Split board at USA Cricket cuts ties with ACE; World Cup preparations at risk

In a significant development, USA Cricket has formally severed ties with its strategic partner, American Cricket Enterprises (ACE). The national governing body entered a 50-year agreement with ACE, the company behind Major League Cricket (MLC), in June 2019, granting it exclusive rights to own and operate a top-tier T20 league in the United States.

The deal also covered commercialization of the national teams and plans to develop cricket infrastructure in a country with limited dedicated facilities. However, years of tensions repeatedly pushed the partnership to the brink. With the termination notice sent by USA Cricket yesterday following its three-hour board meeting, the relationship reached a breaking point. The board, already operating under an ICC suspension notice since July 2024, was sharply divided.

The proposal to terminate ACE's contract was put forth by Chairman Venu Pisike and Board Member David Haubert, a move supported by allies Srini Salver, Anj Balusu, and Pintoo Shah. Pisike and Salver's differences with ACE have long been public. Balusu, a confidant of Pisike from the Atlanta Cricket League, was elected unopposed after other candidates were disqualified on technical grounds, circumstances similar to Salver's own ascension.

Haubert and Shah, meanwhile, were independent directors whose appointments had Pisike's support. Together, this faction outvoted directors Nadia Gruny, Kuljit Nijjar, Atul Rai and Arjun Gona. Incidentally, Gruny has formally challenged the legitimacy of Pisike as Board Chairman, as per USA Cricket bylaws.Also present were USAC CEO Johnathan Atkeison as well as legal counsel. Multiple sources said Atkeison repeatedly warned supporters of the motion about the consequences of such a move.

The board's legal counsel also cautioned that the termination was unlikely to hold up in arbitration, while the external attorney reportedly went further, calling the decision "reckless." Atkeison also warned the board about the financial impact for an organization already facing constraints. According to multiple sources, USA Cricket could be only weeks from bankruptcy without ACE's quarterly payments.

To compound matters, the ongoing suspension notice means ICC funds remain under the direct control of the world body, leaving the board with few immediate options. Since 2019, sources estimate that ACE has provided USA Cricket with over $10 million towards sanction fees, operating costs, and player payments. Future payments are now in jeopardy.

To note, the dispute largely centers around the management and finances of the US National Team, and USA Cricket has stated that they want to see Major League Cricket continuing. In addition, Major League Cricket is sanctioned by the ICC, removing reliance on USA Cricket for continuity. Nonetheless, ACE is expected to challenge the termination in arbitration, given its investments to date and future investments around the broader American cricket ecosystem. This legal process may cost USA Cricket significantly, further straining the board's finances.

The downstream impact of this action will be significant. For one, capital needed to support the US National Team is now uncertain. USAC and MLC were working on a $700,000 budget and use of MLC's Venues in Dallas and Morrisville to support preparatory fixtures for the National Mens, Womens and Junior programs, including three one-dayers and three T20s against West Indies A scheduled for October, and the USA Women's matches against West Indies in the same month.

The termination now places those matches in jeopardy, and it raises the possibility that USA could enter a World Cup without T20 practice beyond any ICC warm-ups scheduled shortly before the tournament. The immediate standoff can be traced to June 23, when USA Cricket issued a termination warning outlining several alleged breaches by ACE.

ACE responded to USA Cricket in July with a point by point reply to the claims from USA Cricket. USA Cricket did not respond further before issuing the termination notice.However, a review of the term sheet accessed by Cricbuzz indicates that only two claims qualify as material breaches explicitly listed in the termination clause: failure to pay yearly minimum guarantees and failure to construct a high-performance center.

Bank records reviewed by Cricbuzz show that ACE has been making the minimum-guarantee payments to USAC on a quarterly basis. With regards to the high performance center responsibilities, ACE, in its July note to USA Cricket, noted that the High Performance Center in Grand Prairie was designed in consultation with USA Cricket leadership, and exceeds the standards of high performance centers of most other ICC Associate nations, and has even been deemed of sufficient standard for the ICC to conduct World Cup matches in 2024.