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Some of English cricket's most iconic grounds face the prospect of insolvency unless there is significant change to the game's financial structure and a new approach to Twenty20, according to a Deloitte report into the sport’s finances.

The report, a copy of which was seen by the Daily Telegraph, will be finalised and submitted to the England and Wales Cricket Board (ECB) next month. It has been commissioned by a working party mainly comprising administrators from the Test match grounds, one representative from the smaller counties, David East of Essex, and ECB chief executive David Collier.

The report details an over-reliance on broadcast money and the pitfalls of the competitive bid process for hosting Test matches, while raising the opportunity to earn income from a new 'elite' T20 competition.

It is designed as a discussion document, reports the newspaper, has cost about £100,000 and relies on information provided by the first-class counties, the MCC and ECB.

The report reveals that Test match grounds have invested £150m in facilities since 2000 with another £56m committed over the next four years and the prospect of a further £126m between now and 2019.

The massive building projects have largely been funded by heavy borrowing from banks and the public sector, added the Telegraph. The investment has coincided with a highly competitive tendering process for hosting international matches in which counties bid blindly against one another for Tests and one-day internationals.

The report, entitled 'Building a Stronger Future for the Domestic Game', said: "Without corrective action, there is a looming risk of CAVs [Category A Venues] facing financial difficulties and maybe even insolvency."

The debt levels of the Test match grounds stands at £91m.

The report added: "The current arrangement for allocation and pricing of rights to stage major matches is unsustainable and a new commercial relationship between ECB and CAVs is required."

The most politically sensitive aspect is the examination of how a Twenty20 competition involving 10 teams distinct from the counties could offer an alternative income source, reports the Telegraph.

County cricket has shied away from this before but the report continued: "An alternative cricket competitions calendar that creates an exclusive window for T20 cricket can generate significant commercial and other advantages.

“There is an opportunity to explore the value of a new competition that generates value for all 18 FCCs [first-class counties] and the whole game. We need a long-term plan to build a stronger future for the domestic game."

The report estimates that, based on current broadcasting models, the new league could be worth £34m – an increase of £26m on what it is thought Sky pays for the Friends Provident T20. Sponsorship income could also rise by £9m to £10m and match-day income would double to about £14m based on average attendances of 15,000.