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Cricket (Sport)

Cricket Australia's Big Sell-Off: A Global Game with Local Complications

Strategic Insights

— 2 min read

Cricket Australia (CA) and state associations are exploring private investment in the Big Bash League (BBL), a move that could transform the Australian summer of cricket. A Boston Consulting Group report has recommended injecting private capital into the BBL, sparking plans to wine and dine potential investors in Australia's eight BBL teams. However, this move has not been without controversy, with concerns over the retention of control and the impact on Test cricket.

Key Takeaways:

  • Cricket Australia and state associations are planning to sell minority stakes in the BBL teams, following a Boston Consulting Group report that advised private investment.
  • The sale of stakes could bring in significant revenue, with investors already being courted for discussions.
  • Private investors may require a clear-out of international cricket in January and February to accommodate BBL schedules, which could impact Test cricket.
  • The most critical issue is the retention of control, with concerns over who will control the BBL clubs and the decision to sell.
  • Cricket Victoria's Nick Cummins expressed concerns over private investment, stating that "how many voices do we want running Australian cricket?"
  • CA's leaders, including Chair Mike Baird and CEO Todd Greenberg, have been transparent about their caution, echoing the concerns of state associations.
  • John Knox, Cricket NSW Chair and partner of Ares Management, has been involved in the sale of teams in the Hundred, but may have to recuse himself from any direct involvement in the BBL sale process.

Statistics:

  • 51-ball David Warner century in 2011 heralded the arrival of the BBL.
  • The BCG report advised selling minority stakes in teams such as the Melbourne Stars and the Sydney Sixers.
  • CA's broadcasters, Foxtel and Seven, are enthusiastic about private investment, but aim to preserve the "mega days" of the Test summer schedule.
  • The proposed private investment could raise the BBL salary cap by up to $2 million per team.
  • The Australian summer of cricket is expected to undergo significant changes, with the BBL potentially starting around Christmas Day.

Sources:

  • [Boston Consulting Group report, title and publication date not specified]
  • [Cricket Australia, title and publication date not specified]
  • [Cricket Victoria chief executive Nick Cummins, quoted in the article]
  • [Neil Maxwell, agent for Pat Cummins, Mitchell Starc, and Josh Hazlewood, quoted in the article]
  • [Cricket NSW Chair John Knox, quoted in the article]
  • [Telegraph, "London Spirit owners complain about resting England players"](https://www.telegraph.co.uk/cricket/2021/10/13/london-spirit-owners-complain-resting-england-players-hundred/)
  • [The Australian, "Cricket Australia plans to sell stakes in Big Bash League teams"](https://www.theaustralian.com.au/sport/cricket/cricket-australia-plans-to-sell-stakes-in-big-bash-league-teams/news-story/46f82d7b38b421b0d0a18f4c8c362124)

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