Cricket Australia (CA) plans to allow private investments in Big Bash League (BBL), following the example of English cricket, which recently obtained $ 2 billion thanks to team sales in the hundred. An independent examination recommended to explore the sale of minority property stakes.
The Australia Cricket decision to sell participations in BBL teams aims to strengthen its financial reserves, targeting more than $ 100 million. State associations are also faced with financial challenges, states such as New South Wales, Victoria and Queensland not earning direct income from their land.
Meanwhile, the Sydney Cricket Ground (SCG) has been identified as needing major upgrades to improve the spectator’s experience and accommodate future locations without appointment.
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Cricket Australia considers the major overhaul of the BBL after recommendation
According to Sydney Morning Herald, Cricket Australia plans to change major business model which could reshape the Big Bash League landscape, following a recommendation from the Boston Consulting Group.
If the board of directors chooses to sell minority participations in BBL teams to private investors, it would mark the most transformer change in Australian cricket since the Kerry Packer Cricket World Series in 1977.
The main T20 leagues such as IPL, SA20 from South Africa and ILT20 water are already held by business entities and have aroused the interest of global technological companies and investment capital. On the other hand, Cricket Australia has retained full ownership of the BBL teams and has previously resisted private investments.
Cricket Australia resisted private property due to a confrontation of the BBL test season
Cricket Australia avoided the private property of BBL teams due to schedule conflicts. The BBL takes place during the home test season. However, private investors would probably support a separate window that allows Australian test players to participate fully.
Such reshuffle of the summer cricket calendar could disrupt the broadcasting agreements. A recent review by Boston Consulting Group, presented to the president of CA Mike Baird and at the state chairs, recommended that in minority participations in the BBL teams.
This decision could help the League collect funds to offer more competitive wages, making it a more attractive destination for the best international talents that currently promote more paid leagues.
Relocation of thunder and renegades in Singapore or New Zealand under discussion
The report indicates that Cricket Australia is invited to delay the expansion of the Big Bash League until it provides private investments by selling participations in its existing teams. While AC officials are still considering the proposal, discussions have also emerged on a potential overhaul of the league structure.
Among the ideas considered, there is the relocation of current franchises, the Renegades of Sydney Thunder and Melbourne, to new markets such as Singapore or New Zealand. Canberra also expressed his interest, strongly supported by the president of the Cricket Act, Greg Boorers.
The motivation behind these changes is to revitalize the BBL, which has lost importance in the more lucrative T20 leagues in South Africa and in the United Arab Emirates. Another approach discussed is the expansion by issuing new club licenses instead of selling stocks in existing teams.
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