New Report Reveals Financial Vulnerability of English Cricket’s First-Class Teams

A recent report by Leonard Curtis Cricket Finance has shed light on the precarious financial situation of England’s first-class cricket teams, revealing that up to six counties were on the verge of collapse before the sale of Hundred franchises. The report, which analyzed the finances of 18 counties over a decade, found a significant gap between the most successful teams and the less well-off.

According to the report, the three most profitable teams – Surrey, Lancashire, and Warwickshire – generated 44% of the total income, while the three poorest counties – Leicestershire, Derbyshire, and Northamptonshire – accounted for just 5.56%. The report’s co-author, Professor Rob Wilson, warned that the counties’ reliance on ECB funding makes them technically insolvent, and that the arrival of Hundred money is a crucial turning point in the domestic game.

The report notes that the ECB’s annual payment to counties, totaling £88m in 2023, made up 27% of their combined income. However, this funding is not evenly distributed, with Surrey receiving just 6% of its income from ECB funding, while Northamptonshire and Leicestershire rely on it for 71% and 67% of their income, respectively.

The report suggests that the counties’ financial sustainability is threatened by the potential reduction in income from domestic and international media rights sales. However, the sale of Hundred franchises has generated £520m, which could help alleviate some of the financial pressure.

Professor Wilson emphasized the importance of prudent management of the Hundred money, warning that if the counties waste it, they will be unable to recover. He also highlighted the need for the ECB to ensure that the money is distributed effectively to prevent financial instability.

The report’s analysis of competitive balance in domestic cricket is also concerning, with a declining trend observed over the past decade. This, combined with the significant disparity in financial resources between counties, raises concerns about the long-term sustainability of the sport.

The report’s findings also highlighted the stark contrast in financial resources between counties. For example, Durham’s annual spend on staff salary costs was almost the same as Surrey’s (17% and 18% respectively), but their total salary bill was £1.39m, compared to Surrey’s £11.6m. This disparity in financial resources is a major concern for the sport, as it creates an uneven playing field and makes it difficult for teams to compete on equal terms.

The report’s conclusions are based on a detailed analysis of the financial data of the 18 counties, which included:

Total income: £306.13m in 2023

ECB funding: £88m in 2023

Debt held by counties: £338.6m in 2023

Revenue generated by Hundred franchises: £520m

The report’s recommendations for the ECB and the cricket community include:

Implementing a more equitable distribution of ECB funding to prevent financial instability

Ensuring that the Hundred money is managed prudently to avoid waste and ensure long-term sustainability

Addressing the disparity in financial resources between counties to create a more level playing field

Implementing measures to improve competitive balance in domestic cricket

The findings of the report highlight the need for the ECB and the cricket community to address the financial vulnerabilities of the first-class teams and ensure that the sport remains competitive and sustainable in the long term.