthan Royals, Sunrisers Hyderabad, and Delhi Capitals. Negotiations are currently in their third round, and the deals are expected to be finalised between March and May.

In summary, while ‘The Hundred’ initially attracted interest from several IPL teams, concerns about media rights and revenue projections are causing some, like CSK and KKR, to rethink their participation. The final outcome will depend on further negotiations and the decisions made by the ECB and the interested IPL franchises.


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