USA Cricket declares itself bankrupt; ducks legal procedures to buy more time

Texas (TIP)-In a dramatic legal gambit, USA Cricket filed for Chapter 11 bankruptcy just minutes before a scheduled preliminary-injunction hearing in Colorado on its dispute with American Cricket Enterprises. The move automatically pauses the proceedings and shifts key decisions to the federal bankruptcy court. This adds a twist to the entire incident in a governance saga that has roiled American cricket for months. (reported by Cricbuzz)
This is the first instance known globally of an ICC member board declaring itself bankrupt. The filing arrived after weeks of boardroom unrest, ICC pressure over reforms, and a public rupture with ACE, the entity that backs Major Cricket League.
Under Chapter 11, USA Cricket seeks protection while it restructures its obligations. The Colorado hearing, where ACE sought a preliminary injunction, has now been effectively paused, pending the bankruptcy process. For the stakeholders, this means the bankruptcy court will now oversee immediate questions that would have been aired in Colorado.
Early bankruptcy schedules offer a first look at US Cricket’s finances: modest assets and unsecured claims of just over half a million dollars. The current player contracts, including those of several senior internationals, appear on the executory contracts schedule with end dates of December 31, 2025. This means that those deals now sit under Chapter 11 oversight and could face delays or renegotiation, subject to the approval of the court. ACE condemned the timing and intent of the filing. As quoted by Cricbuzz, an ACE representative said, “USAC could not bear for the preliminary injunction hearing to even begin, and knew the result was a forgone conclusion. It had no basis to terminate the parties’ agreement and was recklessly imperiling the success of cricket in the US. USAC has zero regard for the best interest of cricket and its players, and is only motivated by politics and its directors’ personal agendas.”
The report further claims that ACE offered to continue payments if USAC accepted a voluntary preliminary injunction, allowing the commercial agreement to run while the dispute proceeded to arbitration; however, USAC did not accept it.
The filing follows months of pressure from the ICC and USOPC, who repeatedly urged the USAC board to resign to pave the way for reforms and restart ICC clash flows, which the board declined. A separate flashpoint saw director Anj Balasu recalled by leagues amid arguments that bankruptcy was being used as leverage over the ICC. For players and pathways, the near-term picture is uncertainty around payments and planning cycles until the court sets a path forward.