USA Cricket Declares Bankruptcy Just Ahead of ACE Legal Showdown

USA Cricket (USAC) filed for Chapter 11 bankruptcy on Wednesday, just before the scheduled preliminary injunction hearing in its case against American Cricket Enterprises (ACE). Cricbuzz reported earlier that the board, chaired by Venu Pisike, was considering this action. This Chapter 11 filing marks the first global instance of an ICC member organization declaring bankruptcy.

In the Colorado court case filed by ACE against USAC, USAC’s legal team informed the court of the bankruptcy filing mere minutes before the hearing was set to start, effectively halting proceedings.

ACE criticized this move and its timing. An ACE representative stated, “USAC could not even allow the preliminary injunction hearing to commence, knowing the outcome was inevitable: there was no valid ground to terminate the agreement, thus endangering the future of cricket in the U.S. Their actions demonstrate complete disregard for cricket’s welfare and are driven purely by political motives and personal agendas of its directors.”

The bankruptcy documentation gives an initial insight into USAC’s financial situation: assets include bank cash, accounts receivable, office equipment, and other minor assets, while unsecured liabilities amount to slightly over half a million dollars. The schedule of executory contracts lists current player deals, including several international players, which have end dates of December 31, 2025, indicating they are now subject to Chapter 11 proceedings along with USAC’s other commitments.

It is also reported that ACE proposed to continue their payments if USAC accepted a voluntary preliminary injunction. This would allow the ACE-USAC agreement to move towards arbitration and ensure payment continuity to USAC while ACE retains its interim rights. USAC rejected this proposal. Furthermore, the USAC Board rejected the ICC and USOPC’s repeated requests to resign, which was suggested to facilitate governance reforms and resume ICC funding.

This bankruptcy filing comes after Cricbuzz reported governance issues on Tuesday, including the recall of Board Director Anj Balasu and the board’s discussions about using bankruptcy as leverage over the ICC. It is unclear if Anj Balasu participated in the vote for bankruptcy declaration.

The future remains uncertain, particularly for players, as their payments might be delayed or renegotiated, now being subject to court decisions. The injunction dispute with ACE will pause pending USAC’s bankruptcy proceedings, shifting key decisions from the Colorado court to the federal bankruptcy court.

Cricbuzz will continue to provide updates as new court filings and responses from stakeholders emerge.