Major associations open to private investment

Private equity investors can officially add a slice of New Zealand Cricket's major associations to their portfolios.

NZC has signed off participation agreements with the six MAs, which allow up to 49 per cent investment from shareholders in any one province.

No such investment is imminent but it presents an option which may allow MAs to operate more profitably, as NZC looks to financially futureproof itself.

The architect of the revamp has been David Cooper, NZC's general manager of domestic cricket.

"It sets a framework for the competitions and clear roles for NZC and its licensees, particularly around private investment. It protects the game's future."

Talk about overhauling the domestic game stretches back to 2012. In-depth negotiations began in April 2014 but took a hiatus during the build-up and hosting of the World Cup.

The move will supplement the overall master agreement, including scheduling, between the NZC, MAs and New Zealand Cricket Players' Association until midway through 2018.

In addition, that deal encompasses each format of the game being locked into separate windows each season. There will also be an increased focus on promoting and marketing the domestic game and the centralisation of naming rights and uniform branding with NZC, who are deemed better placed to leverage revenue and absorb the risk of finding sponsors.

The invitation to third-party investors was initially met with mixed reaction. Some associations, like Canterbury, were open to investment; others like Auckland were reluctant.

Chief executive Mark Cameron said they had overcome those concerns. They essentially mounted to wanting a measured discussion rather than rushing into change.

"We're pleased with the documents which effectively formalise what we already do. But we must get the product right first. T20 needs to be more marketable. We appreciate the opportunity may exist [to take on investors], but we're going into it with caution. For instance, attendance still has a way to go to present a product an investor might be happy with.

"You don't sell you house until you've painted it. That's why we're thrilled to be filling the Sunday afternoon slot regularly on Eden Park No.2 [capacity approximately 2500] during the Georgie Pie Super Smash."

Previously there had been no participation agreement, meaning there was an assumption teams would keep turning up each season. The document formalises the standards which each MA must meet.

There was also a view the three competitions (four-day, one-day and T20) played a subservient role as development vehicles for the New Zealand team, rather than operating as their own entities in a competitive sports market for disposable entertainment dollars up against the likes of Super Rugby, NRL league, netball's ANZ championship and basketball's ANBL.

However, MAs also recognised the absence of the Champions League might mean less interest in broadcasting T20 cricket without the lure of attending an annual international televised event as incentive.