Key Points:
- Lalit Modi, founder of the IPL, criticizes The Hundred’s financial projections.
- Describes The Hundred as a “struggling non-starter league.”
- Claims the £150m valuation of 49% stakes is “unrealistic.”
Former IPL chairman Lalit Modi has launched a scathing attack on the England and Wales Cricket Board’s (ECB) The Hundred competition, calling the franchise sale a “big fat Ponzi scheme.” Modi, who founded the highly successful Indian Premier League (IPL), shared critical insights from the ECB’s confidential investor document in a series of posts on X (formerly Twitter), saying the revenue projections are “overly optimistic.”
Lalit Modi Criticizes The Hundred’s Financial Projections
Lalit Modi’s comments highlighted serious concerns about The Hundred’s future financial sustainability. According to Modi, the ECB’s projections for revenue growth—particularly in sponsorship and broadcasting—are unrealistic. He described The Hundred as a “struggling non-starter league” with numbers that are “definitely not achievable.” Modi pointed out that the projected sponsorship growth looks more like “wishful thinking” rather than a realistic forecast for the competition.
Despite these strong allegations, the ECB has declined to respond publicly.
Rejected $1bn Bid and Franchise Valuation Concerns
Earlier in 2023, Modi was involved in a $1bn (£747m) offer to purchase The Hundred and turn it into a T20 tournament. That offer was rejected by the ECB. Previously, another £400m offer for a 75% stake in the competition was also turned down by ECB chairman Richard Thompson, who stated that it would take a bid of “a few billion” to consider selling.
Currently, the ECB is offering a 49% stake in each of its eight franchises, valuing them at up to £150m each. However, Modi has labeled these figures as “not realistic.” He argued that based on the ECB’s information, the value of a full 100% stake in a team would be between £5m and £9m for franchises outside London, with London-based teams fetching a maximum of £25m.
Optimistic Revenue Projections in the ECB Document
According to the leaked ECB document, broadcast income is expected to rise from £39.8m this year to £107.2m by 2029. Sponsorship revenue is also projected to increase from £5.7m to £22.2m within the same timeframe and is expected to hit £32.6m by 2032.
However, the document also states that “no representation, warranty, assurance, or undertaking is given as to the achievement or reasonableness of any future projections.”
Modi’s Past Controversies
Lalit Modi has been living in London since 2010 after allegations that he tried to rig the IPL auction for two new franchises. He was suspended from his position as IPL chairman and, in 2013, was banned for life by the Board of Control for Cricket in India (BCCI) due to “indiscipline and misconduct.” Modi has consistently denied all the allegations against him.
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