Explainer: Have Delhi Capitals just bought Hampshire?

Have Delhi Capitals bought Hampshire?
Not quite. Delhi Capitals are an equal-share joint venture between the sports arms of two Indian conglomerates: JSW Group and GMR Group. GMR bought the Delhi franchise – initially named Delhi Daredevils – ahead of the inaugural IPL season in 2008, and sold a 50% stake to JSW in 2018. GMR are the only relevant party in the Hampshire deal.

So who are GMR, and why have they invested in cricket?
The group describe themselves as “a leading infrastructure developer” who own and manage projects in a number of different areas. They own and run six airports, including Delhi and Hyderabad. GMR says its sports division has the “social objective” of “promoting and nurturing potential talent at the grassroot level” in Delhi while the IPL has proved a lucrative investment: having paid US$84 million for the Delhi franchise in 2008, they sold a 50% stake in 2018 for US$66m.

Do GMR own any other teams?
Yes. GMR are the owners of Dubai Capitals in the UAE’s ILT20, India Capitals in the Legend League Cricket (LLC), and have a stake in Seattle Orcas (MLC). JSW, their IPL co-owners, run Pretoria Capitals in South Africa’s SA20, and the two companies also co-own Delhi Capitals Women in India’s WPL. GMR also own teams in the Indian sports kabaddi and kho-kho.

And have they taken over at Hampshire?
Hampshire announced on Monday morning that GMR have acquired a majority stake – understood to be around 53% – in Hampshire Sport & Leisure Holdings Ltd, and will complete a full acquisition over the next two years. Rod Bransgrove (chair) and David Mann (chief executive) will retain their respective roles during that transition period.

What does this mean for the Hundred?
The ECB started the process of selling stakes in the eight Hundred teams at the start of this month. The proposed model would see the ECB sell 49% stakes in each team to private investors, with 51% transferred to the host venue or county – in Southern Brave’s case, Hampshire.

So will GMR become majority owners of Southern Brave by default?
No, not necessarily. The ECB’s sales process includes a mechanism which gives the ECB discretion over whether or not to transfer 51% stakes to hosts. They could opt to retain it if they feel that an investor is attempting to circumvent the wider sale process or buying a franchise via the back door. “The deal is not contingent on getting a Hundred franchise,” Bransgrove said.

But in practice…?
The ECB have spoken to every IPL and WPL franchise about the prospect of investing in Hundred teams, and GMR appear highly likely to bid for the remaining 49% of Southern Brave as part of the sales process. If GMR’s bid is successful and is considered by the ECB to represent fair market value, Hampshire would then be transferred the other 51% and GMR would effectively become 100% owners of the Hundred franchise.

What’s in it for Hampshire?
Most obviously, money. Hampshire said in their statement that the deal was “designed to strengthen the financial position” of their parent company, which also runs the on-site hotel and golf course at the Utilita Bowl. GMR will provide “a material injection of capital to reduce the leveraging” of the company – in other words, starting to pay off Hampshire’s £60 million debt.

Bransgrove said GMR were chosen after a “thorough selection process” because of their “shared values and commitment to our vision”. The Utilita Bowl has been awarded its first men’s Ashes Test in 2027, and Bransgrove said investment was necessary to ensure Hampshire can stay “at the top table… in a leadership position”.

What do the ECB make of it?
Richard Gould, the ECB’s chief executive, welcomed GMR to English cricket in a statement. Gould said: “I am pleased to see their commitment to continuing to develop Hampshire’s cricket teams and pathways and enhance facilities at Utilita Bowl, and their respect for the traditions of the game in this country.” After recent criticism of the Hundred’s sale from Lalit Modi, Gould said that the deal “demonstrates the global interest” in investing in English cricket.

Didn’t Hampshire do something like this before?
Yes. Hampshire were previously part of a short-lived tie-in with Rajasthan Royals in 2010, which saw them spend four years playing as Hampshire Royals as one of five ‘Royals2020’ teams around the world. The deal was quietly shelved amid a dispute between Rajasthan’s owners and the IPL which briefly saw the franchise expelled from the league.

How long has this been planned?
Hampshire said that the principal terms and conditions of their agreement with GMR were “formally agreed upon by the parties a year ago” and Bransgrove clarified that talks started “the best part of two years ago”. The Telegraph reported in January that the two parties were in advanced talks and in February, Bransgrove and Mann were GMR’s hospitality guests at the ILT20. Discussions have continued through the year, with GMR representatives attending England’s T20I against Australia at the Utilita Bowl earlier this month, and the deal has now been announced publicly.

Will Hampshire’s deal be the first of many in county cricket?
Maybe, although not imminently. Hampshire are one of only three counties – the others are Durham and Northamptonshire – who are private limited companies rather than member-run mutual ‘societies’, though Yorkshire’s chair Colin Graves is attempting to demutualise the club to open up the possibility of private funding.

The majority of counties are heavily reliant on central ECB funding for income and may consider private investment an attractive alternative. “I’m absolutely certain that we will not be the last to go down this route,” Bransgrove said.