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In a surprising move, USA Cricket (USAC) field for Chapter 11 bankruptcy on October 1, minutes before its preliminary-injunction hearing related to disagreement with American Cricket Enterprises (ACE). This is the first instance of an ICC member body declaring bankruptcy.
As the hearings came to a pause by USAC's counsel's notification, ACE questioned the timing of the decision.
“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", an ACE representative said as quoted by Cricbuzz.
USA players’ future uncertain
Filing of Chapter 11 bankruptcy means that USAC's finances will be laid bare, including bank cash, accounts receivable, office equipment and other small assets. However, current players' contracts including their international cricketers are in jeopardy. Earlier, ACE had offered to continue bear the payments of players' contracts as per agreement on the condition of USAC accepting a preliminary injunction.
In addition to filing bankruptcy, USAC refused the proposal. Also, it refused to resign, following the suspension from the ICC. At the end of the day, the series of events put a question mark over players' future. Their contracts end on December 31, 2025. There is no clarity over whether they will be paid in full or the payments will be delayed or there will be a deduction after renegotiation.
Since, USAC has field for bankruptcy, the proceedings will not be taken from the Colorado court. The decision will be taken at the federal bankruptcy court.
ICC yet to make a comment
Last month, after ICC suspended the USAC, it had said that the players won’t be affected by it. The ICC is yet to make an official statement after USAC’s strategic move to file for bankruptcy.
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