USA Cricket Files for Bankruptcy Amid Governance Crisis and ICC Suspension
The turmoil engulfing USA Cricket (USAC) has deepened significantly after the national governing body filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code, citing the need for a structural and financial reorganisation to secure the future of cricket in the United States.
The move comes just days after the ICC suspended USAC on September 23 for multiple breaches of membership criteria, casting serious doubts over the sport's administration in one of the world's emerging cricket markets — especially with the LA28 Olympics on the horizon.
In a statement released Wednesday, USAC described the bankruptcy filing as a “necessary, aggressive, and legal” step to safeguard the long-term interests of American cricket. CEO Johnathan Atkeison said the decision was made to give the board the "time and space" it needs to restructure and address the ICC suspension.
“The decision was not made lightly, but it is the best course of action to secure USA Cricket and allow it the time and space it needs to successfully reorganize,” said Atkeison.
Board Divisions Emerge
The bankruptcy filing has exposed further fractures within the USAC board. It is understood the decision was discussed during a board meeting on September 30. However, four directors — Nadia Gruny, Atul Rai, Arjun Gona, and Kuljeet Singh Nijjar — walked out in protest after reportedly being muted during the virtual meeting, voicing concerns over prioritising bankruptcy over addressing the ICC suspension.
Chairman Venu Pisike reportedly dismissed the concerns, saying there was “nothing to discuss” about the ICC situation. It remains unclear whether the remaining five board members — including Pisike, Anj Balusu, Srinivas Salver, and two independent directors, Pintoo Shah and David Hauber — constituted a constitutional majority to authorise the bankruptcy decision.
ACE Dispute Central to Crisis
At the heart of the financial crisis lies a long-standing dispute between USAC and its commercial partner, American Cricket Enterprises (ACE), the entity behind Major League Cricket (MLC).
USAC claims that a 50-year agreement signed with ACE in 2019 was heavily skewed in favour of ACE, limiting USAC’s ability to generate its own revenue, seek sponsors, or develop broadcast partnerships. The governing body alleges that the agreement was negotiated without proper disclosure of conflicts of interest by a former board member — believed to be ex-president Paraag Marathe, who was also involved with the San Francisco 49ers.
“Instead of fair market value, USAC receives only a small percentage of ACE's gross cricket-related revenues,” USAC said. “This arrangement purports to preclude USA Cricket from seeking team sponsors or broadcast partners.”
In August, USAC announced the termination of the agreement with ACE. However, ACE called the termination "unlawful" and filed legal action. On Wednesday, just minutes before a scheduled court hearing in Colorado, the court was informed of USAC’s bankruptcy filing — effectively halting proceedings.
“We have been forced into the protections of the U.S. Bankruptcy Court because ACE is well aware of its stature as an 800lb gorilla and has weaponized its financial muscle,” said Corey MacDonald, USAC General Counsel.
ACE hit back sharply, accusing USAC of derailing the sport’s growth in the U.S. and acting out of political motives rather than in the sport’s best interests.
“USAC has zero regard for the best interests of cricket and its players,” ACE said in a statement. “It is only motivated by politics and its directors' personal agendas.”
ICC Watching Closely
The ICC, which recently suspended USAC, had earlier warned the organisation against taking actions that could undermine the ICC’s operations in the U.S., including planning for the LA28 Olympic Games, where cricket is expected to debut.
“This Chapter 11 filing is a decisive move to secure our ability to address the patently inequitable contracts of the past, correct our financial situation, achieve governance reforms, and finally build the world-class NGB America deserves,” said Atkeison.
The ICC is yet to comment on the latest developments.
What’s Next?
While USAC hopes to use bankruptcy proceedings to renegotiate its commercial structure and governance model, the road ahead remains uncertain. With its ICC membership suspended, its primary commercial relationship in tatters, and a divided board, the future of cricket administration in the U.S. hangs in the balance.
USAC, however, maintains it is committed to rebuilding in time for cricket’s landmark return to the Olympic stage in 2028.