ISSUE No 9
Bond-Backed Protection for Franchise Cricket
More than bat and ball — contracts, cash, and trust hold the game together.
In my last article, I spoke about the ongoing challenge of poor player payments in franchise cricket. The response sparked some great discourse, and one particular comment led to a deeper conversation that I think is worth sharing.
Nick Elwell reached out, and together we explored an alternative worth considering: a bond-backed guarantee.
Unlike insurance, this isn’t about protecting against accidents or injuries. A bond is guaranteed by an insurance company and can underwrite the most critical costs in a tournament, primarily player and staff salaries. In Nick's professional opinion the structure would work like this:
Franchise owners contract with the insurance company to cover bad debt.
That contract can then be shared with players and agents as proof of security much like how off-plan building projects require bonds before construction starts.
The bond might provide an 80% guarantee that payments will be made, even if an owner defaults.
The cost of this coverage might be around 4% of the guaranteed sum, which could be shared between franchise owners, players, and agents.
The 8-Step Franchise Tournament Process
To see how this could work in practice, here’s a simple framework for how a league goes from an idea to final player payments:
Step 1 – Tournament Ideation: Format, venues, teams, sponsorships outlined.
Step 2 – Governance & Sanctioning: Application League applies to the board, pays sanctioning fee, submits financial plan.
Step 3 – Bond/Insurance Guarantee (Mandatory): Before sanction is approved, the league must secure a bond guaranteeing player and staff payments. Without this, sanction should not be granted.
Step 4 – Franchise Vetting & Sale: Owners vetted for credibility → Franchise fees collected → Contracts issued.
Step 5 – Player Draft & Contracting: Players and staff sign league-issued contracts backed by the bond.
Step 6 – Tournament Operations: Venues, officials, logistics, and broadcast arranged.
Step 7 – Tournament Delivery: Matches played, commercial revenues collected.
Step 8 – Final Player & Staff Payment: Salaries and fees paid out. If an owner defaults → bond triggers → players and staff receive guaranteed payout.
For players and staff, this means peace of mind that their hard-earned salaries are protected. For owners and boards, it means greater trust, smoother sanctioning, and fewer reputational risks.
Of course, this is still a novel idea and there’s plenty to refine. Should the bond only cover salaries, or should logistics and operations be included? Should the league or the board oversee it? Who ultimately pays the premium?
I’d love to hear from other players, agents, administrators, and insurers on how this model could be enhanced. The end goal is clear: a system where every stakeholder in franchise tournaments is protected, and where the game builds credibility through financial discipline.
Big thanks again to Nick Elwell for engaging in this conversation and pushing the thinking forward.
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