KEY TAKEAWAYS:
- Cricket Australia confirmed the Melbourne Renegades will be put up for sale as part of the BBL privatisation process.
- The Australian Cricketers’ Association insists players must approve any privatisation and wants their revenue share raised to 33 per cent.
- CA and the ACA are far apart on whether private investment proceeds count as Australian Cricket Revenue under the current MOU.
Cricket Australia BBL privatisation explained: $1 billion windfall, Melbourne Renegades sale and what it means for teams
Australian cricket is on the brink of a transformation that could fundamentally change how its biggest domestic competition operates, but the players are making it clear they won’t be left out of the conversation.
Cricket Australia has confirmed it is putting the Melbourne Renegades up for sale, with other franchises set to follow, marking the beginning of what CA has described as a billion-dollar shift for the Big Bash League.
This would see the league move away from board-controlled clubs and toward private ownership, a model already thriving in the IPL and other global T20 competitions. CA believes private investment is the path to making the BBL a competitive product on the world stage.
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Why the ACA says privatisation can’t happen without the players
The Australian Cricketers’ Association, led by Paul Marsh, has made clear that any change of this scale requires player approval before it can be formalised.
Their position is rooted in the Memorandum of Understanding, the binding pay deal that governs the relationship between players and Cricket Australia. The ACA argues that the board cannot unilaterally alter the agreement as it would be tantamount to breaking a legal vow.
CA, on the other hand, believes private investment money falls outside the definition of Australian Cricket Revenue and therefore thinks it can push ahead without the players signing off. Put more simply, the revenue share fight is at the heart of the dispute.
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Players currently receive 27.5 per cent of Australian Cricket Revenue, a figure that has been in place for years. The ACA wants to lift that to 33 per cent. CA and the state associations have pushed back against that jump.
The Australian Players Performance Pool is an arrangement that allows players to earn an extra 2.5 per cent based on performance. Over the past five years, Australian men’s and women’s players have collectively earned around 75 per cent of that pool, which has effectively lifted their share to approximately 29.3 per cent of the overall revenue.
That narrows the gap between where players are now and what they’re asking for, from an apparent 5.5 per cent uplift to closer to 3.3 per cent in real terms. The ACA’s position is that any private investment proceeds should flow to the states and CA, provided players receive 33 per cent of the total revenue pie going forward.
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ACA pushes for independent legal resolution
Marsh wrote to CA chief Todd Greenberg last week to propose an independent resolution process, which is essentially asking for a neutral legal figure to settle the core question of whether private investment money falls under the revenue definition in the MOU.
It’s understood CA has informally indicated it’s open to the idea, which at least suggests both sides want to find a way through rather than let this escalate into a drawn-out legal fight.
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Marsh made clear that CA’s announcement hasn’t changed what needs to happen before privatisation can go ahead.
“We note today’s announcement from CA about proceeding to the next stage of the proposed privatisation of the Big Bash Leagues,” Marsh told Cricinfo. “From the ACA’s perspective, today’s announcement doesn’t change the work that’s required to be done for privatisation of the Big Bash Leagues to proceed. A new MoU needs to be negotiated between ACA and CA and currently we are a long way apart on a possible new deal.
“Despite today’s announcement, Australian cricket cannot proceed with the sale of any teams without the ACA’s agreement. A key issue to be resolved relates to whether or not the proceeds from private investment are captured under the definition of Australian Cricket Revenue. On this matter the ACA wrote to CA last week to propose a process for independently determining whether or not these proceeds are captured under the MoU. This process will form a critical part of the next steps in this project.
“The ACA remains committed to exploring the privatisation of the Big Bash Leagues but will do so on the basis of any deal being good for the game and the players.”
Pat Cummins, Travis Head, Sophie Molineux and Ellyse Perry were present at Tuesday’s media conference at CA’s request. All four have been consulted by Marsh and are understood to be broadly supportive of private investment as a concept.
Responding to Marsh, Todd Greenberg said: “Paul Marsh and I have had good dialogue. Yes, we’re a fair way apart in what the negotiation looks like. We’ve got an MOU that runs through till the end of 2028, so we think we’ve got time. I mean, it’s ironic that what we’re trying to do in this particular model is put more money into the hands of the players.
“We think that’s a fundamental part of this project. So we will find a way through that. I have no doubt about that. I understand Paul’s got a challenge because he’s got a big cohort of players, so that negotiation will unfold. I’m sure we can find a deal together.”
The Australia players are right to hold the line here
Cricket Australia’s desire to grow the BBL through private capital is understandable, and the model has demonstrably worked elsewhere. But the way this has been handled leaves something to be desired.
Announcing a franchise sale before the fundamental legal and financial questions are settled sends a message that CA is more interested in momentum than process, and that approach has a habit of breeding exactly the kind of standoff we’re now seeing.
The players’ demand for a revenue share increase is not unreasonable in the context of what privatisation actually means. Private owners entering the BBL will drive up the league’s commercial value significantly. Broadcast deals, sponsorships and merchandise revenue will all benefit.
If you still want players to remain at 27.5 per cent of a much larger pie while private investors take ownership stakes isn’t a fair deal, and the ACA is right to push back on it.
The independent resolution pathway Marsh has proposed is the sensible path as it takes the dispute out of the boardroom, puts it in front of a neutral party, and gives both sides an outcome they can live with.
CA would be wise to formalise that process quickly, because the longer this drags on without resolution, the harder it becomes to get the privatisation project off the ground at all.
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Source: www.cricketnews.com
