Stanford charges bring more than embarrassment

ST JOHN'S (Reuters) - Fraud charges against Texan billionaire Allen Stanford have had an immediate impact on cricket in England and the West Indies.

Shortly after the U.S. Securities and Exchange Commission (SEC) charged Stanford and three of his companies with an alleged $8 billion investment fraud, the England and Wales Cricket Board (ECB) and its West Indian counterpart said they were suspending negotiations with the 58-year-old.

What that means in practical terms, as ECB chairman Giles Clarke explained, is the planned Stanford-sponsored quadrangular Twenty20 tournament at the spiritual home of cricket, Lord's, is now unlikely to happen.

For the English, the impact is more a case of embarrassment by association. Clarke has come in for media criticism for England's $20 million game in Antigua in November against Stanford's team of West Indian players and for allowing a link to exist between the American and English cricket.

However, Caribbean cricket has more profound issues to deal with.

Stanford's privately run, but officially endorsed, Twenty20 series in the region was popular with fans and lucrative for players and is the only organized event in the Caribbean in the shortened format.

CREDIT CRUNCH

With Twenty20 now an established format with its own world championship, the West Indies Cricket Board (WICB) will have to look to run its own competition and search for new sponsors and revenue streams.

That is no easy task during the global credit crunch.

When Stanford flew into Lord's in his black helicopter and opened a box containing $20 million in cash to trumpet his 'prize fight' with England in Antigua, a five-year deal was announced.

It later transpired, however, that there were get-out clauses for all parties after the first year.

Regardless of the outcome of the charges against Stanford, who denies any wrongdoing, it looks highly unlikely the game featuring the biggest purse in cricket, played at the American's own ground opposite his Antigua bank, will take place again.

There will now be huge pressure on the WICB to find ways of keeping their top players' incomes close to international standard.

The way the best West Indian players can top up modest payments from the WICB is through the lucrative Indian Twenty20 league.

In future, international cricket boards will be wary of entering into deals with wealthy individuals with the idea that Stanford's $20 million extravaganza could start a trend of unofficial 'prize fights' now looking a fantasy.

Having suffered embarrassment through links with Stanford, even though he has yet to be found guilty of any offence, cricket is likely to return to more conservative ways with the various boards preferring the tried and trusted corporate sponsorship deals to the promises of entrepreneurs.

(Editing by Tony Jimenez and Alison Wildey)