USA cricket crisis worsens as USAC files for bankruptcy
Key Takeaways
- USA Cricket (USAC) voluntarily filed for Chapter 11 bankruptcy for structural reorganization.
- The bankruptcy filing follows the ICC's recent suspension of USAC due to serious breaches of membership criteria.
- Internal board conflict occurred, with four directors protesting the focus on bankruptcy over discussing the ICC suspension before leaving the meeting.
- USAC cites a long-term, financially burdensome contract with its commercial partner, American Cricket Enterprise (ACE), as a primary reason for the financial strain.
- The 2019 ACE contract is alleged to have been negotiated without full disclosure of conflicts of interest by a former USAC board member.
The crisis within USA Cricket (USAC) has escalated as the organization voluntarily filed for Chapter 11 bankruptcy for structural reorganization, asserting it is vital for the future of American cricket. This development occurred shortly after the ICC suspended USAC on September 23rd for failing to meet membership criteria, with the ICC warning against undermining their work, including preparations for the LA28 Olympic Games. USAC's CEO indicated that addressing the ICC suspension was a motive for the financial restructuring, though the board's authorization process remains unclear, marked by internal dissent. Four directors reportedly left a board meeting in protest after the chairman dismissed discussion about the ICC suspension, prioritizing the bankruptcy filing. USAC attributes the need for reorganization partly to a long-term, allegedly unfavorable 50-year contract signed in 2019 with its commercial partner, American Cricket Enterprise (ACE), which heavily favors ACE and was negotiated with undisclosed conflicts of interest by a former board member.
