Lalit Modi Warns IPL Owners Against Investing in ‘The Hundred’

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Lalit Modi, the former chairman of the IPL, has raised concerns over the ECB’s recent decision to privatize teams in The Hundred. According to Modi, the financial projections outlined in the ECB’s proposal, especially regarding overseas television rights, are unrealistic and misleading. He shared his thoughts on social media, calling the information memorandum “not worth the paper it’s printed on” and even likened it to a “ponzi scheme.”

Unrealistic Projections for TV Rights

A report by Telegraph Sport revealed that an 87-page document, shared by the ECB’s American investment partners Raine Group, projected a huge rise in the money ‘The Hundred’ could earn from TV rights, both domestically and internationally. The domestic TV rights are expected to rise from £54 million in 2025 to £85 million in 2029, while the international rights projections are even more ambitious.

The ECB estimates that American TV rights for The Hundred could jump from £200,000 in 2025 to £15 million in 2030. Similarly, the Indian rights are predicted to increase from £1.3 million in 2025 to £15 million by 2030.

Modi criticized these numbers, saying they don’t reflect the reality of the global cricket market. 

“The International TV rights figures make little sense,” Modi stated, arguing that it is unlikely The Hundred will attract the kind of international audience necessary to justify these projections. He pointed out that other cricket leagues, like the IPL, already dominate the global market, making it hard for The Hundred to compete internationally.

Overestimation of Franchise Valuation

Lalit Modi also called the ECB’s individual franchise valuations excessive. He suggested that the projections for The Hundred’s future are too optimistic, especially regarding sponsorships and international revenue. 

He was particularly scathing in his comments to Cricbuzz, where he said:

“International rights are worth zero. If you remove that figure, you remove the sponsorship increase. No cricket league, including the Big Bash or SA20, is generating significant revenue from overseas markets.”

Additionally, Modi expressed concerns over the ECB’s reliance on attracting Indian investors, especially with IPL team owners reportedly showing interest in buying stakes in The Hundred franchises. Modi believes the ECB is creating unnecessary hype to lure IPL owners into a “non-starter league.”

The ECB’s ambitious plans have already started, with teams like the Delhi Capitals purchasing a stake in Hampshire and the Sunrisers Hyderabad discussing investment in Yorkshire. However, it remains to be seen if The Hundred can live up to the financial expectations set by the ECB.

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