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Last week Hampshire Cricket Club finalised a takeover deal with the Indian Premier League’s Delhi Capitals co-owners the GMR Group (GMR).

Hampshire has agreed a ‘significant strategic partnership’, becoming in the process the first county cricket club to be owned by an overseas franchise, and joining GMR’s global cricket portfolio alongside the Delhi Capitals, Dubai Capitals, Pretoria Capitals and Seattle Orcas.

The deal, believed to be worth £120m, will see GMR acquire Hampshire Cricket and its Utilita Bowl stadium (including the on-site hotel and golf course). GMR will provide “a material injection of capital” to start paying off Hampshire’s £60 million debt.

Following agreement by the England and Wales Cricket Board (ECB) at the end of September, GMR has now taken a majority stake in the club and has plans for a phased takeover, with the expectation of completing a full acquisition over the next two years.

According to the ECB’s chief executive, Richard Gould, the sale: “demonstrates the global interest in investing in cricket in England and Wales, and underlines the continuing appeal of county cricket.”

While Hampshire may be the first county cricket club to be owned by an overseas franchise, the chances are high that they will not be the last. With most county clubs heavily reliant on ECB funding for the majority (sometimes up to 60%) of their income, private investment may present attractive opportunities for both parties.

Hampshire’s diversified business model, with its on-site hotel and golf course alongside the redeveloped stadium, made the club attractive to investors. The opportunity to also potentially buy into Hampshire’s successful Hundreds side, the Southern Brave, ahead of the forthcoming sale of equity in the competition, was also a consideration. Unsurprisingly, GMR is reportedly exploring making an investment in Southern Brave, including buying a majority stake in the Hundred franchise.

Other investors will be looking at similar opportunities with interest, although it should be noted that only three teams – Hampshire included – are privately owned, so the process is likely to take longer for any sales of member-owned clubs. Hampshire has said the deal was initially discussed over 12 months ago, so the Club’s owners have acted nimbly; their skill has been to identify an opportunity, develop a compelling offer and find the right partner to take the club to the next level.

While the county game can be resistant to change, county membership has fallen steadily while the financial pressures on clubs have only increased. To secure a vibrant future for county cricket, investment is undoubtedly required. Whether other IPL franchises follow suit over the coming years and how the county game evolves as a result will make for interesting viewing… though my eyes will still be mainly on the cricket!

 

Contact our Sports Law and Corporate & Commercial expert:

David Little is a Partner at Bishop & Sewell in our expert Sports Law and Corporate & Commercial teams. If you would like to contact him, please call on either 07968 027343 or, 020 7631 4141 or email: company@bishopandsewell.co.uk.

The above is accurate as at 08 October 2024. The information above may be subject to change.

The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.


Category: News, Blog | Date: 8th Oct 2024


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