USA Cricket severs ties with strategic partner ACE; risks bankruptcy

USA Cricket has formally terminated its 50-year agreement with American Cricket Enterprises (ACE), the company behind Major League Cricket, following a three-hour board meeting, reported Cricbuzz. The decision, supported by Chairman Venu Pisike and a faction of board members, has created uncertainty around World Cup preparations and financial stability for the organisation that has been under ICC suspension since July 2024.The termination notice was initiated by Chairman Venu Pisike and Board Member David Haubert, gaining support from Srini Salver, Anj Balusu, and Pintoo Shah. This group outvoted opposing directors Nadia Gruny, Kuljit Nijjar, Atul Rai, and Arjun Gona.The original partnership, established in June 2019, granted ACE exclusive rights to operate a premier T20 league in the United States and manage the commercialisation of national teams and cricket infrastructure development.USA Cricket CEO Johnathan Atkeison and legal counsel present at the meeting expressed concerns about the decision. The board's legal counsel indicated that the termination might not withstand arbitration, while an external attorney reportedly labeled the decision as "reckless."The financial implications of this decision are significant. Sources indicate that USA Cricket could face bankruptcy within weeks without ACE's quarterly payments. Since 2019, ACE has provided over $10 million in support for sanction fees, operating costs, and player payments.The dispute primarily focuses on the management and finances of the US National Team. USA Cricket has expressed their desire for Major League Cricket to continue operations, noting that MLC's ICC sanction removes dependency on USA Cricket for continuity.The termination impacts immediate preparation plans for the World Cup. A $700,000 budget and access to MLC venues in Dallas and Morrisville were being arranged to support preparatory fixtures for National Men's, Women's, and Junior programs, including matches against West Indies A and West Indies Women's team in October.The conflict escalated on June 23 when USA Cricket issued a termination warning citing various alleged breaches by ACE. The entity responded in July by addressing these claims point by point, but USA Cricket proceeded with the termination notice without further communication.According to documents reviewed by Cricbuzz, only two claims qualify as material breaches under the termination clause: failure to pay yearly minimum guarantees and failure to construct a high-performance centre. Bank records show ACE has maintained quarterly minimum-guarantee payments.In response to the high-performance centre requirements, ACE stated in their July communication that the facility in Grand Prairie was developed in consultation with USA Cricket leadership. They noted that it "exceeds the standards of high performance centres of most other ICC Associate nations, and has even been deemed of sufficient standard for the ICC to conduct World Cup matches in 2024."