Brady’s Knighthead Capital get Birmingham Phoenix
It’s raining millions at the England & Wales Cricket Board (ECB) headquarters lately as another Hundred franchise sells off its stakes. It is understood that Knighthead Capital LLC, which is the partner firm of New England Patriots and Tampa Bay quarterback Tom Brady, has won the bid for stakes in Birmingham Phoenix. Knighthead Capital won a bid of £82 million for 100% stakes in the franchise, which amounts to £41 million for the 49% stakes.
Reportedly, Knighthead submitted a sealed bid, which was allowed by the ECB for franchises with two or fewer bidders, instead of taking part in a live auction. Although CVC Capital, the owners of Gujarat Titans, were also on the shortlist to bid for the Hundred franchise, it is uncertain whether they submitted any price. The ECB, as well as the host county, Warwickshire, have not publicly announced the deal yet.
Warwickshire Club is expected to retain the majority ownership of the franchise (which is 51% of the total valuation) as it now enters a period of negotiations with Knighthead.
The agreement must be submitted within eight weeks after the conclusion of the auction process on February 10. The transfer of stakes will be in place before the start of next season of the hundred-ball tournament.
This is not Tom Brady’s first venture into sports investment. With Knighthead, the NFL quarterback bought minority stakes in a third-category football club, Birmingham City, in 2023. Besides Brady, Manchester United’s co-owner Avram Glazer is also a part of the auction through Lancer Capital. Glazer was on the list of bidders for the most in-demand franchise, London Spirits, whose controlling stakes are owned by the Marylebone Cricket Club (MCC). However, a tech giant consortium won the bid over Glazer’s Lancer Capital on Friday, in what was a three-hour-long bidding war.
Welsh Fire sold in a transatlantic deal
Cardiff-based Hundred franchise, Welsh Fire, has also signed a deal for a total valuation of £67.5 million with US entrepreneur Sanjay Govil, who is also the owner of the Major League Cricket team, Washington Freedom.
Govil has acquired 49% stakes for £33 million, making this deal the lowest among all the sales so far. Welsh Fire’s host county, Glamorgan, were also in talks with Hollywood actors Ryan Reynolds and Rob McElhenny, however, the duo could not make it to the ECB’s shortlist of bidders. As reported by ESPN Cricinfo, Govil went over the Indian company Capri Global’s price to win the bid.
The equity sales process for the franchises began in September last year, and only a select few investors made it to the ongoing final stage of the bids. The ECB shortlisted the suitors in a way that each could only target certain franchises, instead of bidding for all eight. The investors were then invited to submit a binding price, which needed to be higher than a non-binding floor valuation price earlier given by the interested bidders.
Despite facing consistent criticism for their ‘overambitious’ financial motives behind the sales process, the English board has remained stuck to their stance that the amount collected will be used to finance the county teams for the next ‘20-25 years’.
