The launch and subsequent success of Twenty20 cricket some years later was the influence behind a serious effort to get such a tournament off the ground. Twenty20 cricket was launched by the England and Wales Cricket Board (ECB) in 2003. Its launch was a result of a long-term decline in the popularity of county championship and domestic limited-overs cricket. By reducing the number of overs per innings to twenty and by placing a three hour limit on matches, the format was designed to attract a younger crowd and to boost attendances.
Twenty20 proved a success, with an international version launched in 2005 and a World Twenty20 Competition held in September 2007. This proved much more popular than the 50 over Cricket World Cup had been just five months previously.
The following year, the Indian Premier League (IPL) was launched, proving that there could be a market for a big-spending domestic Twenty20 cricket league. The success of Twenty20 and the IPL lead many commentators to suggest that other forms of cricket would suffer, with some worrying about the effect of the popular fast-paced 'slogging' game on players' abilities in Test cricket.
Immediately after the end of the first series of the IPL, the cricket authorities in England, India, Australia and South Africa entered into discussions to create a new international club competition, to capitalize on this success.
The new tournament's £2.5m winning prize was described as "unprecedented" in cricket. A number of different formats for the tournament were considered, with original proposals containing a much lower prize fund.
The T20 Champions League's creation was announced on 7 June 2008, along with the announcement of planned restructuring of some of the domestic cricket tournaments involved, including the introduction of franchising in South Africa, England and Australia.