ECB will have financial oversight of Middlesex after misuse of funds

The England and Wales Cricket Board will have oversight of Middlesex’s accounts after imposing a spending plan and handing out sanctions for breaching financial regulations.

Earlier this year, Telegraph Sport reported that the ECB had sought “urgent clarity” from Middlesex over their finances, which saw them record a loss of £952,000 to the end of 2021, which reduced the club’s net assets to £179,000, down from around £2 million two years earlier.

Central to this was an error in pension payments, which saw current and former employees’ pensions underpaid consistently for 12 years. Rectifying the issue cost the club £500,000 at a time when the club was also struggling with the effects of the Covid-19 pandemic.

The ECB investigation found that Middlesex CCC and the Middlesex Cricket Board have “been financially mismanaged over a number of years and is in breach of the ECB Financial Regulations”. In effect, Middlesex have been found to have misused funds provided by the ECB as part of the County Partnership Agreement.

The club were found to have used funds from ECB on their first team that are designed to be spent on player pathways and the recreational game.

Most of the punishments are suspended, contingent on the execution of a business plan over the next two years. The plan requires Middlesex to turn a profit, which it is understood they are still confident of doing, and limits spending on their playing staff.

ECB have reduced payments to the club by £150,000, of which £100,000 is suspended for two years, and has imposed points deductions in the County Championship (24 points), the One-Day Cup and the T20 Blast (two points each), all suspended for two years.

A statement from Middlesex said the club was “extremely disappointed with the outcome of the ECB’s investigation and the sanctions which are imposed upon us moving forwards.

“However today’s announcement from the ECB draws a line under the matter, and we accept their findings that historically, under previous administration, the Club has been poorly financially managed over a number of years.”

The lenient punishment reflects a shift in attitudes at ECB under the leadership of Richard Gould and Richard Thompson, who want to nurture the counties. Seven years ago, Durham were handed heavy sanctions by the ECB in exchange for a £3.8m bailout to manage £7.5m. Durham were relegated from Division One, handed a 48-point deduction for the following season, and stripped of their Test status.

The news of Middlesex’s sanctions arrived on the same day that Durham’s promotion back to Division One for the first time since 2016 was confirmed. At the same time, Middlesex are threatened by relegation from Division One.

Middlesex occupy a unique financial position among the 18 first-class counties, in that they do not own a ground, or any property for that matter. They are tenants of Marylebone Cricket Club at Lord’s, which limits their income streams, and have a “strategic partnership” with Merchant Taylor’s School.