USA Cricket Files For Bankruptcy Amid Dispute With Former Strategic Partner

USA Cricket has filed for bankruptcy shortly before its court hearing with American Cricket Enterprises, until recently its strategic partner to operate Major League Cricket, in a bid to achieve “governance reforms” ahead of the Los Angeles Olympics.

The embattled governing body, under suspension by the International Cricket Council, filed under Chapter 11, Subchapter V of the U.S. Bankruptcy Code.

It is believed to be the first time an ICC member has filed for bankruptcy and means a pause of the hearing with American Cricket Enterprises, a private consortium that has invested $150 million into domestic cricket and has a goal for the U.S. to boast 10 international cricket grounds by 2030.

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But USA Cricket said the original 50-year agreement “heavily” favored ACE and was “negotiated largely by one USA Cricket Board member who did not disclose certain conflicts of interest that both he and his employer had with ACE affiliates”.

“This Chapter 11 filing is a decisive move to secure our ability to address the patently inequitable contracts of the past, correct our financial situation, achieve governance reforms and finally build the world-class NGB America deserves, with an eye toward LA 2028,” USA Cricket chief executive Johnathan Atkeison said.

It is the latest twist of a dispute feared to undermine cricket’s development in the sport’s number one target growth market.

Selected in grandiose fashion back in 2019, private consortium ACE was set to invest more than $1 billion into the development of cricket domestically in the U.S. with the flagship being MLC, a lucrative T20 domestic tournament hoped to ignite the bat and ball game in the world’s biggest sports market.

“USAC could not bear for the preliminary injunction hearing to even begin, and knew the result was a forgone conclusion,” ACE said in a statement.

“It had no basis to terminate the parties’ agreement and was recklessly imperiling the success of cricket in the U.S. USAC has zero regard for the best interests of cricket and its players, and is only motivated by politics and its directors’ personal agendas.”

There is a sense of urgency on the situation that is quickly spiralling out of control due to the Los Angeles Games, where cricket will make its Olympic return after 128 years, fast approaching.

The ripple effects could have implications into the proposed stadium for the Los Angeles Olympics – as I first reported in August.

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The continual tumult in American cricket just keeps dragging on, despite USA Cricket finally being suspended after repeated warnings.

USA Cricket was given three months to address its governance issues – as I first reported in July during the annual meetings in Singapore – before the ICC finally ran out patience and issued a suspension for “repeated and continued breaches of its obligations”.

The ICC is temporarily overseeing the management and administration of the national teams, who can compete in major events including next year’s T20 World Cup.

But the uncertainty is understandably providing headaches for U.S. national players, potentially undoing recent improvement marked by a stirring performance by the men’s team on home soil at last year’s T20 World Cup.

If this current saga can be resolved, there is hope that a new U.S. cricket board can be set up with proper governance. There could be a push for a high-profile figure to head an interim USA Cricket board ahead of such a crucial period.

Indra Nooyi, the legendary former PepsiCo boss, could emerge as an option. She was the first-ever independent woman director on the ICC board when she joined in 2018, but finished up on the board last year after three terms and has still not been replaced.

There is a long history of tumult in American cricket, with USA Cricket Association – the previous governing body – expelled in 2017 after being suspended three times before that.