USA Cricket Bankruptcy Update: Court Approves Settlement With American Cricket Enterprises

USA Cricket has taken a significant step towards emerging from bankruptcy after the United States Bankruptcy Court approved a settlement agreement with American Cricket Enterprises (ACE), ending a lengthy legal dispute that had threatened the future of the sport’s governing body in the country.

The ruling restores USA Cricket’s commercial partnership with ACE under the 2019 Term Sheet and unlocks more than $1.1 million in funding to help the organisation emerge from Chapter 11 bankruptcy.

Court approves settlement with American Cricket Enterprises

Under the approved agreement, ACE will provide financial support to stabilise USA Cricket’s operations, including:

• $480,000in post-petition financing to fund Chapter 11 operations.
• $340,000 to cover administrative expenses and unsecured claims.
• Exit financing to support USA Cricket’s emergence from bankruptcy.
• Withdrawal of its $150 million proof of claim against USA Cricket.

The settlement also reinstates the commercial agreement between the two parties after years of legal disputes over its validity.

How USA Cricket ended up in bankruptcy

The conflict dates back to disagreements over the implementation of the landmark 2019 commercial agreement between USA Cricket and ACE.

Despite initially approving the deal, sections of USA Cricket’s leadership later attempted to terminate the agreement in September 2025. ACE challenged the move, prompting a legal battle that escalated when USA Cricket filed for Chapter 11 bankruptcy protection just hours before a scheduled state court hearing.

The bankruptcy proceedings eventually saw the court appoint a Chapter 11 trustee to take control of USA Cricket’s affairs after determining independent oversight was necessary to guide the organisation through restructuring.

ICC suspension and governance issues

USA Cricket’s financial troubles were accompanied by governance concerns.

In September 2025, the ICC suspended the governing body following repeated warnings over governance failures, internal conflicts and administrative shortcomings.

The prolonged dispute with ACE also limited USA Cricket’s ability to invest in the sport domestically. Despite the USA men’s breakthrough Super Eight appearance at the 2024 T20 World Cup, the national team has played very little home international cricket in recent years outside mandatory ICC Cricket World Cup League 2 fixtures.

Objections dismissed by bankruptcy court

The proposed settlement faced opposition from several former USA Cricket officials and other stakeholders, who challenged both the financing package and the reinstatement of the 2019 agreement.

However, Judge Michael E. Romero rejected all objections, ruling that the settlement was reasonable under bankruptcy law and allowing USA Cricket to formally assume the 2019 Term Sheet with ACE.

MLC CEO welcomes ruling

Major League Cricket CEO Johnny Grave welcomed the decision, saying it provides a pathway for USA Cricket to rebuild.

“We are pleased that the Court has approved the settlement and financing arrangements. We recognize this has been a challenging period for everyone involved in U.S. cricket. 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.”

What happens next for USA Cricket?

Attention now shifts to the ICC and the court-appointed trustee as efforts begin to restore USA Cricket’s governance structure and eventually lift the governing body’s suspension.

A transitional administration led by independent directors is expected before elected leadership returns, with governance reforms likely to remain under ICC oversight through the build-up to the 2028 Los Angeles Olympics.

The court-approved settlement offers USA Cricket its clearest opportunity yet to move beyond years of legal disputes and administrative instability, although its long-term recovery will depend on implementing sustainable governance reforms.