In a shocking and historic development, USA Cricket (USAC) has filed for Chapter 11 bankruptcy, becoming the first-ever ICC member body to do so. The filing came minutes before a preliminary-injunction hearing in Colorado in its legal dispute with American Cricket Enterprises (ACE), the strategic partner behind Major League Cricket. This dramatic step has paused ongoing legal proceedings and shifted control to the federal bankruptcy court, leaving the future of cricket in the USA clouded with uncertainty.
Why USA Cricket Filed Bankruptcy
- Legal Battle with ACE:
ACE, which has invested heavily in U.S. cricket, sought a preliminary injunction against USAC for attempting to terminate their agreement. The bankruptcy filing halted the hearing and gave USAC temporary legal protection. - Governance Turmoil:
USAC has been under suspension by the International Cricket Council (ICC) for repeated governance failures. ICC and the U.S. Olympic & Paralympic Committee (USOPC) had demanded board resignations, but the USAC directors refused. - Financial Struggles:
The bankruptcy schedules show modest assets like office equipment and receivables, with unsecured claims of over half a million dollars. Player contracts, including senior internationals, are listed under Chapter 11, meaning they may face renegotiation or delays.
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ACE’s Reaction
ACE strongly condemned the timing of the filing, saying:
- USAC “could not bear for the preliminary injunction hearing to even begin.”
- The board acted with “zero regard for the best interests of cricket and its players.”
- It accused USAC of being motivated by politics and personal agendas rather than cricket development.
ACE even offered to continue payments under the agreement if USAC accepted a voluntary injunction, but the board refused.
Impact on Players
The biggest uncertainty surrounds player contracts:
| Aspect | Status |
|---|---|
| Contract End Date | December 31, 2025 |
| Current Situation | Contracts fall under bankruptcy proceedings |
| Risks | Payments may be delayed, reduced, or renegotiated |
| ICC’s Assurances | ICC earlier said players wouldn’t be affected, but now fate lies with bankruptcy court |
This has raised concerns for the men’s national team, which had gained momentum after an impressive run in the T20 World Cup 2024 co-hosted by the USA.
ICC and Global Implications
- This is the first time in ICC history that a member board has declared bankruptcy.
- ICC has temporarily taken over management of U.S. national teams to ensure they can still participate in international tournaments.
- The timing is critical with cricket making its Olympic return at the Los Angeles 2028 Games. Any prolonged governance chaos could impact preparations and infrastructure development.
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What Comes Next?
- Bankruptcy Proceedings:
Key decisions now rest with the U.S. bankruptcy court, which will determine how contracts and debts are handled. - Governance Reforms:
Pressure will mount on the USAC board to step aside, paving the way for a restructured cricket body in the U.S. - Future of Major League Cricket (MLC):
With ACE’s investments at stake, the league’s future could be affected if disputes continue. - Possible New Leadership:
There are calls for high-profile figures, such as Indra Nooyi (former ICC board member and ex-PepsiCo CEO), to be brought in to stabilize governance.
USA Cricket’s bankruptcy filing marks a dark chapter in American cricket history, raising serious doubts about governance, financial management, and long-term development of the sport in the U.S. For players, fans, and stakeholders, the coming months will be decisive. The bankruptcy not only halts the legal fight with ACE but also puts the spotlight on whether cricket in the USA can rebuild itself in time for the global stage of LA Olympics 2028.
