Cricket Business : Bank Balance dwindling, Cricket West-Indies put in place emergency financial review committee

Cricket Business,Cricket News,Cricket West-Indies,West-Indies Cricketers,CWI Board
– West-Indies Cricketers not paid match fees
– CWI Broadcast deal pending since start of the year
– Decline in the Revenues
– Cricket Calendar has gone haywire due to Covid19
– Administrative expenses taking its toll
– SA / NZC tour to West-Indies in jeopardy
– ICC’s share less than projected
 
All the above shows, that the financial position of the Cricket West-Indies (CWI) is deteriorating by the day. The CWI finances is classic case of spendings being more than what you earn. And when, what you earn further gets impacted by Covid19, the financial fort of CWI is surely set to crumble.
With no broadcast rights deal in kitty as yet, the situation is getting alarming for CWI by the day.
To address the financial emergency in CWI, the The board has put in place a financial strategy review committee, who shall be responsible for reviewing the short and medium-term financing needs of CWI.
The high powered committee according to the reports, is being chaired by the president of the Jamaica Cricket Association (JCA) Billy Haven, Dr Shallow, Directors Imran McSood, Conde Riley, Enoch Lewis, chairman of the CWI’s Audit Risk and Compliance (ARCC) Wilbur Harrigan and CWI’s CEO Jonathan Grave.
The committee will send its recommendations to the board by May 28th on the way forward.
The committee is tasked with assessing the related financial implications for future international tours, regional tournaments and High Performance (HP) camps with regards to revenue, operating expenses, cash flow and re-scheduling or cancellation of events.
They will also review the current CWI cost structure and make recommendations on new areas for potential cost-reduction in addition to making recommendations generally on how CWI will need to operate to continue its core business, specifically given the changing but uncertain economic environment.
Media Rights Deal with the Broadcaster – Biggest Worry
The CWI is worried that despite of being on road since the last 6 months for the right media rights (broadcast & digital) partner for the next cycle, all talks with the potentials suitors are still in air. The President of CWI Ricky Skerritt himself painted a challenging portrait of the governing body’s finances in midst of pending broadcast deal which like any other sporting federation is the biggest source of revenue for CWI.
The broadcast rights money expired in December last year and we still do not have completed negotiations with most countries …,” he said. “One, you should really enter the market about two years before the end of the [deal] to start negotiating and trying to cajole and to convince the broadcasters to do business with you. We didn’t go to the market till around the same time I became president last year  so we’ve not had enough time in the market and to make it worse, the market has become very, very uncertain. So revenues which under normal circumstances we would have already begun collecting from broadcast rights, we have not done as yet.” said Skerritt couple of weeks back. 
Another big worry for CWI is the International Cricket Council’s revenues shares to the member boards. In case, T20 World Cup does not happen – the board is set to lose their revenue shares and that will be nothing less than disaster for CWI. As per the understanding CWI gets 7.2% of the total surplus of the ICC revenue shares. The same is currently under threat because of the uncertainty around T20 World Cup.
“Revenues continue to decline, expenses are fixed and even when you try to reduce some of the administrative or operational costs, you still have payrolls that exceed US$1.5 million dollars per month to cover players, etc and other fixed costs that just won’t go away.”, added Skerritt. 
 
Without any doubt, the situation is alarming for CWI and uncertainty surrounding around FTP, uncertainty around T20 World Cup is making future unpredictable and unsustainable for them.