USA Cricket files for bankruptcy ahead of court hearing with ACE

In a dramatic twist to an already chaotic situation, USA Cricket (USAC) has filed for Chapter 11 bankruptcy on Thursday (Oct 2), just minutes before a crucial court hearing in its legal battle with American Cricket Enterprises (ACE). This marks the first time an ICC member board has ever declared bankruptcy, sending shockwaves through the world cricketing community. Tensions had been rising between USAC and ACE, the company that funds and manages much of American cricket's development.

ACE had taken USAC to court, arguing that the board had wrongly terminated their agreement, which could harm the future of the sport in the U.S. A preliminary injunction hearing was scheduled to decide whether the partnership should continue while a full legal process unfolds.

However, just before the hearing could begin, USAC filed for bankruptcy. This automatically paused the court case, shifting the legal process to a federal bankruptcy court instead.

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Why Did USA Cricket File for Bankruptcy?

According to a report by Cricbuzz, USAC’s decision may have been a last-minute attempt to gain legal leverage. Financial documents from the bankruptcy filing show that USAC has limited assets and owes over $500,000 in unsecured claims. It also lists current player contracts, which could now be delayed or renegotiated due to bankruptcy laws.

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ACE criticised the move strongly, saying USAC "could not bear for the hearing to begin" and was only acting out of "politics and personal agendas." ACE also claimed it had offered to keep payments going if USAC agreed to a temporary legal agreement, but USAC refused.

What Next?

The future of USA Cricket now hangs in the balance. With the bankruptcy case taking priority, the legal fight with ACE is on hold. The International Cricket Council (ICC) and the U.S. Olympic and Paralympic Committee (USOPC) had earlier asked USAC’s board to resign to help reform the sport’s governance but the board declined.

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