by Colin Graves has an exclusive spell with Yorkshire to achieve a stunning return after fending off a rival investment approach from Mike Ashley.
A 12-month search for a rescue package for the under-pressure county has finally been resolved after club staff told the former chairman to back off if he shows proof of money by January 5.
A statement from Graves said: “I am delighted that the Yorkshire Cricket Club board have accepted my offer, subject to contract. In doing so, the club has agreed an exclusivity period until January 5 to finalize contract details.
“Once that point has been reached, the offer will be sent to the membership at CGU together with the board’s recommendation that it be accepted in the best interest of the club.”
Telegraph Sport had reported on Tuesday that Graves was close to agreeing a deal despite falling out acrimoniously with the previous administration.
In a letter seen by this publication, Stephen Vaughan, the club’s chief executive, admits it has been “a turbulent time for the club in recent years” but that a “stronger financial platform” will restore the good times for both the men’s and women’s teams. both”. .
He wrote: “To date, I can confirm that the YCC Board have agreed an exclusivity period until January 5 with Colin Craves and Oakwell Capital to bring in the necessary funds to secure the club’s financial future and maintain their status. within English cricket.
“If successfully completed, the club will hold an AGM for members to confirm matters relating to the offer at the appropriate time.”
Board members opted for the deal despite interest from Newcastle United’s former owner and Indian investors in recent days.
The Graves consortium will create a limited company that will equalize the club’s £16.1 million stake in the Graves family trust, saving Yorkshire around £500,000 in repayments a year.
The company will effectively buy Headingley and give Yorkshire a 99-year rent-free lease on the ground, securing its future at the iconic venue.
Graves is likely to be reinstated as chairman, effectively running the club, subject to member approval at CGU next year.
Vaughan adds in his internal message: “As a board of directors, it is our duty to ensure that our creditors and members do the right thing first and foremost. This means that we need to assess all the means of funding available to us….to be able to continue to operate and indeed be successful in the future.”
Ashley’s deal would see the entrepreneur buying Headingley Stadium on a sale and leaseback option and Yorkshire paying rent to play on a ground they would no longer own. Sir Geoffrey Boycott warned members against the deal at the club’s AGM earlier this year describing Ashley as a “piranha”. It is also alleged that the Frasers Group wanted Ashley’s naming rights as part of a £22 million deal.
It emerged this week that the ECB has lent money to Yorkshire to see it through the winter months. Next year will be a tough one for the club with Headingley not set to host a Test match, which always leaves a big hole in the accounts.
Graves will likely eventually bring in his own executive team. Telegraph Sport reported in September that a buyout deal would see Graves own 70 per cent, with the remaining 30 per cent handed over to other investors, all of whom are said to be “in love with CCC York”. One source close to talks at the time suggested that Joe Root’s family were among those courted as possible supporters.
Graves is being advised by Andrew Umbers and Oakwell, a corporate sports finance firm heavily involved in rugby union.
In a takeover proposal submitted to Yorkshire, the consortium promises to increase revenue at Headingley with more concerts and conference events. Graves and his partners believe they can increase the value of the asset by 50 percent more in five years.
The ECB often advances clubs’ money during the winter months, bringing forward payments that the counties would normally receive through their annual shareholder dividend. But the board will not be a lender of last resort and there will not be clubs bailed out of financial crises without a plan for the future on the table.
The one-off deal with Ashley was first reported by Telegraph Sport last summer. Graves re-emerged in the autumn as a potential investor but withdrew his offer when he received little interest from the Yorkshire board.
There was also a brief period when the Rajasthan Royals IPL franchise was interested in buying the Yorkshire market but the deal fell apart with reservations about the future of the club and concerns in England cricket about an IPL team effectively owning a Test venue.
Ashley and Yorkshire declined to comment on the recent negotiations
