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In a move no one in international cricket ever expected, USA Cricket (USAC) has filed for Chapter 11 bankruptcy protection, becoming the first known ICC member board to take such a step. This extraordinary turn of events marks not just a financial crisis, but a governance and existential inflection point for cricket in the United States.
The Breaking Point: Dispute With ACE
At the heart of the crisis lies a bitter breakdown in the long‑standing partnership between USA Cricket and American Cricket Enterprises (ACE), the entity behind Major League Cricket (MLC). The contract, signed in 2019, was meant to be a backbone of U.S. cricket’s commercial and operational architecture. But over time tensions built over what USAC alleges were repeated contractual, fiduciary, infrastructure, and governance failures by ACE.
In its August 2025 announcement, USA Cricket cited “multiple material breaches” by ACE, including failure to pay national team and staff salaries, lack of promised infrastructure development (6 ICC‑grade venues by 2025, only one delivered), interference with sponsorships and broadcasting rights, and restrictions on USAC’s independent operations.
The Legal Bombshell: Bankruptcy Filing Halts ACE Lawsuit
According to News18, USA Cricket filed for bankruptcy just minutes before a scheduled preliminary injunction hearing in its ongoing dispute with ACE, the organization behind Major League Cricket (MLC). The legal battle stems from USAC’s decision to terminate its long-term agreement with ACE, citing repeated contractual violations.
ACE, however, strongly opposed the termination, calling it "reckless" and politically motivated. The company accused USAC of "zero regard for the best interests of cricket and its players" and claimed that the board acted out of personal agendas, not genuine concern for the sport.
With the bankruptcy declaration, all legal proceedings were paused, shifting the conflict to the oversight of federal bankruptcy court a move many experts see as a strategic attempt to stall litigation and regroup under court protection.
Why Did USA Cricket File for Bankruptcy?
The move is not merely a legal tactic it reflects deep-rooted problems within USAC. According to a detailed report by CricketMan2, the reasons for filing Chapter 11 include:
Legal Pressure from ACE
ACE filed for legal action against USAC over what it claims was an "improper termination" of the 50-year partnership. USAC claimed that ACE failed to meet key obligations, including payments to players and support staff. ACE argued the opposite that they had offered more than what was contractually required.
Financial Instability
Bankruptcy filings revealed that USA Cricket had unsecured claims exceeding half a million dollars, while holding only modest assets such as office equipment and accounts receivable. Player contracts were also listed under Chapter 11, suggesting potential renegotiations or delays in payments.
Governance Failures
Governance has been a long-standing issue at USAC. The organization is currently under suspension by the ICC due to internal conflicts, poor transparency, and an inability to meet basic standards of administration. Despite calls from the ICC and the U.S. Olympic & Paralympic Committee (USOPC) for the resignation of board members, USAC’s leadership has refused to step down — creating a further impasse.