When discussing the future of cricket, most discussions center on the franchise T20 leagues. Writing is on the wall, going into the future, cricket will have to adopt a league model similar to football. This means that more windows and resources will be allocated for franchise leagues, and whatever remains will go to international cricket.
Cricket boards have realised this and are now prioritizing the establishment and strengthening of their leagues. The franchise leagues are valued highly. To put this into perspective Indian Premier League (IPL) team Gujarat Titans has reached an evaluation of $1.3 billion.
T20 cricket captures more eyeballs and taps markets where cricket couldn’t reach before. This deal is too good to let go, so even countries like the United Arab Emirates (UAE) and the United States (USA), where the game is not popular among the locals, but to bank on expat cricket fans, they have started their leagues.
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Australia is missing out on the franchise T20 Gold Rush
In a time where everyone is capitalizing on the big bucks from the shorter format, Australia is not benefiting from this as much as it should be. The Big Bash League (BBL) was the second league to be started after the success of the IPL. When it comes to potential growth, it is even behind the recently started MLC in the USA and SAT20 of South Africa.
Unlike other leagues, BBL teams are owned by Cricket Australia, not private owners. Cricket Australia has maintained its stance until recently not to go to private investors and maintain its control over the league.
Due to the absence of private investors, BBL is not on par with the other leagues and will decline if drastic measures are not taken. The other issue with BBL is the lack of availability of star Australian players. This is also a contributing factor in BBL not generating enough revenue compared to other leagues.
New Cricket Australia CEO’s vision for BBL
Todd Greenberg assumed office in March this year. Greenberg’s predecessor, Nick Hockley, signed an AUD 215 million extension of broadcast deals with local broadcasters Seven and Fox Sports until 2031. CA lost AUD 32 million during the 2023-24 fiscal year.
Cricket Australia has limited revenue streams, and these broadcast deals are a major chunk of it. With broadcast deals already out of the way, Greenberg had to explore other opportunities to earn revenue. Although CA is expected to make 70 million AUD with this year’s Ashes tour still that will still be a short-term fix.
Inspiration from The Hundred franchise sale
The month before Greenberg settled into his new office, England’s The Hundred sold the minority stakes of its franchise to private owners and raised $1.06bn. Greenberg took notes from this and started exploring similar opportunities with BBL.
Greenberg and Chair Mike Baird appointed Boston Consulting Group (BCG) to assess the BBL model.
BCG’s Recommendations
After the completion of the assessment, BCG made the following recommendations:
- Exploring private investment
- Optimising the BBL schedule
- Increasing the salary cap
- Possible expansion
Public Concern and Cultural Sentiment
These potential changes were not received well by the general public, as many Australians are skeptical of private ownership and show resentment toward the idea. In the words of Eric Windholz, Monash University professor of sports law, “We, the public, feel like we own the sport.”
Greenberg’s Assurance to Fans & Stakeholders
Earlier this week, Greenberg held a press conference addressing the public concerns in which he assured that the traditional New Year’s test and Boxing Day test will not be impacted. The revenue generated from this development will benefit everyone, players, states and territories, grassroots pathways, and fans.
“The process will only work if it benefits everyone,” Greenberg said. The report will not be made public, and so far, whether to implement the suggestions or not and what framework will be followed has not been decided yet.
What can change?
Up to 49% stakes in teams could be sold, and the BBL could start later in the year. However, the potential schedule change was dismissed as it would clash with the New Year’s test. CA is closely observing the England Cricket Board (ECB)’s model in terms of franchise rebranding, revenue sharing, safe safeguarding stakeholders’ interests.
The earned money from the investment avenues will be spent on the “future fund” for crisis management. An increase in player salaries to attract bigger names from the world of cricket. Upgrade infrastructure and stadiums.
Who are potential Investors?
Greenberg has received emails from the interested groups talks are in early stages. There is a high chance that IPL franchise owners will expand their portfolio and buy stakes in BBL, as they already have teams in the Caribbean Premier League (CPL), SAT20, ILT20, and Major League Cricket (MLC).
Cricket Australia and Greenberg are at the crossroads: either adopt modern cricket practices and commercialize the league, or stick with traditions and risk losing relevance. Considering in which direction modern-day cricket is going, CA should privatise the league.
With the benefits of involvement of private owners, it also has down downside such as losing control over the schedule and other strategic decisions. In the long term, the benefits of this outweigh the problems caused by this. If Cricket Australia wants to survive in the future of franchise T20 cricket, this is the crucial time to make decisions.
