£40m Blues owner investment backed to help safeguard cricket's future

Blues majority stakeholders Knighthead Capital have been confirmed as the preferred bidders for a 49 per cent stake in the Edgbaston-based Hundred franchise, the Birmingham Phoenix. 

The group will now enter a six-week period of exclusive talks with the Bears and the ECB in order to complete the deal. 

Warwickshire will retain a controlling stake and take control of cricket operations, allowing a closer link-up with the Bears men’s and women’s teams on player development and selection.

The Phoenix are among five of the eight Hundred franchises to have so far secured bidders in a sale of equity which represents a landmark moment in the English domestic game.

In an open letter to Warwickshire members, Cain explained how Knighthead had emerged from a group of 15 initial expressions of interest. It is understood the group prevailed in a sealed-bids auction after three rounds of negotiations.

The ECB insists welcoming private investment into the sport will boost the recreational game, which will receive around 10 per cent of the overall proceeds.

Cain backed up this message when he wrote to members: “The money raised from the sale will help safeguard the future of recreational cricket as well as the eighteen first-class counties, which is good news for the County Championship and young, local players looking to develop a career in the game. 

“It also allows us to take a fresh look at several infrastructure projects, including how we finance the re-development of the Raglan and Family Stands with an integrated Radisson Red hotel, and improve the men’s and women’s playing facilities to support our ambitions for on-field success.”

Cain continued: “I said at last year’s Members’ Forum that we wanted an investor committed to the region who understood the Bears’ tradition, wanted to work with us for the long term and make a real difference on and off-the-pitch. 

“I believe we’ve found that in Knighthead and look forward to working with them during this exclusivity period before finalising the deal.”

Knighthead, controlled by hedge fund manager Tom Wagner, has made no secret of its ambitious plans for the club and the wider region since completing a takeover of Blues in 2023.

It has already unveiled plans for a new 60,000-seater stadium, while Wagner this week explained how he wants to build a transportation tunnel from New Street railway station to the new venue. 

Wagner said: “We are excited to enter exclusive negotiations with Warwickshire CCC and the ECB to invest in Birmingham Phoenix.

“The Hundred represents a significant growth opportunity, and we look forward to providing our resources and expertise to enhance Birmingham’s status as a world-class sporting destination.”