Selling Big Bash Teams May Not Be a Smart Move for Cricket Australia

Cricket Australia's decision to sell stakes in Big Bash League (BBL) teams is a bad idea. While the sale will provide an infusion of cash, it will sacrifice future revenue for a one-time payment. The proceeds must be invested wisely to generate at least the same return as the BBL. The temptation to spend tomorrow's money today can be overwhelming, and the decision should be made with caution. The core fear is that CA will be left behind if it doesn't sell now, but it is unlikely that foreign owners will grow the game in Australia more effectively.

Cricket Australia's (CA) recent decision to explore selling minority stakes in Big Bash League (BBL) teams has sparked debate among stakeholders. While the move promises a one-time cash injection, it also raises concerns about future revenue and control. This article delves into the potential implications of such a sale, drawing from recent market trends and expert opinions.

The proposal, revealed in the Sydney Morning Herald, suggests selling a minority stake in the eight BBL teams to private investors. This move is seen as a response to the increasing global competition in T20 cricket leagues, with the IPL leading the market [1]. The IPL's success has driven up team valuations, with the Gujarat Titans recently sold for around $1.3bn [1].

Proponents argue that private equity investment could bring fresh capital, business acumen, and networks to the BBL, potentially attracting top players and enhancing the league's global standing. However, critics worry about the long-term implications. Former CA head of strategy Andrew Jones has been vocal about his concerns, describing the idea as "the single worst idea in my time in cricket" [1].

The primary concern is the potential loss of future revenue. Private equity investors typically demand a return on investment, which could lead to increased ticket prices or reduced spending on grassroots cricket. Moreover, the BBL's current broadcast deal with Foxtel and Channel Seven is locked in until 2031, making the league's revenue structure less flexible [1].

The timing of the proposal is also contentious. With the BBL's cash reserves set to rise to around $70m after the Ashes Tour, CA may not need external funding to maintain the league's operations [1]. This raises questions about whether the sale is driven by a genuine need for capital or a desire to keep pace with global trends.

The proposed sale also raises concerns about control and strategic flexibility. CA would retain majority control, but private investors could wield significant influence. This could lead to competing claims on any newfound riches, potentially diluting the league's long-term strategy.

In conclusion, while the sale of BBL stakes to private investors could provide an immediate cash boost, it also poses significant risks. CA must ensure that the proceeds are invested wisely to generate at least the same return as the BBL. The temptation to spend tomorrow's money today can be overwhelming, and the decision should be made with caution. The core fear is that CA will be left behind if it doesn't sell now, but it is unlikely that foreign owners will grow the game in Australia more effectively.

References:
[1] https://www.theguardian.com/sport/2025/jul/30/cricket-australia-big-bash-league-bbl-private-equity-sell-off-risk-v-reward