Tom Brady set to begin association with cricket courtesy of latest acquisition

In addition to minority ownership in Las Vegas Raiders, Birmingham City FC, Tom Brady makes a foray into cricket with latest acquisition.

Tom Brady set to begin association with cricket courtesy of latest acquisition

Tom Brady’s partner firm Knighthead placed a £82m winning bid for Birmingham Phoenix (Images via Imago/ESPNCricinfo)

Knighthead Capital Management LLC, NFL legend Tom Brady‘s partner firm, has secured a stake in Birmingham Phoenix, a cricket team playing in The Hundred. The investment firm placed a winning bid of £82 million on the opening day of the ECB’s sale of the eight Hundred franchises.

The £82 million represented 100% of Birmingham Phoenix’s value, meaning that Knighthead will pay around £41 million for a 49% stake in Phoenix. The company Knighthead hasn’t commented on the deal as of now. The English Cricket Board and the Warwickshire county are also yet to make a statement on the deal.

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The seven-time Super Bowl winning quarterback’s association would be much-needed support to this newest form of cricket. The sport, which has been trying to widen its global presence, will also reap intangible returns on the association.

Not so long ago, Brady had acquired minority stakes in another club in the locality, the Birmingham FC. The soccer club, although suffered a huge drop after being relegated last season, has maintained a strong fanbase and an increase in viewership after the latest investments.

The ECB used a sealed bid process to sell franchise stakes. Knighthead was declared the winner in a contest with only two shortlisted investors. Global fund manager CVC Capital was initially on the shortlist, but it is unclear if they submitted a bid.

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The next step is to finalize the agreement within eight weeks following the ECB’s auction, set to conclude on February 10. This will involve deciding whether to make the payment upfront or in installments over five years.

The Silicon Valley Consortium splurges on London Spirit

A consortium of Silicon Valley executives, including Alphabet CEO Sundar Pichai, Microsoft Chairman and CEO Satya Nadella, Adobe CEO Shantanu Narayen, Palo Alto CEO Nikesh Arora, and Silver Lake co-CEO Egon Durban, expressed interest in acquiring The Oval Invincibles.

London Spirit lifting the Hundred trophy in 2024
London Spirit lifting the Hundred trophy in 2024 (Image via Open Source/X)

CVC Capital, which owns 2022 IPL winners Gujarat Titans, had also placed a bid on the Oval Invincibles. However, Reliance Industries Ltd. bagged the Surrey-based team for about £123 million. RIL placed the highest bid in a live virtual auction, a process set by the ECB, to decide the winner when more than two investors were shortlisted.

After missing out on Thursday, they aggressively pursued London Spirit, competing against LSG owner Sanjeev Goenka, Manchester United co-chairman Avram Glazer’s Lancer Capital, and Cain International, led by Chelsea director Jonathan Goldstein and backed by club co-owner Todd Boehly. In the final stage, it was a head-to-head battle between RPSG and the Silicon Valley group, with the latter ultimately emerging victorious.

A knock-on effect is expected, as those who missed out can still bid for stakes in the remaining teams. Goenka, initially favored to secure London Spirit but finishing as runners-up, is now likely to shift focus to Manchester Originals. If that happens, the target price of £100 million for a 49% stake in the Originals could be exceeded when it goes to auction on Monday.

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Meanwhile, Welsh Fire had significant delays due to the bidding war for a partnership with MCC. However, the deal was ultimately secured by tech entrepreneur Sanjay Govil, owner of Washington Freedom in the USA’s Major League Cricket at £67.5 million, making it the lowest-priced of the four sold so far. The remaining four shall undergo sale in the coming week.