Deal for English county confirmed after former majority owner Rod Bransgrove sells stake
Nagraj Gollapudi30-Sep-2024The GMR Group, the newly unveiled owner of Hampshire, is “keen and open” to buying a majority stake in the Southern Brave franchise in the Hundred. That confirmation has come from Grandhi Kiran Kumar, GMR’s corporate chairman, who recently sealed a multimillion-pound deal which has made Hampshire the first English county to have overseas ownership.ESPNcricinfo understands that GMR Group’s parent company, GGPL, will initially hold a 53% stake in Hampshire Sport & Leisure Holdings Ltd, Hampshire’s parent company, with a completed 100% acquisition expected within the next 24 months. The overall deal, which was sealed earlier this year, is close to £120 million, half of which is understood to be operating debt. The equity part of the deal is worth £43 million.It is understood that GMR, an Indian infrastructure conglomerate that owns teams in various T20 leagues, including the Delhi Capitals in the IPL and WPL, have paid 53% of that equity amount upfront with the remainder to be be paid in a phased fashion. There is also an incentive element in the deal which is related to the performance component, but the exact nature of how that will work will be worked out by all parties soon.The process does not guarantee GMR’s acquisition of Southern Brave, the Hundred team who play at Hampshire’s Utilita Bowl, though they are clear favourites to acquire full ownership. The ongoing sale of equity in the eight Hundred teams by the ECB will involve 51% stakes being transferred to host counties – in this case, Hampshire – but the process includes a mechanism which would require GMR to pay fair market value for the remaining 49% before that transfer happens.Grandhi told ESPNcricinfo on Monday that the acquisition of Southern Brave was part of his plan. “We will evaluate as we go forward,” he said. “Certainly, we are happy to work with ECB. We are certainly very keen and open.”Jofra Archer is Southern Brave’s star player•Harry Trump/Getty Images
Both parties have stressed that the Hundred was not a significant part of the original plan when Rod Bransgrove, Hampshire’s majority owner, first pitched the idea of selling his 60% stake in the company. It was in June of 2023 when India and Australia were playing the World Test Championship final at The Oval that Grandhi was alerted to a possible investment opportunity in Hampshire.As the months went by, GMR started looking at the opportunity seriously. While the cricketing aspect of the deal was appealing, GMR, whose core business remains in infrastructure, was equally – if not more – attracted to five-star Hilton hotel and golf course at the Utilita Bowl.”We come from an infrastructure background,” Grandhi told ESPNcricinfo. “We are into airports, roads etc. When you see this, it is quite amazing with what they have done. When we visited the facilities, including the hotel, we were impressed.”The entire concept is very nice, especially the fact that it was developed with keeping the fans in mind. Rod [Bransgrove] and his management team have kept the cricketing and sporting culture intact. I was quite amazed with the other facilities like the golf course. It is quite inclusive.”Kiran Kumar Grandhi (left) sits on the IPL auction table•BCCI
Grandhi assured Hampshire fans and members that GMR do not intend to “come and takeover”. He said: “We are looking at this opportunity holistically. The Hundred [opportunity] came only recently. Our discussions with Hampshire started nearly one-and-a-half years ago. When I heard about the opportunity I said, ‘Why not?’ The first six months went knowing each other and become comfortable. The deal happened much later.”The deal makes GMR Group the majority shareholder in the club, after Hampshire’s former chairman, Rob Bransgrove decided to sell his 60% stake in the company. Bransgrove will, however, continue as group chairman until at least September 30, 2026, with David Mann retaining his role as group CEO.While its business focus has been in the infrastructure business, GMR Group made its first major sporting investment in 2008 when it bought Delhi Daredevils. In 2018, GMR sold a 50% ownership stake in the Delhi franchise to Jindal South West (JSW), a fellow Indian business heavyweight. In cricket, the GMR Group also owns the Dubai Capitals franchise in the UAE’s ILT20 and has a stake in Seattle Orcas in MLC.The potential for overseas investment in Hampshire derives from Bransgrove’s original bail-out of the county in 2000, when he secured the club’s move from its 116-year home at Northlands Road in Southampton to the Utilita Bowl, on the outskirts of the city.Related
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In so doing, he converted Hampshire from a members-owned club to what was then known as Rose Bowl PLC, and oversaw the building and development of the venue – which now includes the Hilton hotel and Boundary Lakes Golf Course, with plans for more additions currently under consideration with Eastleigh Borough Council.The Utilita Bowl hosted its maiden Test match against Sri Lanka in 2011, while in 2020, its on-site hotel and remote location made it an ideal venue for the ECB’s bio-secure summer during the Covid pandemic. The ground hosted three Tests against West Indies and Pakistan, and six white-ball matches against Australia and Ireland.”This is the fulfilment of a dream for me and, I hope, for all Hampshire Cricket supporters,” Bransgrove said. “Beyond our team’s accomplishments on the field over the past 24 years, we have transformed our stadium into a premier Test Match and events venue and one of the most exceptional cricket and leisure facilities in the country. We have also been pioneers in the development of women’s cricket and have consistently innovated throughout this relatively short history.”After a thorough selection process, we chose GGPL as our partners due to their shared values and commitment to our vision. We believe GGPL is the perfect organization, with the right people, to build on our proud legacy. Becoming the first English cricket club to join an international cricket group will open exciting new opportunities as we embrace the globalization of this great sport.”Rod Bransgrove (left) and David Mann (right) were GMR’s guests at the ILT20 in February•ILT20
In 2021, Hampshire also hosted the inaugural World Test Championship final between New Zealand and India, again with Covid restrictions, while in 2027, it is due to host its maiden Ashes Test.Richard Gould, the ECB’s chief executive, said that the deal “demonstrates the global interest” in investing in English cricket and underlines “the continuing appeal of county cricket.”Gould said: “This is an exciting time for Hampshire Cricket, and I’d like to welcome GGPL to cricket in England and Wales. 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.”I’d like to thank Rod Bransgrove for all he has done in transforming Hampshire and creating a world-class stadium, and look forward to continuing to work together in his role as Group Chair.”