The England and Wales Cricket Board (ECB) is forecasting losses of tens of millions of pounds next year despite hosting the Ashes, with county executives told last week that the deficit could be as large as £٥٠m.
The anticipated shortfall, after posting a profit of £١٢.٦m in ٢٠٢٥, is due to a combination of the cyclical nature of the governing body’s media revenues, which is largely determined by domestic opposition, and a recent decision by the International Cricket Council (ICC) to withhold a portion of the broadcast payments owed to members that it had been due to distribute in ٢٠٢٧.
The ECB had noted in its ٢٠٢٥ accounts published in May that it was expecting a “significant loss” in ٢٠٢٧ due to the absence of home matches against India, but that figure is now far higher than expected, which is causing concern among the counties.
Ten of the ١٨ first class counties recorded losses in their most recently published accounts, and the vast majority are reliant on ECB funding to ensure they remain going concerns.
ECB sources have privately acknowledged the scale of the projected losses, but expressed optimism that the eventual figure could be reduced to around £٣٥m, as the amount to be withheld by the ICC has yet to be confirmed and there is still time to add extra commercial and event revenue given the ٢٠٢٧ accounting period runs until ٣١ January ٢٠٢٨.
The ECB is understood to be working with the ICC to mitigate the impact of the reduced distribution.
The ICC’s decision to withhold broadcast payments next year has come as a surprise and is due to concerns over a projected decline in the value of the world governing body’s next Indian TV deal, with its current contracts expiring next year.
The ICC would ordinarily give its ١٢ full members a larger back-weighted media payment in the final year of the broadcast cycle as it coincides with the men’s ٥٠-over World Cup, its most lucrative event in the calendar, but it has opted to withhold a portion next year in anticipation of getting a lower broadcast deal in the next cycle to enable it to smooth the drop in payments to members in ٢٠٢٨.
Disney Star paid US$٣bn (£٢.٢bn) for the ICC’s media rights in India between ٢٠٢٣ and ٢٠٢٧, but after a merger with Reliance Industries and Viacom١٨ in ٢٠٢٤ sought to exit the deal, creating the widespread expectation that it will offer far less in the next cycle as much of the competition has been removed from the market.
The ECB is also hugely reliant on money from Indian TV so has similar concerns about declining revenue, particularly as its current $٢٥٠m (£١٨٥m) six-year rights deal with Sony Pictures expires in ٢٠٢٨, with the expectation that the next contract will be significantly smaller.
Sony’s payments to the ECB are also far higher in years when India tour England, with the £١٢.٦m profit in the ٢٠٢٥ accounts underpinned by that summer’s thrilling five-Test series, and the eight white-ball matches played this summer projected to generate another profit in the ECB’s ٢٠٢٦ accounts. In contrast Channel ٩’s deal for exclusive rights to broadcast Australia’s tours to England in ٢٠٢٧ and ٢٠٣١ is worth only $٢٧.٥m (£٢٠.٢m) to the ECB.
As a result of this imbalance Ashes summers have always been less lucrative for the ECB despite creating more domestic interest, although the financial losses projected for ٢٠٢٧ are still surprising and buck recent trends.
The ECB recorded profits of £١٥m and £٢٣m in the years of Australia’s most recent tours, in ٢٠١٩ and ٢٠٢٣ respectively, and is expecting record ticket sales next summer, although it only received about ٣٠% of gate receipts with the rest kept by the host venues.
Beyond the India issue the ECB is overly reliant on media rights income generally, with about ٧٥% of its £٣١٠m annual revenue coming from broadcast sales. The domestic rights deal with Sky Sports expires in ٢٠٢٨ and its value has not risen since ٢٠١٩, another source of concern in an uncertain media landscape.
The impact of the ECB’s unbalanced revenue streams has been compounded by a significant increase in spending in recent years. The ECB’s central funding to counties increased by ٣١% from the previous cycle to £٥١٢m between ٢٠٢٥ and ٢٠٢٨, while it is also investing an additional £٥m each year on women’s cricket over the same period.
The ECB raised £٥٢٠m from the part-sale of the eight Hundred franchises to private investors last year, but the majority of that money is frozen in an escrow account to be distributed to counties wanting to pay off debt or invest in infrastructure projects. The ECB also has cash reserves of around £٦٠m, which it is aiming to increase to £٨٠m.
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