Colin Graves embarked on a period of exclusivity with Yorkshire to earn a sensational return after Mike Ashley eventually derailed his rival investment approach.
The search for a 12-month bailout for the embattled county has finally been resolved after club staff were informed the former chairman would return if he produced proof of funds by January 5.
A statement from Graves said: “I am pleased that the board of Yorkshire Cricket Club have accepted my offer on a contractual basis. In doing so the club has agreed to a period of exclusivity until 5 January to finalize minor contractual details.
“Once this point is reached, the membership offer will be presented at the EGM, with a recommendation from the board that this offer be accepted in the best interests of the club.”
Telegraph Sport reported on Tuesday how Graves was close to agreeing a deal despite previously falling out bitterly with the current management.
In a letter seen by this publication, the club’s chief executive Stephen Vaughan admits it has been a “turbulent period for the club in recent years” but that a “more solid financial platform” will bring good times back for “both our men’s and women’s teams”. .
He wrote: “To this point, I can confirm that the YCC Board has agreed a period of exclusivity until 5 January with Colin Craves and Oakwell Capital to secure the financial future of the club and provide the necessary funds to maintain its status in English cricket.
“If successful, the club will convene an EGM for members to approve matters relating to the proposal at the appropriate time.”
Board members opted for the deal despite recent interest from the former Newcastle United owner and Indian investors.
The Graves consortium will set up a limited company that will convert £16.1 million the club owes the Graves family trust into equity capital, saving Yorkshire around £500,000 in annual repayments.
The company will effectively purchase Headingley and give Yorkshire a 99-year rent-free lease of the land, securing its future at the iconic venue.
Graves’ return will most likely mean that he will be reinstated as president and effectively manage the club, subject to the approval of the members at next year’s EGM.
In his internal message, Vaughan adds: “As a board, we have a duty to make sure we do the right thing, first and foremost, for our creditors and our members. “This means that we need to consider all avenues of funding available to us so that we can continue to operate and indeed thrive going forward.”
The Ashley deal would see the entrepreneur buy Headingley Stadium with a sale and lease option, with Yorkshire paying rent to play on a ground they could no longer own. Sir Geoffrey Boycott warned members against the deal at the club’s general assembly meeting earlier this year and described Ashley as a “piranha”. It is claimed that Ashley’s Frasers Group also wants naming rights to the ground as part of a £22 million deal.
This week it emerged that Yorkshire had been given a loan by the ECB to help them get through the winter months. Next year will be a tough year for the club with Headingley not scheduled to host a Test match, which always leaves a big hole in the books.
It’s possible Graves will eventually bring in his own management team. Telegraph Sport reported in September that Graves would own 70 per cent of the purchase deal, while the remaining 30 per cent would be given to other investors, all of whom were said to be “Yorkshire CCC enthusiasts”. A source close to the talks at the time suggested Joe Root’s family was among those being courted as possible backers.
Graves is advised by Andrew Umbers and Oakwell, a sports corporate finance firm with a heavy involvement in rugby union.
In a takeover bid submitted to Yorkshire, the consortium promised to increase revenue at Headingley with more concerts and conference events. Graves and his partners believe they can increase the value of the asset by another 50 percent within five years.
The ECB usually advances clubs’ money during the winter months, bringing forward payments states would normally receive through annual shareholder dividends. However, the board of directors will not be the authority to rescue clubs from financial crisis and provide loans as a last resort without a future plan on the table.
The deal for Ashley was first reported by Telegraph Sport last summer. Graves resurfaced as a potential investor in the autumn but withdrew his offer after attracting little interest from the Yorkshire board.
There was also a brief period when the Rajasthan Royals IPL franchise was interested in a deal to buy Yorkshire, but the deal collapsed due to reservations about the club’s future and concerns about an IPL team having a de facto Test venue in English cricket.
Ashley and Yorkshire refuse to comment on latest negotiations