Cricket Australia to consider expanding Big Bash League to 10 teams if franchise sales approved
Cricket Australia said on Wednesday it will explore expanding the Big Bash League to 10 teams if plans to sell some existing franchises are approved, after the board agreed to pursue a hybrid model for private investment.
The board’s move follows an earlier bid for wholesale privatisation that was rejected by the states in April, when New South Wales and Queensland combined to block the proposal. South Australia subsequently proposed an alternative under which the eight BBL clubs would be offered the option to sell stakes without being compelled to do so. Cricket Australia is understood to have made significant progress in building support for that alternative, although the matter may not be put to a formal board vote this week.
If the board does approve the hybrid approach, the sale process would require backing from four of the six states to proceed; Victoria, Western Australia and Tasmania are reported to be strongly in favour. To manage any transaction Cricket Australia has appointed US bank Raine Group to run the sale. The governing body is continuing to test market conditions as part of that preparation.
Big Bash officials held meetings with several Indian Premier League and Hundred owners during a trip to England last month as part of the marketing and investor outreach. Those discussions have, according to the organisation, increased confidence that existing investors are interested in buying into the Big Bash. Initial analysis conducted by Raine is believed to have produced valuations of up to $200m.
The level of investor interest has prompted internal conversations about possible expansion to 10 teams, but those discussions are described as early-stage and Cricket Australia has not identified any new markets. The proposals for private investment and potential enlargement of the competition remain contingent on the outcomes of the sale process and state approvals.
The England and Wales Cricket Board’s recent sales of stakes in the eight Hundred franchises raised almost $1bn last year, with four of those franchises purchased by existing IPL owners. Indian interest in Australian T20 cricket has also been signalled by the decision to take next season’s opening match between the Melbourne Renegades and Perth Scorchers to Chennai.
Cricket Victoria has publicly said it wants to execute a complete sale of the Renegades and is believed to be targeting the Indian market, while the state board will continue to operate the Melbourne Stars. Unlike the ECB’s approach, Cricket Australia would not stage a mass auction if private investment is invited; each state would be invited to sell on a piecemeal basis.
The immediate next step is the board’s further consideration of the hybrid model and, should it grant approval, securing the required support from at least four state boards to kickstart the piecemeal sale process overseen by Raine Group.