September 16, 2024

Reynolds and McElhenney see it as a strong Welsh Fire investment

Hollywood actors and Wrexham AFC co-owners Ryan Reynolds and Rob McElhenney have reached out to Glamorgan regarding the potential purchase of a stake in Welsh Fire, the Cardiff-based team in The Hundred.

Since taking ownership of Wrexham in November 2020, Reynolds and McElhenney have celebrated consecutive promotions in the 2022-23 and 2023-24 seasons, bringing the club up to the third tier of English football. They are reportedly looking into additional investments in Welsh sports.

Earlier this month, the ECB officially began seeking private investment for The Hundred. Raine, the American investment bank, has sent out prospectuses to potential investors. Vikram Banerjee, the ECB’s director of business operations overseeing the process, noted there has been strong interest from a wide range of investors.

Sophia Gardens, the home of Glamorgan, has the lowest capacity among all venues in The Hundred. Welsh Fire is anticipated to be the least expensive franchise, valued at about £30 million. Revenue from initial investments will be shared among the counties, but Glamorgan will receive a 51% stake in Welsh Fire, giving them control over the team.

In recent months, Glamorgan has engaged with several interested parties, including the owners of the Pakistan Super League franchise Multan Sultans. However, there is significant interest in the possibility of Reynolds and McElhenney investing, which Dan Cherry, the club’s chief executive, describes as “an exciting proposition”.

Cherry told ESPNcricinfo: “It is a feasible option. Contact’s been made. There’s not been anything substantial come back yet, but we’re in the process and I know that they’ll certainly be included in any process that we’ve got going forward. All bids and offers that are going to come in are going to be interesting to us, and we’re going to have to evaluate what the best bid is for us.

“There’s obvious interest in what Ryan Reynolds and the guys have done at Wrexham, which has been fantastic for football in North Wales. That doesn’t necessarily mean to say that it’ll be the right option for us, but if they’re interested in talking to us, obviously it’s an exciting proposition.”

Most IPL franchises are expected to pursue stakes in Hundred teams, but the ECB is hesitant to follow the SA20’s ownership model, where all teams are owned by IPL franchises. Private equity firms CVC and RedBird Capital are also believed to be interested in the sale process. However, Ineos, which has made significant investments in various sports, including Manchester United, is unlikely to place a bid.

Glamorgan Sees Investment Potential in Welsh Fire Amid Growth Opportunities

Glamorgan sees the Fire’s relatively low valuation—compared to London-based franchises that could be worth four times as much—as an appealing investment opportunity. Since costs in The Hundred are fairly uniform due to the salary cap and most revenue will come from an equal share of central broadcast money, they believe it offers a solid chance for growth.

“We just see the great opportunity here to be part of a nation, not only being great value,” Cherry said. “You’d be representing Wales: Cardiff is a fast-growing city with major events happening here all the time at Principality Stadium, the Castle, and Cardiff City Stadium. It’s a great place to invest, and we believe we’ve got something different to all of the other venues.

“We are really proud of the fact that we are the only Welsh first-class county, and that we are hosting England matches here at Sophia Gardens is important to us. Ultimately, that is something which, when we talk to a potential partner or investor, will be something really important to us: maintaining our Welsh interest, heritage and history.”

Cherry stated that Glamorgan is “very open-minded” and won’t rush into any deals. Currently, they plan to keep their 51% stake in Welsh Fire. He emphasized the importance of making the right choice for both the club and the sport, seeking a partner or investor who will enhance their efforts and provide support without taking control.

“We are keen to build a partnership where people can add value to us as a club… whether it be on the cricket side, around players and coaches and sharing academies, or more on the commercial side. We’re looking for a true partner that can add value – not looking to lose control and sell our soul, as some people would have it.”

Glamorgan has had a mixed first year with Grant Bradburn as head coach, and their season now depends on Sunday’s Metro Bank One-Day Cup final against Somerset. However, Cherry, in his first full season as chief executive, believes the club’s financial situation has improved enough to support growth in Welsh cricket and help them reach more of their goals on the field.

“It’s pretty well documented that we probably haven’t achieved what we would’ve liked to on the field over the last 15-20 years,” he said. “We haven’t produced players to play for England and we spent all of that time in Division Two. The opportunity to be part of the group of people that can hopefully change that is really exciting.

“We’ve had to work through some of the challenges around our finances and the debt profile, but we’re in a much stronger position now financially to be able to now put all of our efforts into trying to improve the cricket side of things. That’s going to be a big focus for me in this role in the coming years.”

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