Already faced with suspension from the ICC, the organization was about to undergo a hearing regarding the legality of its termination of a contract with American Cricket Enterprises (ACE).
ACE runs Majot Leagie Cricket and had recently sued Cricket USA for wrongful termination of that long-term commercial agreement.
It is the first known instance globally of an ICC member body declaring bankruptcy.
The bankruptcy filing pauses the ACE case and key decisions now shift to the federal bankruptcy court.
ACE could barely hide their disgust at the move.Per Cricket Buzz twitter, a representative said:
“USAC could not bear for the preliminary injunction hearing to even begin, and knew the result was a forgone conclusion: it had no basis to terminate the parties’ agreement and was recklessly imperiling the success of cricket in the U.S.
“USAC has zero regard for the best interests of cricket and its players, and is only motivated by politics and its directors’ personal agendas”
The bankruptcy schedules make embarassing reading for Cricket USA.
Between the bank cash, accounts receivable, office equipment, other small assets and unsecured claims, there is just over $500,000.
This specifically excludes current player contracts – including several senior internationals some of which end this year, implying those deals are now subject to Chapter 11 treatment along with Cricket USA’s other obligations.
Most crucially, and this backs up the ACE statement, the Cricket USA board also refused to resign, a measure which was specifically requested repeatedly by the ICC and USOPC, to enable smooth passage for governance reforms and facilitate reinstatement of recognition and cash flows from the ICC.
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