Members’ Forum: February 2024 round-up
Following the Members’ Forum which took place at Emirates Old Trafford on Monday 26 February, Lancashire Cricket would like to provide an update to Members on the topics discussed.
The Forum – with over 100 in attendance in the 1864 Suite and a further 80 watching virtually on Zoom – had a panel consisting of Daniel Gidney (Chief Executive), Mark Chilton (Director of Cricket Performance), James Sheridan (Non-Executive Director) and chaired by Chris Peacock (Board Director responsible for member services and communications).
Daniel Gidney gave an initial update on the Club’s position and a brief overview of what is, and is not, being discussed amongst the counties and the England & Wales Cricket Board (ECB). For ease, we have provided an FAQ document outlining the important topics that are on the table for discussion and others that are not.
Not under discussion
The Club’s CEO explained to members that The Hundred is contracted for 2024-2028 and that during the same period Manchester Originals have a non-exclusive lease to use Emirates Old Trafford for three-and-a-half weeks per year. This is important because it means that Lancashire Cricket can continue to play at Emirates Old Trafford during this period. Furthermore, there are no discussions to reduce domestic red ball cricket from the current 14 matches per season. It was noted that while The Hundred may increase the number of teams from 2029, Lancashire Cricket does not support an increase in length of the window that The Hundred is played in.
Daniel Gidney also confirmed that there are no plans or proposals whatsoever for Lancashire Cricket to offer any shares to a third party, or to sell Emirates Old Trafford, or any other Club assets.
Opportunity being discussed
Daniel Gidney then updated the Forum on what is currently under discussion, both internally as a Board and via ongoing and continuing consultation with the Club’s Membership. It was confirmed that the Club would support it receiving, at no cost, a significant equity shareholding (likely to be not less than 50%) in Manchester Originals Limited, with ECB holding the balance. It was also confirmed that Lancashire Cricket itself would receive a cash injection if the ECB sold any of its stake in Manchester Originals, and that the Club would not have to give up anything to receive this cash windfall. These proceeds could be re-invested into Lancashire Cricket by reducing the Club’s debt, increasing its operating funds and/or being invested in cricket infrastructure (such as Farington or the Indoor Cricket Centre).
James Sheridan - who is also on the Board of Manchester Originals - went into further detail around the overall success of The Hundred competition over the three years since its introduction. He also explained the opportunity that the Club sees in attracting the best partner to help grow Manchester Originals and its fanbase. Mark Chilton – who spoke passionately around his desire for Lancashire Cricket to continue to develop young players, also expressed his support of The Hundred and its aim of becoming the world’s second-best short form tournament after IPL. He explained the strategic opportunity regarding player recruitment which opens up as we work with an external partner. He then updated members on the increasing challenges regarding player contracts, particularly given the number of T20 franchise competitions globally. Chilton specifically referenced the emergence of the American T20 competition (that has seen significant investment by IPL owners and wealthy tech entrepreneurs) as an example of the global competition for players, that is only growing and becoming more challenging.
Questions from Members
Questions were asked by members from the floor, but also submitted in advance for those that were watching virtually. They included how The Hundred and Vitality Blast can co-exist with a greater strategic connection between the First-Class counties and The Hundred franchises, before it was re-iterated that Lancashire Cricket has no plans to sell any part of the Club to outside investors. In response to a question around the profitability of The Hundred, the forum was told that the £1.3m received by the 18 counties from the ECB will move to the county partnership agreement from 2025 which, on this basis, makes The Hundred profitable. It was confirmed that First-Class Counties would continue to receive the £1.3 million payment until the end of the broadcast deal in 2028. There would also be a net financial gain to the Club both as a host venue and a part owner in the Manchester Originals. There would be further costs involved, but increased revenues too. James Sheridan referenced the opportunities around commercial partnerships, as just one example.
Following this, a question was posed relating to the naming of the franchise which plays at Emirates Old Trafford and whether this would change should Lancashire Cricket take greater control. James Sheridan confirmed that there would not be a move away from using the “Manchester” element of the name due to the success of the brand so far in attracting a new audience, albeit this would be a decision for the Originals Board in time. It was also confirmed that counties without a franchise would still receive a windfall and that the Club’s Board does not see their “demise as inevitable” as this will give them the opportunity to adopt a strategy of greater financial resilience. As a Club, Lancashire Cricket fully commits to and supports an 18-county eco-system.
A question was asked whether it was just the Hundred host venues that were being offered this opportunity, with James Sheridan confirming that was correct. He referenced the recognition of the investment of the eight venues that host the competition, such as Emirates Old Trafford, which has helped develop The Hundred and the Club having made a significant investment in a stadium capable of hosting major matches. Another member questioned why the ECB were ‘gifting’ equity in the Hundred teams. Daniel Gidney referenced Richard Gould and Richard Thompson (CEO and Chair at the ECB respectively) – who have significant county cricket pedigree having worked with Surrey for many years and stated that they wanted to return benefits to the game’s key stakeholders.
The Club were asked about if they could leverage the Hundred competition, and its new audiences, to attract new Lancashire members for the future. It was confirmed that the ECB currently control the data for the Hundred ticket purchasers, but Lancashire Cricket want to continue to grow and diversify the Membership. The Club wants to find the next generation of Lancashire members and for those that are coming to the Hundred, to find out more and get involved in Lancashire, attend T20 Blast matches, etc.
The women’s game was also questioned, asking at what level it will continue to be invested in. The Club confirmed that it is currently overinvesting in the women’s game and will continue to do so. The Board see this as an incredible growth opportunity but also want to ensure fair equity between the men’s and women’s game. Daniel Gidney referenced the work done commercially in this space – with support from Hilton and Sportsbreaks.com, who have specifically put funding into the Thunder programme. The Club sees more opportunity to align the women’s Manchester Originals team with Thunder – with the aim of growing its fanbase, but also with a view of increasing women’s domestic attendances at Emirates Old Trafford. The venue also hosts an international women’s fixture in 2025, so this is a key area of focus for the Club.
The final question of the evening was about whether the Club would give members a binding vote as and when a formal proposal has been received from the ECB. James Sheridan reminded members that any decision to be made was not a referendum on the Hundred and confirmed that the Club would follow a consultation process with members, which would continue as often as needed, with the Club’s board making the final decision in the best interests of Lancashire Cricket. In doing this, the Board, as private individuals, would be subject to strict legal obligations – which members in a vote are not subject to – and they would consider detailed reviews on the cricket, financial and commercial aspects of the investment opportunity. As further information emerges, the Club is committed to ongoing consultation with members on the issues concerned. This would continue to be a transparent process, including sharing in a future forum the financial, commercial and resource models that are created to analyse the pros and cons of Lancashire Cricket having a stake in Manchester Originals, alongside an external partner. The Club believes this is a business strategy decision for the Board to make with the best interests of Lancashire Cricket at heart. This is not a decision that either requires or is appropriate for a member vote. However, as previously stated, the Club and Board are committed to ongoing consultation with members on this issue and the outcomes of discussions with the ECB.
AGM Announcement
At the end of the Forum, Chris Peacock announced that the Annual General Meeting (AGM) has been confirmed for Thursday 30 May as part of the T20 double header at Emirates Old Trafford.
Future Forums
The next Members’ forum will take place on Sunday 2 June during the T20 doubleheader at Emirates Old Trafford and will focus on membership categories, voting rights and the Club rules, ahead of 2025 Memberships going on sale in August. It is likely that a further special forum on The Hundred investment process will be held before then – and we will update members on that as soon as we can.