MLC parent company calls USA termination unlawful as “USAC is hypocritically alleging contractual noncompliance”.
MLC parent company calls its agreement termination by USA Cricket ‘unlawful’ and ‘wrongful’.
American Cricket Enterprises (ACE), the parent company of Major League Cricket (MLC), and USA Cricket (USAC) have ended their three-year commercial relationship. The termination was referred to as “unlawful” and “wrongful” by ACE in response. ACE said that USAC has “no grounds to terminate the agreement” because it has “fully complied” with its contractual responsibilities.
In a media statement released on August 21, USAC identified several significant violations of the contract they signed in May 2019 and claimed that ACE had not “fulfilled its contractual and fiduciary obligations” in spite of “extensive dialogue, the issuance of formal breach notices, and repeated opportunities to cure defaults.”
“The breaches span critical areas, including financial commitments, infrastructure development, organizational structural, and governance responsibilities,” the release said.
Venu Pisike, USAC Board chairman, further said: “USA Cricket entered into this partnership with ACE in good faith, with the shared vision of building sustainable infrastructure, providing competitive opportunities for our athletes, and creating commercial growth for the sport in America. We are supportive for the growth and success of Major League Cricket and Minor League Cricket. But, when it comes to USA Cricket, ACE has consistently failed to meet its obligations under the agreement, which has jeopardized the broader development of cricket in United States.
“After years of engagement and repeated breach notices, USA Cricket has no choice but to terminate this agreement to protect the best interests of the sport and its stakeholders. Additionally, we also raised concerns around the circumstances under which ACE was given the contract and the usage of USA Cricket intellectual property.
“USA Cricket is resolute in ensuring that American cricket has a strong, sustainable future. We will continue to work closely with the International Cricket Council, domestic stakeholders, and partners to deliver on this vision.”
The release further said USAC is open to “renewed discussions” with ACE for new terms and conditions that ensure “full alignment with the organization’s vision and long-term development objectives, including support for national team programs, player development, and grassroots initiatives.”