The Middlesex County Cricket Club (MCCC) is embarking on a confidential review of its mutual ownership status to establish a sustainable financial foundation for the club based at Lord’s. Sky News has exclusively revealed that Middlesex has engaged Oakvale, a specialized sports and gaming corporate finance advisor, to explore various options, including the potential demutualization and partial sale in the long run.
Prospective investors have already been approached to discuss the preliminary plans. Despite this review, the club has confirmed that there are no immediate plans to relocate or cease activities at Lord’s. The potential demutualization and relinquishing of its member-owned status are not currently at the forefront of the agenda.
The review reflects a broader trend in English cricket, as seen in the recent sale of a majority stake in Hampshire to the GMR Group, which owns the Indian Premier League franchise, the Delhi Capitals. Middlesex’s strategic review coincides with the ECB’s acquisition of £520m from the auction of its 49% stakes in the sport’s eight Hundred tournament franchises.
The sale of the Lord’s-based London Spirit team at £295m, won by a group of American technology billionaires, including executives from Google and Microsoft, has set the stage for financial transformations in cricket. The consortium behind the London Spirit sale might consider investing in the MCCC as well.
The financial windfall from the Hundred sell-off is expected to benefit the MCCC, but its financial standing is weaker compared to other first-class counties. The club pays rent to the Marylebone Cricket Club (MCC) and does not have a direct financial stake in its home ground, making it challenging to exploit its commercial assets.
Established in 1864, the MCCC has a rich history and has produced cricket legends like Denis Compton, Mike Gatting, and Andrew Strauss. The club, currently owned by approximately 7,000 members, operates under mutual status, regulated by the Financial Conduct Authority.
Any decision to change its mutually owned status would require a significant majority vote from the members, making the process complex. Only three professional counties have demutualized to date, with the aim of avoiding financial collapse.
The MCCC’s strategic review aims to ensure the club’s competitiveness and financial sustainability over the next five decades. Oakvale’s analysis will focus on preserving the club’s heritage and the interests of its members and fan base.
A spokesperson for the MCCC declined to provide any comments on the matter.
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