Yorkshire members told club must ‘demutualise to survive’ and cease member ownership

The Yorkshire chairman Colin Graves has warned members that demutualisation – a move from being member-owned to privately-owned – is “essential” if the struggling club is to survive.

Graves, the former chairman of the England and Wales Cricket Board, returned for a second stint in charge at Yorkshire three months ago, has been exploring the club’s financial options.

He wrote to members on Monday morning that “swift and decisive action” is required, otherwise Yorkshire will spend 2024 “fighting for its survival”. He means demutualisation, which would see Yorkshire cease to be member-owned, as 15 of the 18 first-class counties are (the exceptions are Durham, Hampshire and Northamptonshire). Graves said his intention would be to protect members’ rights despite the changes.

Graves laid out the club’s parlous financial position. Despite hosting a men’s Ashes Test, they recorded a £2.7 million loss, including £1.9 million of “exceptional” (i.e. non-cricketing) expenses. Accumulated losses now stand at £9 million, with further losses scheduled this year as they do not host a lucrative Test. While the county could receive a windfall from the sale of teams in the Hundred, Graves warned that the cash injection would not come soon enough.

He wrote: “Unfortunately, there is no doubt that without swift and decisive action, YCCC will be fighting for its survival during 2024. The Club is approaching borrowing limits and owes crucial operating partners considerable sums, all while being consigned to further financial losses in 2024. We urgently need to take appropriate action to ensure that YCCC is financially stable, fit for the future, and – as I stated at the EGM in February – never put in this position again.

“As discussed at our AGM in April, the Club’s current status as a mutual society continues to prove a blocker to attracting private financing. A demutualisation – thereby converting the club to a private structure, which unlocks potential private investment – appears at this point essential for the Club’s future.

“My firm intention is that members’ current rights are protected and that a demutualisation would represent no change to their current interaction with YCCC. The Club would be better structured to be self-sustaining, still in existence, and to capture maximum value for YCCC from any processes such as The Hundred.

“We are currently engaged in discussions with several credible potential funding partners and are scrutinising them based on their commitment to: i) Yorkshire cricket, ii) our members, and iii) the preservation of our Club for future generations.”

Such a change would require the approval of Yorkshire’s 6,000 members, with the expectation being that 50 per cent would need to vote, and 75 per cent of those voting would need to approve the change.

Graves has a long history with Yorkshire. He bailed the club out in 2002, before becoming ECB chairman. This year, Yorkshire members voted him back in as chairman following one of the most tempestuous periods in the club’s history.

Yorkshire are having a tough time on the field, too. They lost to Sussex at Hove on Sunday, meaning they have failed to win any of their first six games of the season, despite being favourites for promotion from Division Two under the coaching of Ottis Gibson.