Is it wise or profitable to buy the minority (49%) stake being offered by ECB to own one of the eight franchises in the Hundred? That's the question being asked by owners of almost all of the 10 IPL teams, most of whom are keen to buy teams in the Hundred but not in favour of being a "passive" investor.
An integral part of ECB's privatisation of the Hundred, which launched its fourth season on Tuesday, involves the eight teams being run as a joint venture. The ECB has finalised a model which will leave 51% stake with eight Hundred 'hosts' - seven counties and, in the case of London Spirit, Marylebone Cricket Club (MCC). The remaining 49% will be sold to private investors, which will be finalised by ECB in coordination with the hosts, who have also been given the choice to divest some or all of their stakes before the formal bidding process from mid-September.
But several IPL franchise owners have expressed reservations, especially on the controlling stake which, along with trust, is one of two key factors that determine the success and longevity of any joint venture. It is no different for the Hundred.
"This is going to be new for anyone who's coming in, because in all the other franchise investments, we are 100% owners," said the head of one IPL-winning franchise. "The dynamics of that are very different. Here, it's going to be a joint venture. There's valuation subject, then there's ownership subject, then there's operational matters - all these issues come to the fore immediately."
The official, who declined to be named, said the very fact that there's another partner, whether they have a minority or majority stake, raised a "stumbling block" and "a huge difference" to how their franchises operated elsewhere. "If it is 49 %, who's in charge? Would you want to come in as a pure investor? Probably not. I don't know the answer to that yet.
"But we have been told that control and all those things could be baked in for the investor who's coming in. I don't know that there'll be a great deal of appetite and interest to say, 'OK, here's a cheque. I would like to be a passive investor. Let it run as it is and we'll contribute to the extent we can.' No."
Vikram Banerjee, head of business operations at ECB, was made aware of investors' concerns on his trip to India during IPL 2024, where he met with owners and management at various franchises.
"For a number of them, it's around things like brand," Banerjee said on the subject of control. "For a lot of them it is cricket, and being in control of the cricket side of things and others, pure and simple majority stakes from an equity perspective. So we understand that and we understand where they are at. We have then built that into the process.
"If you look across our eight teams, there will be a variety there that will be on market, and that clarity will be provided when we go to market in September. And that clarity will provide a range that I believe, at this point, will have different offerings that will suit all different kinds. And then as the conversations build, the details will build through October, November, December. We'll get to a really good place by the time the process runs its course."
Among the eight franchises, the MCC and Surrey said they currently have no plans to divest any of their 51% stake in their teams.
Richard Gould, the ECB's chief executive, didn't rule out the possibility of the investors holding a 100% stake subject to their fulfilling various criteria. "There's certainly the opportunity for people to have, potentially, 100% ownership. It depends on the capabilities that they can bring both in terms of finance and operational delivery. Those opportunities do exist."
The ECB had been clear at the outset that the highest bid will not necessarily be the winning one. Banerjee said while there was no denying money was important, the board also wanted partners who were keen to support the growth of the game at all levels.
Venky Mysore, CEO at Kolkata Knight Riders, the defending IPL champions, said the success of a joint venture is determined by the "chemistry" between the investor and the county in the case of the Hundred. Mysore has been at the helm of the Knight Riders group since 2011, and has overseen their buying and establishing teams in the Carribean Premier League, International League T20 and Major League Cricket.
"Like in any joint venture there are legacy issues which will be there in the Hundred, too," Mysore told ESPNcricinfo earlier this month. "The existing shareholder group has existed for 100-plus years, and suddenly, you have a new investor coming in and you are joining hands.
"Ultimately in any joint venture, with my experience, it boils down to the chemistry recipe. It's not the number: it's not about a closed bid and 'here's a cheque' and the highest bid wins. From our perspective and from the partner's perspective who have already spoken with us, it's about that chemistry. Can you work together? Because this is for the long run.
"Speaking for ourselves… we think about it for the long haul. So something like [the Hundred], again, you think about it for the long haul and then say, 'OK, it's a joint venture'. If it has to work, then the people, the chemistry has to be a big determining factor. And those are the risks of joint ventures in general."
Not everyone is chasing a majority stake, though. A CEO at a third IPL team told ESPNcricinfo that since they are just dipping their feet in the Hundred, and doesn't fully understand the business model, they would prefer to buy a smaller stake in a franchise and build on it gradually.
"49% is good enough to begin with," the CEO said. "The key question is how much that 49% constitutes of the overall value. If that number is too huge and I am not sure and I see enough returns, then I would rather take a small share to begin with, with a rider that I would be allowed to take more of a stake with every passing year, or every five years."