- Joined
- Oct 2, 2004
- Runs
- 217,993
Cricket Australia has revealed it could be burdened with lost revenue and added costs of up to a whopping $120 million in a COVID-impacted summer in which it also remains in a financial fight with a host broadcaster.
The sport's governing body confirmed a net deficit of $45.9 million at its annual general meeting on Thursday, a figure not unexpected as last summer was always going to be run at a loss with New Zealand and Pakistan in town.
CA bases its finances over a four-year cycle, where an Ashes series and Indian series effectively bankroll the remaining summers when less attractive nations visit.
CA insists it will deliver a full summer highlighted by the $300 million white-ball and red-ball series against India, and the Big Bash League. While it was already known there would be the added costs of hubs of between $27 million and $30 million, the full impact on the international and domestic season was laid bare by CA director Paul Green, who is also chair of the risk committee.
"As all would be aware, we are facing some significant financial exposures in FY21 as a result of the impacts of COVID," Green said at the AGM.
"These fall into three categories: impacts to match-day revenues associated with crowd restrictions and some reduced content; impact to other revenue streams arising from the broader economic environment; and additional bio-security costs associated with hosting the season in a COVID environment.
"Based on current estimates, these factors could have a financial cost to cricket of up to $120 million in FY21."
As part of a five-point plan, CA has offset some of these costs through $40 million in savings, including the loss of 40 jobs in what was a turbulent winter at Jolimont and for all state associations.
There could be more financial fallout, for CA remains at loggerheads with broadcasters Seven West Media and, to a lesser extent, Foxtel.
Seven is seeking a significant reduction in its $75 million per year cash fee, and has taken CA to the Australian Chamber for International and Commercial Arbitration for an independent assessment. CA had offered a cut of about 20 per cent on this year's rights but Seven, with four years to run on its deal, wants a far greater reduction. It argues the quality of cricket this summer, particularly in the BBL, is not what it expected, coming after a drop in attendance and ratings last summer.
CA chairman Earl Eddings said on Thursday the governing body was "working behind the scenes" with broadcasters but was confident a full schedule would be delivered.
Nick Hockley, the interim CA chief executive, said he hoped for a "compelling" summer.
"We have got a perfectly good contract with our television partners right now and we are working through all of our arrangements with various issues," Hockley said.
"We have been very consistent that we will do everything we possibly can to deliver a full and compelling summer of cricket. In terms of production and promotion, both domestic partners have been really supportive and we will continue to have discussions as we have been through the course of the winter."
CA has yet to release a revised BBL fixture with the teams in hubs, but expects to do so within weeks.
As reported by The Age and Sydney Morning Herald, Seven and CA have even been at loggerheads over their nominations as to who should complete the independent assessment. Regardless, Seven has said it will continue to broadcast the summer season despite the off-field troubles.
The annual report also showed a cash balance at June 30 of $35 million as well as investments including cash of $38 million. The $73 million in total reserves has dipped from the $116 million posted in mid-2019.
"It is difficult to reliably estimate with any degree of certainty the potential impact of the pandemic after the reporting date on the company, its operations, its future results and financial position," the annual report said.
NSW's Richard Freudenstein and Green were re-elected as directors. Former NSW Premier Mike Baird and Dr Vanessa Guthrie, a West Australian mining director who is also deputy chair of the West Australian Cricket Association, were added, the latter in the new role of a 10th director. Baird is seen as a potential future chairman.
A replacement for Queensland director Michael Kasprowicz has yet to be confirmed but former Test gloveman Ian Healy has been sounded out.
Eddings also used the AGM to also pay tribute to those who had passed this year, including former captain Barry Jarman and star batsman Dean Jones.
https://www.theage.com.au/sport/cri...cricket-s-broadcast-deal-20201029-p569mr.html
The sport's governing body confirmed a net deficit of $45.9 million at its annual general meeting on Thursday, a figure not unexpected as last summer was always going to be run at a loss with New Zealand and Pakistan in town.
CA bases its finances over a four-year cycle, where an Ashes series and Indian series effectively bankroll the remaining summers when less attractive nations visit.
CA insists it will deliver a full summer highlighted by the $300 million white-ball and red-ball series against India, and the Big Bash League. While it was already known there would be the added costs of hubs of between $27 million and $30 million, the full impact on the international and domestic season was laid bare by CA director Paul Green, who is also chair of the risk committee.
"As all would be aware, we are facing some significant financial exposures in FY21 as a result of the impacts of COVID," Green said at the AGM.
"These fall into three categories: impacts to match-day revenues associated with crowd restrictions and some reduced content; impact to other revenue streams arising from the broader economic environment; and additional bio-security costs associated with hosting the season in a COVID environment.
"Based on current estimates, these factors could have a financial cost to cricket of up to $120 million in FY21."
As part of a five-point plan, CA has offset some of these costs through $40 million in savings, including the loss of 40 jobs in what was a turbulent winter at Jolimont and for all state associations.
There could be more financial fallout, for CA remains at loggerheads with broadcasters Seven West Media and, to a lesser extent, Foxtel.
Seven is seeking a significant reduction in its $75 million per year cash fee, and has taken CA to the Australian Chamber for International and Commercial Arbitration for an independent assessment. CA had offered a cut of about 20 per cent on this year's rights but Seven, with four years to run on its deal, wants a far greater reduction. It argues the quality of cricket this summer, particularly in the BBL, is not what it expected, coming after a drop in attendance and ratings last summer.
CA chairman Earl Eddings said on Thursday the governing body was "working behind the scenes" with broadcasters but was confident a full schedule would be delivered.
Nick Hockley, the interim CA chief executive, said he hoped for a "compelling" summer.
"We have got a perfectly good contract with our television partners right now and we are working through all of our arrangements with various issues," Hockley said.
"We have been very consistent that we will do everything we possibly can to deliver a full and compelling summer of cricket. In terms of production and promotion, both domestic partners have been really supportive and we will continue to have discussions as we have been through the course of the winter."
CA has yet to release a revised BBL fixture with the teams in hubs, but expects to do so within weeks.
As reported by The Age and Sydney Morning Herald, Seven and CA have even been at loggerheads over their nominations as to who should complete the independent assessment. Regardless, Seven has said it will continue to broadcast the summer season despite the off-field troubles.
The annual report also showed a cash balance at June 30 of $35 million as well as investments including cash of $38 million. The $73 million in total reserves has dipped from the $116 million posted in mid-2019.
"It is difficult to reliably estimate with any degree of certainty the potential impact of the pandemic after the reporting date on the company, its operations, its future results and financial position," the annual report said.
NSW's Richard Freudenstein and Green were re-elected as directors. Former NSW Premier Mike Baird and Dr Vanessa Guthrie, a West Australian mining director who is also deputy chair of the West Australian Cricket Association, were added, the latter in the new role of a 10th director. Baird is seen as a potential future chairman.
A replacement for Queensland director Michael Kasprowicz has yet to be confirmed but former Test gloveman Ian Healy has been sounded out.
Eddings also used the AGM to also pay tribute to those who had passed this year, including former captain Barry Jarman and star batsman Dean Jones.
https://www.theage.com.au/sport/cri...cricket-s-broadcast-deal-20201029-p569mr.html
