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

Lalit Modi, the founder of the Indian Premier League (IPL), has issued a stern warning to franchise owners, advising them against investing in teams from ‘The Hundred.’ Modi’s concerns come after the England and Wales Cricket Board (ECB) decided to open up its team ownership to external investors. He believes the financial projections provided by the ECB are highly unrealistic and could lead to heavy losses for potential investors.

Modi called the ECB’s projections misleading and said the information memorandum is “not worth the paper it’s printed on.” He even compared the entire scheme to a Ponzi scheme, specifically criticizing the projected overseas TV rights.

IPL and Lalit Modi’s Concerns on Misleading Projections

https://t.co/AN6PZ2zgSy

This article by @NHoultCricket is well researched and to the point. Let’s wait and see what responses come from ECB. As currently the IM is not worth the paper it’s printed on. More like a ponzi scheme.

— Lalit Kumar Modi (@LalitKModi) September 27, 2024

The ECB, with help from American investment bankers Raine Group, prepared an 87-page document projecting significant financial growth for ‘The Hundred.’ According to the report, domestic TV rights would grow from £54 million in 2025 to £85 million in 2029. The ECB also expects a massive boost in overseas rights, with American TV rights growing from £200,000 in 2025 to £15 million in 2030, and Indian TV rights rising from £1.3 million to £15 million by 2030.

However, Lalit Modi, using his experience as the creator of the IPL, is not convinced. He raised doubts about these projections, especially about the massive rise in international TV rights. He said these numbers are completely unrealistic and that they don’t match the current global cricket market scenario, which is dominated by the IPL.

Modi stated, “The ECB’s financial projections for The Hundred, particularly beyond 2026, appear overly optimistic and disconnected from reality. The international TV rights figures make little sense, given the global competition from other cricket leagues like the IPL.”

International TV Rights: A Major Concern for IPL Founder Lalit Modi

One of Modi’s main concerns is the overestimation of international TV rights by the ECB. He believes these projections are disconnected from the actual market, especially when leagues like the IPL already dominate global cricket. According to Modi, overseas cricket leagues like SA20 and the Big Bash League have struggled to earn revenue from international markets, and ‘The Hundred’ would face the same challenge.

Modi, the mastermind behind the IPL, warned that expecting such high international TV rights growth for ‘The Hundred’ is simply unrealistic. He said, “If you remove that international rights figure, you remove the sponsorship increase. The international market is a complete hoodwink as far as I’m concerned.”

Domestic TV Rights: Lalit Modi Sees Plausibility but Remains Cautious

While Lalit Modi acknowledges that the rise in domestic TV rights from £54 million to £85 million is possible, he remains concerned about other financial aspects. He specifically pointed out the ECB’s hope for continued sponsorship growth beyond 2027, calling it overly optimistic. Modi believes the ECB is relying too much on unrealistic projections to attract investors.

He also criticized the high valuation of individual franchises, calling them inflated and based on excessive optimism. Modi, with his deep understanding of IPL finances, warned franchise owners to be cautious before investing in such a venture.

IPL Owners at Risk: Lalit Modi’s Warning

Lalit Modi, given his experience as the creator of the IPL, is especially worried about the potential involvement of IPL franchise owners in ‘The Hundred.’ With Indian players not allowed to participate in other overseas leagues, the ECB’s reliance on Indian involvement in ‘The Hundred’ seems risky. Modi warned IPL franchise owners that the ECB’s projections are heavily dependent on Indian investors, and the financial projections lack guarantees.

“My concern now is that they are trying to lure current IPL owners into this non-starter league and build a hype around it that has no justification or guarantees on numbers,” Modi posted on X. His warning to IPL franchise owners was clear: be careful before investing in ‘The Hundred.’

ECB’s Response to Lalit Modi’s Claims

Despite Lalit Modi’s criticism, the ECB remains optimistic about the future of ‘The Hundred.’ ECB chief Richard Gould, in a BBC Radio interview, dismissed Modi’s concerns and defended the league’s financial strategy. Gould said that the ECB has seen strong interest in ‘The Hundred’ from both domestic and international investors. He also added that the revenue generated from franchise sales would be used to secure the future of English cricket for the next 20-25 years.

“We are very confident in the strength of the game in England and Wales,” Gould said. “I don’t recognize his (Modi’s) particular comments. We’ve had incredible levels of interest.”

Conclusion: A Risky Investment According to IPL Founder Lalit Modi

Lalit Modi’s warnings about ‘The Hundred’ highlight major concerns about the financial future of the league. With the ECB banking on optimistic projections for TV rights and sponsorship, Modi believes potential investors, including IPL franchise owners, should be cautious before investing in the tournament. His main criticism lies in the unrealistic growth expectations, especially in international TV rights, which could lead to heavy losses for those who buy into the league.

For franchise owners, especially those involved in the IPL, Lalit Modi’s advice is clear: think twice before committing to ‘The Hundred,’ as the numbers may not be as promising as they seem.

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