It wasn’t too long ago that Surrey were seriously skeptical of The Hundred and worried about how the tournament would affect their successful business.
With control of the tournament now shifting from the England and Wales Cricket Board to the home turf, Surrey can see the potential for growth.
Under new plans laid out, the eight home clubs would be given a 50 per cent equity stake in their respective franchises, giving them a golden windfall that threatens to widen the gap between Test venues and smaller clubs. If they wish, they will be able to generate income by selling their shares to private investors. If the ECB sells its equity, the money will be spread throughout the game.
This is a huge windfall for Surrey given the Oval’s historic name, but chairman Oli Slipper has a different vision. Surrey are lucky with their turnover of £60 million; This puts them in the same financial position as Premier League clubs such as Aston Villa; Excluding revenue from the Premier League’s extensive television rights deals. This frees them from the need to quickly generate income by selling their equity. Instead, the aim is to make Surrey, The Oval’s Hundred team, more recognisable. The Oval Invincibles could be the Surrey Invincibles.
47 years old is a young age for Slipper district chairman. Trump, who was appointed to the post last October, took over from Richard Thompson when he left for the ECB. A former Surrey man who played second-team cricket with Ben Hollioake, he is an Oval man through and through but is fully aware of the challenges of the game in business. He is chairman of Pitch International, a media rights company that buys and sells broadcast deals in cricket and other sports, and acts on behalf of six of the 12 Test-playing nations. One day he understands the challenges faced by doubles and Test cricket in franchise leagues.
“The Hundred is a key component of the domestic TV deal that is cricket’s main funder, so The Hundred is here to stay. We need to embrace this,” he told Telegraph Sport. “The faces cannot stand still. We have to make sure this event has the best players, the best budgets and is the best white-ball showcase for cricket in this country.
“There are some things I want to do. At the moment the teams are 100 per cent in the hands of the ECB. There will be a degree of re-ownership of the venues. That is very important for us in Surrey. Then we can feel that this is our team. “From a brand perspective, hopefully we will have a Surrey-branded team. “We can brand as a team and be part of our cricket eco-system. We sold 125,000 Hundred tickets last summer but I would like this to be something that all members can support. If we can make some minor adjustments to the ownership branding it could be a hugely important product, not just for the game as a whole but for Surrey .”
As Telegraph Sport revealed this week, Hundred will be expanded to 10 teams in the future. Meetings were held last week between the ECB and the counties to discuss the latest proposals; Deloitte estimates the value of the competition would be around £750 million if the ECB decides to sell shares, which is the planned next phase of development.
“The game needs capital. Some districts need investment. We are luckier than most as short-term cash is not something we need at the moment,” says Slipper. “We can take the view that we can fund salaries to take the Hundred team to the next level, so if investment is required it can come from ECB equity in those franchises or other assets that may require some capital in the short term.” It will come from the districts.
“If you sell 50 percent, you give up future income. You then give up their income stream forever. Look at the challenges facing Premiership Rugby for me. They sold large shares to private equity and then claimed this income before the clubs themselves. I’m not against investment but I think we’ll take a cautious view on whether we need it at the moment but other clubs may need some finance for the stadium and selling their equity would give them the chance to raise more capital without taking on more debt.
“There is broad consensus that 10 teams makes sense. I don’t think it will affect the quality of the product on the pitch. I don’t think we will get to 10 very quickly. I think there will be a qualification period. There is also the question of relegation or promotion because the aim is that the whole game will be in the Hundreds in August.” that it will be played.”
Slipper talks about the ECB’s plan to launch the second part of Hundred; The eight leagues below the main division will play this format in August, with the potential for future promotion and relegation. “Until we get information about promotion and relegation or the difference in value between a closed bracket and an open bracket, the game will be decided. The game needs to see more data on what it means in terms of values, we’re waiting for that,” Slipper said.
From his work with Pitch, the pair are aware that cricket faces challenges and that the ECB, like other governing bodies, needs a backup plan. “Franchise cricket is growing. I still believe in the importance of bilateral cricket but we have to make it as relevant as possible. Strictly from a Test perspective, there are only 4-5 very viable Test nations left in the world. The rest will need some funding mechanism to enable them to continue playing and further the growth of Test cricket.
Slipper is speaking before Surrey host a dinner for staff and players to celebrate winning their second successive county title. The red-ball game remains a focus for the club, with membership reaching 19,500 and many signing up for Test tickets and championship cricket. “Many people forget that Test cricket is still the biggest source of revenue for the ECB. 100 per cent of Test cricket is not possible without the County Championship. We must ensure that the championship is a living product. We have had great commercial success over the last few years. “This is a working part of our business model and drives the Test cricket agenda, which is crucial to the economics of cricket in England and Wales.”