Row over Lalit Modi’s ‘ponzi scheme’ comment on Hundred

THEThe founder of the IPL, Lalit Modi, has launched a fierce criticism of the England and Wales Cricket Board (ECB), calling its short-format tournament, The Hundred, a "big fat Ponzi scheme."

His remarks come as the ECB expresses optimism about the tournament's financial future, which began in 2021.

Modi's comments highlight concerns about the ECB's financial predictions for The Hundred, which is currently looking for private investment to support its eight teams, reported the Telegraph.

Richard Gould, the CEO of the ECB, responded directly to Modi's claims. He reminded everyone that earlier this year, Modi valued The Hundred at an impressive $1 billion (£800 million) when he suggested buying it.

“I don’t agree with what he’s saying,” Gould said. “We have seen a lot of interest in The Hundred and in English cricket as a whole.”

Modi focused on the ECB's estimates for international broadcast rights, arguing that they are unrealistic.

A document shared with potential investors predicted domestic TV rights would increase from £54m in 2025 to £85m by 2029. It also suggested that Indian TV rights could rise significantly, despite the fact that Indian players are not allowed to play in foreign leagues.

The Telegraph said it is understood that Indian TV rights are projected to climb from £1.3m to £1.8mn per year from 2026 to 2029, and then rocket to £15m per year from 2030.

“The ECB's financial projections, especially beyond 2026, seem too optimistic,” Modi said on social media. He warned that the ECB might be trying to attract IPL franchise owners to join The Hundred, which he described as a "non-starter league" without any real value.

He said, "The international TV rights figures make little sense, given the global competition from other cricket leagues like the IPL."

The Indian businessman previously offered to buy the Hundred.

"Want to clarify about my billion dollar offer," he said on X. "It was to buy out the tournament in perpetuity and the idea was to redo it as a T20 tournament. Not another new format the global audience have ZERO idea about," he added.

"My concern now is that they are trying to lure current @iplt20 owners into this non-starter league and building a hype around it that has no justification or guarantees on numbers. Basically a big fat #ponzischeme."

A Ponzi scheme is a notorious type of investment that pays early investors with money taken from subsequent investors.

Gould, however, countered Modi's worries by stressing the strong interest the ECB has received. Around 100 potential investors are keen to learn more about The Hundred.

“We hope this will lead to a positive outcome,” he said, adding that any money raised will help support county cricket for the next 20 years.

The ECB has previously turned down a £300m offer for 75 per cent of The Hundred from a private equity firm, showing that they hope to get about £500m from the current sale process. Gould mentioned that while they are hopeful, there are limits to what they would accept.

The Hundred has sparked debate within the cricket community because it does not fit into the traditional county system. Supporters say it brings in important TV revenue, while critics, including Modi, question its future success amid tough competition from established leagues like the IPL.

(with inputs from AFP)