MONEY, MOTIVATION & EXPERIENCE – the importance of Due Diligence

Due diligence is an investigation, or a review performed to confirm facts or details of a matter under consideration. It includes the examination of financial records (money), motivation of those involved and their previous experience, before entering a proposed transaction with another party.

National Cricket Federations (NCFs) continue to receive proposals from potential organisers or sponsors regarding franchise leagues including ‘legends leagues’. While these proposals often speak of boosting sports tourism and supporting cricket development, they can also pose significant risks to the integrity and reputation of both the league and the NCF. Unfortunately, instead of serving as an alternative income source, these leagues can often leave NCFs in financial hardship.

Money, Motivation, and Experience (MME) - issues can arise when these three elements are not adequately addressed. This oversight can lead to poorly organised, last-minute events with unclear financial structures. Such environments foster chaos and, ultimately, corruption.

Thorough due diligence is therefore essential when assessing league proposals. This includes:

• Open-source research: Use online tools, such as Google, to search the company making the proposal and the individuals involved. This may uncover valuable insights about their legitimacy. Where possible, engaging a third-party service to conduct comprehensive due diligence is highly recommended.
• ICC Questionnaire: This is a useful document that forms part of the due diligence. It can be located on page 7 of the Application Form for ICC Sanctioning of Domestic Cricket Event
• Speaking with other NCFs: Speak with NCFs that have previously worked with the organiser or sponsor. If the organiser has no prior experience, this should raise concerns. Conversely, a history of involvement allows NCFs to gain firsthand accounts from peers. Be particularly cautious if an organiser approaches multiple NCFs without clear reasoning for their specific interest. Remember, just because someone has worked with a NCF, this alone is not ‘clearance / green light’ to partner with them.
• Contacting the ICC ACU: Reach out to the ICC ACU to check for any adverse records associated with the organiser or sponsor. Ensure that all relevant details (names, contact details etc.,) are included in your request to facilitate a comprehensive response and guidance.

Identifying Warning Signs: Being vigilant is critical when reviewing league or sponsorship proposals. Common warning signs include:

• A lack of professionalism in communication and documentation.
• High-pressure tactics to sign contracts quickly.
• Promises or commitments that seem "too good to be true" & requests for long agreements, 5-10years or more.
• Proposals with flashy presentations or bold claims but little substance.
• Financial projections that don’t make sense & overall lack of information shared about Money, Motivation & Experience.

Ultimately, protecting the integrity of the sport requires a collective effort. By conducting thorough due diligence, NCFs not only safeguard their own interests and protect their Participants but also contribute to the protection of other Members. Sharing findings with the ICC ACU can help shield the broader cricket community from unscrupulous organisers and sponsors.