CVC Capital Partners in talks to acquire Hundred cricket franchise

CVC Capital Partners is currently negotiating to acquire a franchise in the Hundred, marking a significant move as it would be the first instance of private equity investment in English cricket. The England and Wales Cricket Board (ECB) has circulated sales decks for all eight franchises, with a completion target set for Christmas. CVC is particularly interested in the Oval Invincibles, having attended matches at the venue, although the host club, Surrey, aims to maintain its 51% stake, potentially complicating the deal. The ECB is looking to raise approximately £500 million by selling a 49% share in the franchises, with the London teams estimated to be worth around £300 million collectively. The Invincibles have been notably successful, winning both the men's and women's competitions in recent years, making them an attractive target for investors. However, CVC's previous investments in British sports, particularly rugby, have faced challenges, raising questions about the viability of their involvement in cricket. All ten Indian Premier League (IPL) franchises have shown interest in acquiring teams from the Hundred, with some already in advanced talks. The ECB has also engaged with North American owners and is open to private equity offers, indicating a competitive bidding environment. Prospective buyers must submit their bids by the end of October, with the Raine Group facilitating the process. CVC's interest in the Hundred comes amid a backdrop of financial struggles in other sports, highlighting the risks associated with such investments. The ECB's previous rejection of a £400 million offer for a majority stake in the Hundred reflects its cautious approach to private equity, despite the potential for significant financial returns.