Reliance, RPSG, Sun Group: Why IPL Owners Are Buying Stakes in The Hundred Teams

Indian corporate giants are vying for a piece of The Hundred, the 100-ball cricket tournament. Of the eight teams up for sale, at least three have agreed to sell their stakes to India's Reliance Industries, RP Sanjiv Goenka (RPSG) Group, and the Sun Group. 

IPL team Mumbai Indians' owner, Reliance Industries, has won the bid to buy a 49% stake in the Oval Invincibles for nearly £60 million. Meanwhile, Lucknow Super Giants' owner, the RPSG Group, has secured a similar stake in the Manchester Originals for a reported £116 million. 

Additionally, Sunrisers Hyderabad owner, the Sun Group, has paid £100 million for a 100% stake in Yorkshire-based Northern Superchargers. 

A Silicon Valley consortium led by Palo Alto CEO Nikesh Arora has acquired a 49% stake in London Spirit for £144 million. The consortium also includes Microsoft CEO Satya Nadella and Alphabet CEO Sundar Pichai, both of Indian origin. 

What's on the Selling Block? 

In 2024, the England and Wales Cricket Board (ECB) announced plans to sell parts of each team in The Hundred tournament. They planned to sell 49% stakes in each team, while the remaining 51% would be given to the eight host counties, which they could either hold or sell off. So far, stakes in six teams have been sold, with only Trent Rockets and Southern Brave remaining on the market. 

Warwickshire agreed to sell a 49% stake in Birmingham Phoenix to Birmingham City owners Knighthead Capital, while Glamorgan sold the same stake in Welsh Fire to IT entrepreneur Sanjay Govil, both for £40 million each. 

Among other teams, Delhi Capitals owner GMR Group and Gujarat Titans' CVC Capital have also placed bids in the stake sale. 

Why Are Indian Buyers Flocking to The Hundred? 

The short-format league, launched in 2021, received a £400 million bid in 2022 from London-based private equity firm Bridgepoint Group for a 75% stake. However, the bid was rejected to retain majority ownership of the tournament after franchise sales. 

The ECB initially aimed to raise £350 million through the team sales, but the six sales so far have reportedly generated £466 million. According to the sales plan, the proceeds will be split among the 18 first-class counties, the Marylebone Cricket Club (MCC), and grassroots cricket. 

Beyond valuation, corporate firms may also be eyeing potential income from the league. Reports suggest the ECB told potential investors that The Hundred's revenue is projected to grow from £37.8 million this year to £54.3 million over the next four years, including international and domestic broadcast rights and match ticket sales. 

Point to note, The ECB had initially claimed that The Hundred turned a profit in its first two years. However, a report by chartered accountant and former Worcestershire chair, Fanos Hira, revealed that the competition actually incurred a loss of over $11 million during that period.

IPL Team Owners Expanding Overseas 

The trend of IPL franchise owners acquiring overseas teams is not new. Of the ten private IPL owners, excluding Gujarat Titans' owner CVC Capital, all have teams in overseas T20 leagues. For instance, Reliance Industries owns teams in the South African Premier League (SA20), Major League Cricket (MLC) in the United States, and the UAE's ILT20 league.  Meanwhile, Delhi Capitals' owner, the GMR Group, also owns the Dubai Capitals in ILT20 and the Pretoria Capitals in the SA20 league. 

This race appears to be driven by the soaring valuation of the IPL itself. According to a 2024 Brand Finance report, the IPL has been valued at $12 billion. The same report noted that the value of four IPL teams—Chennai Super Kings, Mumbai Indians, Royal Challengers Bengaluru, and Kolkata Knight Riders—has surpassed the $100 million mark.