How USA Cricket's bankruptcy settlement could reshape its future path

USA Cricket has finally found a way out of one of the most turbulent periods in its short history. Nearly nine months after filing for Chapter 11 bankruptcy protection, the governing body received a major boost after the United States Bankruptcy Court approved its settlement with American Cricket Enterprises (ACE).

 

The agreement ends years of legal disputes, restores the parties' commercial partnership and unlocks more than $1.1 million in funding to help USA Cricket emerge from bankruptcy. More importantly, it provides the clearest pathway yet towards restoring financial stability, rebuilding governance and eventually regaining its ICC membership. Here's how USA Cricket reached this point and what the settlement means for the future of cricket in the United States.

 

 

What has happened?

 

The United States Bankruptcy Court has approved a comprehensive settlement between USA Cricket and American Cricket Enterprises (ACE), bringing to an end one of the biggest legal disputes in American cricket.

 

Under the agreement, USA Cricket will retain its landmark 2019 commercial partnership with ACE while receiving a financial package designed to support its emergence from Chapter 11 bankruptcy. ACE will provide $480,000 in post-petition financing, contribute $340,000 towards administrative and unsecured claims, provide exit financing and withdraw its $150 million proof of claim against USA Cricket.

 

The ruling also allows USA Cricket to formally assume the 2019 Term Sheet with ACE, restoring a commercial partnership that had become the centrepiece of years of litigation. 

 

The dispute that changed everything

 

The roots of the dispute stretch back to 2019, when USA Cricket signed a landmark commercial agreement with ACE, the company behind Major League Cricket (MLC). The deal was expected to provide long-term commercial stability and accelerate cricket's growth in the United States.

 

Instead, disagreements over finalising the long-form commercial agreement soon emerged. The relationship between ACE and sections of the USA Cricket board steadily deteriorated as governance issues became intertwined with commercial negotiations. What began as a contractual disagreement eventually developed into years of boardroom infighting and legal battles, leaving the governing body divided at a time when American cricket was beginning to attract unprecedented private investment.

 

Governance crisis leads to ICC suspension

 

The prolonged dispute came at a heavy cost. With its relationship with its principal commercial partner fractured, USA Cricket remained perpetually cash-strapped, limiting its ability to invest in its national teams and expand its international calendar.

 

Despite the USA men's historic Super Eight appearance at the 2024 ICC Men's T20 World Cup, the governing body struggled to build on the momentum. In the following two years, it hosted only one bilateral T20I series—against Nepal—and, apart from its mandatory ICC Cricket World Cup League 2 fixtures, did not organise another home international series.

 

The worsening administrative situation eventually drew the attention of the ICC. After issuing repeated warnings over governance failures, internal conflicts and administrative shortcomings, the ICC suspended USA Cricket in September 2025. The suspension marked the lowest point in the governing body's brief history and significantly increased the pressure to resolve both its governance issues and its dispute with ACE.

 

Why USA Cricket filed for bankruptcy

 

Relations between USA Cricket and ACE reached breaking point in September 2025, when the governing body attempted to terminate the 2019 commercial agreement. ACE immediately challenged the decision, arguing the termination was unlawful.

 

Only weeks later—and just hours before a scheduled state court hearing—USA Cricket filed for Chapter 11 bankruptcy protection. The move shifted the dispute from a conventional contractual battle into bankruptcy court, where the governing body sought a different legal route to resolve the conflict over the commercial agreement.

 

That decision would ultimately pave the way for the settlement that now offers USA Cricket its best opportunity yet to emerge from years of financial and administrative uncertainty.

 

How the United States Bankruptcy Court found a solution

 

USA Cricket's path out of bankruptcy did not come from its existing leadership but through the intervention of the bankruptcy court.

 

In early 2026, the court revoked USA Cricket's Subchapter V designation and appointed a Chapter 11 trustee to take control of the governing body's affairs. The move effectively shifted responsibility for negotiations away from the board that had overseen years of disputes with ACE and placed it in the hands of an independent fiduciary tasked with finding the best outcome for creditors and the organisation.

 

The trustee reopened negotiations with ACE and crafted a settlement that sought to balance USA Cricket's immediate financial needs with the long-term commercial relationship established under the 2019 Term Sheet.

 

The proposed agreement, however, faced significant opposition. Seven separate objections were filed by the National Cricket League (NCL), former USA Cricket chairman Venu Pisike, former executive secretary Anj Balusu, former director Srinivas Salver and former USA Cricket counsel Sesha Kalapatapu. Collectively, they challenged various aspects of the settlement, financing arrangements and USA Cricket's decision to assume the 2019 commercial agreement with ACE.

 

Following the hearing, Judge Michael E. Romero overruled all the objections and approved both the settlement and financing motions. The court concluded that the agreement fell within the range of reasonableness required under US bankruptcy law, rejected arguments that it amounted to an improper "sub rosa" reorganisation plan and authorised USA Cricket to assume the 2019 Term Sheet with ACE.

 

The ruling effectively ended months of uncertainty and provided USA Cricket with a court-approved roadmap to emerge from Chapter 11 bankruptcy.

 

What does the settlement mean for USA Cricket?

 

Beyond ending the legal dispute, the settlement gives USA Cricket its first meaningful opportunity in years to rebuild both financially and administratively.

 

Under the agreement, ACE will provide $480,000 in post-petition financing to fund USA Cricket's operations during the bankruptcy process and contribute $340,000 towards administrative and unsecured claims. The company will also provide exit financing to support USA Cricket's emergence from Chapter 11 while withdrawing its $150 million proof of claim against the governing body.

 

Equally important is the restoration of the commercial relationship between the two parties. By assuming the 2019 Term Sheet, USA Cricket retains access to the commercial partnership that underpins much of American cricket's professional ecosystem, including the continued development of Major League Cricket and wider investment in the sport.

 

The ruling also comes at a symbolic moment. Just a day before the settlement was approved, ACE completed the new Los Angeles cricket venue that will stage matches during the 2028 Olympic Games, underlining the scale of private investment continuing to flow into American cricket despite USA Cricket's governance crisis.

 

"We are pleased that the Court has approved the settlement and financing arrangements. Throughout this process, our objective has remained the same: to support the long-term future of cricket in the United States while ensuring that USA Cricket has a realistic pathway to emerge from bankruptcy and restore its membership with the ICC," said Johnny Grave, CEO of Major League Cricket.