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Earlier this month, it was announced that GMR Group, the part-owner of the Indian Premier League franchise Delhi Capitals, had bought the majority of the shares in Hampshire County Cricket Club. At the same time, it was confirmed that they had acquired a substantial minority stake in the Hundred franchise Southern Brave.
Although Indian Premier League sides have flirted with taking ownership positions in English sides—Hampshire themselves had a marketing partnership with the Rajasthan Royals between 2010 and 2013—this is the first time that such involvement has crystallised into something positive.
However, they may not be the last.
The ECB (English & Wales Cricket Board) has made it clear that they are looking for overseas investors in the Hundred and that a two-month period whilst they review expressions of interest is due to begin in September.
What are the motivations, though, for an Indian Premier League franchise like the Capitals to get involved in this fashion?
Since its inception, the Hundred has been financed by the ECB, and, under an agreement with the principal broadcaster in the UK, Sky Television, they are committed to doing so until 2028 at least.
However, compared to other franchise leagues, there remains a disparity regarding the salaries on offer.
The men’s contracts range from ₤30,000 to ₤125,000, while the women's range is between ₤8,00 and ₤50,000.
That compares unfavourably with other franchise leagues. Mitchell Starc, for example, earned ₤2.35 million playing in the Indian Premier League for the Kolkata Knight Riders this season, and his international team-mate Pat Cummins earned ₤1.94 million with the Sunrisers Hyderabad.
In fact, the Hundred only ranks fifth among the richest leagues in the world. Apart from the Indian Premier League, more money is available to players in the Big Bash League in Australia, SA 20 in South Africa, and ILT 20 in the UAE.
Consequently, the Hundred has an issue attracting the best overseas stars, especially on the men’s side.
(There are fewer overseas leagues for women to play in currently, which is why so many Australians have signed up with franchise teams. That also is a factor in why their base salaries are lower).
The fact is that demand for top talent far outstrips supply, and as the number of overseas franchise leagues continues to proliferate, elite players find themselves in a strong bargaining position.
Those who want a Starc, Cummins or Maxwell to play in their League must be prepared to put their hands in their pockets.
The Hundred also has ambitious plans to expand in the future, to increase the number of teams, including sides from all 18 counties, and to introduce a promotion and relegation system.
Although players have expressed some opposition to this plan, concerned about scheduling and the impact on the women’s game, increasing the number of teams from eight to ten remains a short-term objective.
That, though, will take money, and the ECB would rather this come from outside than continue to drain its own coffers.
Even though The Hundred is currently in its fourth season, the competition remains divisive, not least because of its distinctive format. There have been calls for it to revert to a more traditional T20 competition, whilst there have been question marks over its profitability.
A deal to show matches free to air on the BCC expires at the end of 2024, and while the Sky contract runs four years longer, it remains to be seen how many subscribers will be willing to pay to watch matches in the future.
Seeking outside investment is a way of future-proofing the tournament and giving it a sound financial footing.
Indian Premier League teams have not been slow to expand their global footprint, and the Capital's investment in Hampshire and the Southern Brave is part of a growing trend.
For example, when South Africa decided to launch its own franchise league competition, all six licences were sold to existing Indian Premier League teams. This was a deliberate strategy. They knew that the IPL team owners had the financial clout, marketing expertise, and necessary understanding that they were in the entertainment and sports business to make it an instant success (organisers also knew that two previous attempts to found a domestic league had foundered).
Every foremost League worldwide will have teams with some common ownership with the Indian Premier League, from the Caribbean Premier League to ILT 20 to Major League Cricket and beyond.
This is not confined solely to the men’s game. When the clamour for women to get their only Indian Premier League was finally answered, four of the first five franchises were sold to existing IPL teams, one of them the Delhi Capitals.
The Indian Premier League has been a huge commercial and sporting success, establishing itself as the world’s foremost domestic cricket tournament.
However, despite its expansion in length—and plans to do so in the future—it still only lasts two months from start to finish.
Expanding into other territories is a way to keep fan engagement – and revenues – flowing throughout the year.
And it also helps shine a spotlight on leagues that might otherwise fail to attract a broader audience.
A Mumbai Indians fan, for example, can support the team that bears their name in Major League Cricket or SA 20.
It also enables franchises to redeploy staff. Coaches can be contracted for a spell in the Indian Premier League and then moved to work with a sister franchise in another league.
This model of shared resources and synergies is becoming increasingly important in other sports, like football. The City group, for example, now comprises clubs worldwide, which share coaching and technical resources and also move players between them.
It has also given rise to the era of guns for hire, players who move from franchise league to franchise league, often under the same umbrella. For example, Jos Buttler, the England white-ball captain, plays for the Rajasthan Royals in the IPL and the Paarl Royals in SA 20.
This model is currently hampered by the fact that the BCCI does not allow Indians to play in other franchise leagues until they have retired, but should that rule be relaxed in future, it is not inconceivable that entire squads could move around the globe.
India is also now the dominant force in the sport when it comes to generating money, and there is intense competition for Indian eyeballs and the advertising and sponsorship income they generate.
IPL teams have become a brand, and, like all brands, if they are to become a success, they need to grow.
It is worth noting that the Capitals beat off competition from the Lucknow Super Giants to secure their latest investments and the bidding war between the two helped push the price of the shares up.
Meanwhile, the Rajasthan Royals are reactivating plans to buy shares in the Yorkshire Cricket Club.
This is just the beginning of what is likely to become a very fat wedge.
If the Hundred is to survive and prosper, it will likely have been the beneficiary of substantial amounts of Indian Capital and marketing and technical expertise.
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