Latham guides ECB on £520m investment into The Hundred

Latham & Watkins has advised the England and Wales Cricket Board (ECB) on private investment into cricket competition The Hundred, in a first-of-its-kind franchise model for UK sport that's expected to generate more than £520 million.

The deals, announced by the ECB this week, involve the sale of stakes across the short format competition's eight teams, with six now completed and the remaining two set to finalise later this year. The partnerships value the competition’s franchises at a combined £975 million.

The ECB set aside a 51% stake in each team to the professional county clubs at whose venues the teams play, before launching a competitive auction process earlier this year to sell the remaining 49%. Some counties also opted to sell their shares, resulting in majority stakes being taken by outside investors in several teams.

Confirmed deals include Indian conglomerate RPSG Group taking 70% of Manchester Originals, Indian broadcaster Sun Group acquiring full control of the Northern Superchargers, and Washington Freedom - part of the US Major League Cricket set-up - acquiring a 50% stake in Welsh Fire. Other investors include India's Reliance Group and US alternative asset manager Ares Management.

The franchise model marks a significant shift for English cricket, with the £520 million expected to flow into all levels of the sport. A dedicated £50 million is earmarked for investment in grassroots cricket.

Advising

Latham & Watkins advised the ECB on the partnerships, with the team led by London corporate partner Farah O’Brien alongside entertainment, sports & media partners Patrick Mitchell and Rachael Astin.

The firm has been increasingly active in the sports sector, recently advising on new investment into Premier League club Brentford and a San Francisco 49ers-backed consortium’s controlling stake in Scottish club Rangers.