by The Cricket Council of England and Wales has been warned that its hundreds of manners must be used judiciously to prevent the injection of cash from becoming a “glorified salary loan”.
An participation auction in the eight teams based in the city of the competition increased a remarkable sum during the last fortnight, the global investors demanding shares which came with a total price of around 520 million pounds sterling.
It is the figure that the ECB plans to have at its disposal when it seeks to achieve its objective of refinancing sport for a generation, with around 50 million pounds sterling for the recreational game and the rest to be divided between the 18 First class counties and Lord owners, Marylebone Cricket Club.
Find out more about the investment process of a hundred and what it means for professional and recreational cricket through England and Wales.https: //t.co/jqwmefd5kr
– England cricket board and Wales (@ECB_CRICKET) February 13, 2025
A single blow of 22 to 27 million pounds sterling could prove to be a lifeline for the county teams, but the expert in sports finance Kieran Maguire, who lectures at the University of Liverpool, insists on the fact that it is not a magic remedy.
He thinks that the way money is managed is as important as the final count if it is more than a sticky plaster.
“It is a question of seeing how wisely this victory at the lottery they are going by, because that’s what it is. There is a long-term problem with the sustainability of professional cricket, “he told the AP news agency.
“Certain parts of the game have become increasingly marginalized over the years, with the result that many clubs run at a loss and have in debt. Some of the losses that are suffered are quite substantial.
“When you give a large percentage of future television income, you can consider it and see it as a glorified salary loan. It is easily spent on some vanity projects.
“Unless you fix a new budget for sustainability, we are going to be in a very similar position in a few years. The only thing we know about the history of cricket and finance is that we never learn anything from the history of cricket and finance. »»
The ECB is aware of the concerns about how money could be spent and clearly indicated that there are “daycare rails” that come with the pay day of each county. An edict has already been released that funds should be used for three basic objectives: building reserves, generating income and a debt reduction.
“We want money to be invested rather than” spent “,” said managing director Richard Gould on Thursday.
“We want to make sure it has a long -term impact.”
Doctor Dan Plumley, an expert in sports finance at Sheffield Hallam University, is optimistic about the future given the unexpected scale of the gold rush.
“We can deposit it in” outdated expectations “. The figures are astounding, “he told PA.
“To be fair to the ECB, this competition had its criticisms, but they were optimistic about their targets and these figures are considerably higher than the estimates.
“The ECB is probably justified to harvest some of the rewards and it is a boost for the wider game which is essential. It has the potential to provide a real heritage. »»
As for the guarantee of a practical return on investment, Plumley stressed the importance of clinging to the public of Indian television.
“It’s the same economy model, you need eyes on screens and tramps on the seats. This is motivated by talents on the ground-he is tried and tested in history, “he said.
“When the next television agreement appears, expect a great push around international rights. The Indian market is that to break and, if you can get part of their star talent in the hundred, you can absolutely look at a serious growth potential. »»
Even if it does not happen, it may not be a break. Maguire sees some of these purchases as much through the prism of luxury expenses as clinical vehicles in terms of money manufacturing, citing the 145 million pounds sterling paid by a consortium of Silicon Valley for 49% of London Spirit.
“I think it has been made for 31 times the expected income. When you go to this type of number, you don’t buy it like something other than an trophy asset, “he said.
“Lord’s is the equivalent of the Mona Lisa and, even if it is only yours for four home games per year, it is always an asset that suits them to the ground. I do not think they are investors in the traditional form, in terms of wanting a financial return on an asset.
“It seems to us a lot of money, but, if you look at the assessments of some of these companies, it is a drop in the ocean. It is as if they bought a cricket club instead of another Superyacht. It is visible consumption. »»
