This report is from this week’s CNBC’s UK Exchange newsletter with Ian King. If you enjoy it, you can subscribe here.
The Dispatch
This summer has been exceptionally thrilling for cricket enthusiasts in England.
The recently concluded series of five Test matches against India — a dominant force in global cricket finance — is poised to be remembered as one of the most remarkable series in history.
In cricket, there are various formats: Test Matches can last up to five days, sometimes concluding in a tie. One Day Internationals involve each team bowling up to 50 “overs,” while Twenty 20 (T20) allows 20 overs per team. Lastly, there’s The Hundred, the shortest format devised by the England and Wales Cricket Board (ECB), distinct from the European Central Bank.
This competition has gained immense popularity and recently drew in record investments, primarily from the U.S. and India, into England’s professional cricket landscape. Let’s delve deeper into that.
Launched this Tuesday, The Hundred is set to run for five weeks during the English school summer break and was developed in a politically charged environment. While it aims to engage younger fans confused by the sport’s traditional longer formats, it also seeks to shift power from the 18 counties that have historically formed the backbone of English professional cricket.
Previously, the cricket board owned only the TV rights and associated commercial opportunities from England’s men’s and women’s teams, most of which benefited the counties. With concerns over the diminishing value of these rights due to the rise of franchise cricket overseas, they created their own tournament.
The counties involved in The Hundred were compensated significantly to address their reservations. These concerns were justified, as evidence suggests the tournament, scheduled during the peak summer period, has marginalized traditional county matches in favor of the more lucrative competition, drawing many of the best players.
This has negatively impacted the County Championship, which has long been a cornerstone of English cricket, and other domestic events like the T20 Blast, which has generated substantial revenue over the past two decades.
The Hundred had a rocky inception, with its first draft occurring in October 2019—before the onset of COVID halted its inaugural season. When it finally launched in 2021, it was hailed as an immediate success, featuring packed stadiums, high TV ratings, and nearly 35 million views on social media for its clips.
As former England captain Mike Atherton pointed out in The Times, cricket’s appeal lies in staging it in summer with reasonable ticket prices, robust TV coverage, and simplified narratives, making it accessible to diverse audiences.
Since then, The Hundred has continued to thrive financially. By February, the eight teams were collectively valued at just over £975 million ($1.3 billion) after intense bidding from global investors, generating £520 million to reinvest in the sport while allowing the ECB to maintain control.
The ‘Haves’ and ‘Have-Nots’
This influx of capital into English cricket has understandably sparked fresh apprehensions, particularly regarding the potential for mismanagement, as seen in the English rugby union after substantial investment in 2013 led to the collapse of several clubs.
Another concern is the growing divide between affluent and struggling counties. The inaugural Leonard Curtis Cricket Finance report indicates that the top three counties — Surrey, Lancashire, and Warwickshire — made up 44% of total revenue among the 18 first-class counties in 2023, while the lowest three accounted for just 5.6%.
Rob Wilson, co-author of the report, emphasized that many counties overly depend on ECB funding, but The Hundred might mark a pivotal change. He stressed the importance of prudent financial management by the ECB to ensure that these funds are used wisely.
Additionally, traditionalists worry that events like The Hundred and franchise formats might undermine the quality and frequency of international matches. Recent disputes, like England pulling players from the IPL ahead of international tournaments, hint at a growing club-versus-country dilemma.
While the IPL presents enormous financial incentives that could drive players away from international duties, the dedicated fans of English cricket hope to see a balance maintained.
For now, though, with summer in full swing, this season of The Hundred promises thrilling matches featuring some of the world’s best cricketers, including newcomers from Australia, New Zealand, and Afghanistan. The excitement is palpable.
— Ian King
