Cricket Australia seriously considering privatisation to raise up to one billion dollars for the domestic game

Cricket Australia is investigating how private equity could enhance the Big Bash and return the league to its former status as the undisputed No.2 T20 league on earth.

Cricket Australia is seriously considering introducing privatisation to the Big Bash League in a move which could raise in the vicinity of a billion dollars for the domestic game.

It’s understood CA will engage with external consultants over the next six months in a concerted bid to gain a complete picture on how private equity could enhance the Big Bash following the recent sale of England’s eight Hundred franchises for nearly $2 billion.

In addition to opening up a whole new revenue stream for under-resourced State cricket bodies, private equity could also provide the BBL with the war chest needed to properly compete with the player salaries offered by overseas franchise leagues.

Expanding the Big Bash to include a new team or teams from interested regions like Canberra, New Zealand and Singapore is also firmly on the agenda in conjunction with the privatisation discussion and some major decisions about the future of the competition could be made by as early as September.

Mitch Owen was the star of the BBL14 final where the Hobart Hurricanes won their maiden title. Picture: Steve Bell/Getty Images

A review of the eight existing Big Bash clubs is also due in 2026, the 15-year anniversary of the competition, and CA is determined to return the league to its former status as the undisputed No.2 T20 league on earth behind the Indian Premier League.

“The growth and momentum of the Big Bash League over the past three years has reaffirmed the league’s place at the forefront of Australian sport and global cricket,” a CA spokesperson said.

“The question of expansion and private investment is part of an ongoing discussion about continuing to improve and optimise the competition and includes strong consideration of what is best for Australian Cricket as a whole.”

The BBL has experienced a major resurgence over the past two seasons, but data suggests the Big Bash is still only at 70 per cent of where it was in key areas like attendance and viewing before the Covid pandemic.

Australian Adam Zampa playing for the Oval Invincibles in the Hundred. Reliance Industries Limited, the Ambani-owned conglomerate that operates the Mumbai Indians bought a 49% stake in The Invincibles late last year. (Photo by Philip Brown/Getty Images)

Multiple sources have confirmed to this masthead that there is a definite openness to explore privatisation in the BBL in the strongest sign that a landmark change in the history of the competition could be on the horizon.

To this point Cricket Australia has refused to budge on privatising elements of the competition in which it retains full ownership of all the teams.

However, it’s understood incoming chief executive Todd Greenberg and CA Chairman Mike Baird are realistic about the changing landscape of global T20 cricket and are open to the potential benefits and opportunities private equity could bring.

Central to the investigation external consultants and CA executives will conduct over the coming months will be the process the England Cricket Board followed in selling off a 49 per cent stake in its eight franchises, netting a staggering $1.9 billion Australian dollars for the game.

Reliance Industries Limited, the Ambani-owned conglomerate that operates the Mumbai Indians bought a 49 per cent stake in the Oval Invincibles, while companies which run other major sporting franchises like Sunrisers Hyderabad, Lucknow Super Giants, Delhi Capitals and Chelsea football club also bought in as part-owners in England.

Incoming CA CEO Todd Greenberg is understood to be open to the potential benefits and opportunities private equity could bring. Picture: Mark Brake/Getty Images for Cricket Australia

But that’s not to say CA is reacting to what the ECB has done, given Australian cricket has had one eye on privatisation for some time.

One key difference between England and Australia in approaching the prospect of privatisation is Australian cricket is not in a distressed situation like many counties across English cricket.

The fact Australian cricket is in relatively good health means CA can make decisions over private equity from a position where all options are on the table, rather than one of needing to act out of desperation.

There are many different ways to incorporate private equity and CA might not necessarily choose to go down the same path of selling off 49 per cent of each franchise.

The fact Cricket Australia has managed to keep the Big Bash competitive by owning all the teams and paying all the salaries is not to be dismissed lightly and there are many across the game who are still wary of the potential pitfalls involved in introducing private equity.

However, as it stands the Big Bash is simply unable to compete for the signatures of global superstars like Rashid Khan who are choosing the privatised South African T20 League and other cashed-up leagues like the one in the UAE instead.

Originally it was expected some decisions might be made on the prospect of expanding the BBL in February, however those conversations directly relate to the privatisation discussion and will be put on hold until September when powerbrokers across the game will examine the research compiled.

An ACT expansion franchise remains the only official bid on the table, but there has been interest in New Zealand or a region like Singapore, which could be attractive to Indian Premier League clubs.

Originally published as Cricket Australia seriously considering privatisation to raise up to one billion dollars for the domestic game