In June-July next year, the US is set to hold its own Twenty-20 cricket tournament, on the lines of the Indian Premier League. Cricket Holdings America, a joint venture company with five stakeholders, including the United States of America Cricket Association, is initially issuing tenders for six franchisees.
Cricket Holdings America is also looking at the tournament’s potential entertainment appeal to women and children, and a strong overlap with the entertainment industry.
“We have been working on this since two and a half years, talking to multiple cricket boards and trying to make sure we communicate well with all cricket authorities---the International Cricket Council (ICC), New Zealand Cricket, etc,” Cricket Holdings America chief executive Neil Maxwell told Business Standard. “Six licences will be made available and the formal price, as well as other details, will be announced by the end of this month. We will be seeking tenders from companies around the world. We have already received expressions of interest from India, the UK and the US. The process will be concluded by the end of November or early December,” he said.
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Cricket Holdings America expects the average price per franchisee to be about $40 million. “Similar to the IPL structure, the pay-off is expected in 10 years. But our focus would be on profitability. So, we have also put a development grant in place. We expect the franchisees would break even in the second and third years,” Maxwell said.
According to Cricket Holdings America, the US has been cricket’s second-highest broadcast revenue earner, after India, owing to expatriates from major cricket-playing nations. “Cricket has not been tapped in the US yet. So, there is huge opportunity. And, we will be conservative in terms of salaries to players. Teams would have $1-million purses,” said Cricket Holdings America director Rajiv Podar.
In the first edition of the tournament, set to run for three weeks, the six teams would play 19 matches, all in New York. The number of franchises would rise to eight in 2014 and ten by 2016.
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Cricket Holdings America is a joint venture between United States of America Cricket Association (which holds 30.99 per cent stake), New Zealand Cricket (29.01 per cent stake) and Top Bloom Corporation, Podar Holdings International and Insite Organisation, which together hold 40 per cent stake.
The venture is backed by the ICC and supported by many players, through the Federation of International Cricketers Association.