Cricket Australia has been told to privatise Big Bash League clubs. This comes after an independent report that followed England’s sale of interests in The Hundred franchises.
The Boston Consulting Group advised CA to sell shares in the eight BBL teams to private investors. Currently all eight BBL teams are owned by state teams. The Sydney Morning Herald reports there are no private investors involved at the moment.
Outside of Australia most major cricket boards have private entities that have helped develop local talent, drawn fans to the ground and made more money for the board.
Sources say the BCG shared its review with CA chair Mike Baird and the six state board chairs via video call. Their financial review said the BBL is doing well but private investment could help it grow. They said investment is key for the league’s growth and for cricket in the country.
The Boston Group believes more money could attract more players with bigger salaries, bigger salaries could change the game for Australian cricket clubs. And that money could go to developing cricket at the grassroots level.
Cricket Australia might take a leaf out of the 1979-1994 Peace Treaty when the Australian Cricket Board (ACB) and Kerry Packer signed a 15 year deal to resolve the World Series Cricket conflict and manage finances which boosted revenue. A similar model for franchises could be the way forward for the region.
The report also suggests not increasing the number of teams from 8 to 10 at the moment as it could lower the value of the teams being sold. The BCG advises keeping any additional teams on hold to keep team values high.
But concrete results won’t be known until the end of the year when Cricket Australia may hold a general meeting to discuss the Big Bash’s future.
There are reports the second franchises from Sydney and Melbourne, the Thunder and Renegades, are thinking of moving to Singapore and New Zealand. But nothing is confirmed yet. And the Canberra team from the Australian Capital Territory could be considered by franchises.
Another idea is CA could sell licenses for new clubs instead of selling full team shares. This would let them keep control over the teams in the future.
This is being taken seriously because it could change Australian cricket. Major private leagues and boards have benefited from this ownership model. The ECB (England and Wales Cricket Board) has made $2 billion from The Hundred.Private owners would want more Australian players in the tournament but CA would sort that out. The BBL currently clashes with Australia’s home Test summer. That will be worked out when new investors come on board.
