Birmingham Phoenix complete £40 million equity sale with Knighthead Capital

The American investment fund Knighthead Capital has completed a £40 million takeover of Birmingham Phoenix, marking the first finalised transaction in the Hundred's sales process.

Knighthead, the New York-based group, acquired a majority stake in Birmingham City FC two years ago and were successful bidders for a 49% interest in Birmingham Phoenix in late January. The sale transaction was completed on July 15, per paperwork filed to Companies House, and the franchise will be run in partnership with host county Warwickshire.

Tom Wagner, Knighthead's co-founder, has been appointed to the Phoenix board as a director along with colleagues Andrew Shannahan and Kyle Kneisly, both of whom are on Birmingham City FC's board. The legendary NFL quarterback Tom Brady has a small interest in Knighthead but will not serve as a director.

Knighthead's purchase forms part of wider plans to create a 'Sports Quarter' in Birmingham, which would include a new 62,000-seat football stadium. Wagner has already successfully lobbied for government funding for new transport links and said last month that he saw the Hundred as an opportunity to underline his commitment to the city.

"We really, genuinely want to see Birmingham continue to develop and grow," Wagner told the BBC. "The Phoenix is a great way to expand the exposure of the city to a broader, more global audience. It's also a way for us to tie-in to the substantial south Asian community that is here in Birmingham."

Warwickshire and Knighthead will assume operational control of the Phoenix after the 2025 season of the Hundred, which runs from August 5-31. The county will retain four out of seven board seats as majority owners, with Mark McCafferty (chair), Stuart Cain (chief executive), Craig Flindall (strategy director) and Adam Lowe (commercial director) serving as directors.

The ECB initially planned for all eight sales transactions to be signed off by early April but negotiations over paperwork have dragged on far longer than first anticipated. "It is about the 'what ifs'," ECB chief executive Richard Gould told ESPNcricinfo last month. "I hate to think how many sets of lawyers are in on this, but that's what they're paid to do."

ESPNcricinfo has learned that several other transactions are either finalised or close to completion, though it remains to be seen if all eight will be signed off before the 2025 season starts in 10 days' time. Four of the seven other new investors are owners or co-owners of IPL franchises, while the other three are US-based like Knighthead.