Cricket Australia have decided to furlough the majority of staff due to challenges they have faced from the coronavirus crisis.
A statement read: “We have made the decision during this period of isolation, where activity has naturally been reduced, to stand down our people on reduced pay (with the exception of a skeleton staff) effective 27 April.
CRICKET AUSTRALIA Revenues & Decisions
Assumed Revenues to Shrink
– CA is believed to be planning for a 50% reduction in revenue for next summer, which was slated to feature the T20 World Cup and a lucrative tour by India.
Low Cash Reserves and impacted investments
– At its most recent AGM last October, CA reported that it had USD 16 million approx. in cash reserves plus another USD 57 million approx in investments. Those investments are believed to have taken a serious hit due to the economic effects of coronavirus, reducing CA’s ability to weather the current storm without making pay reductions for staff.
Result – Staff to take 80% pay cut or to be furloughed
– CA staff will be asked to take an 80% pay cut or equivalent from April 27 until July.
Even though CA was able to complete a bulk of its 2019-20 season before the coronavirus crisis hit, the subsequent downturn has brought the indefinite postponement of cricket and other sports worldwide, which has in turn severely disrupted commercial partners and other revenue streams.
CA remains optimistic the 2020-21 men’s and women’s home summer – scheduled to begin with the men’s T20 World Cup in October and November – will proceed, whether in empty stadia if social distancing restrictions remain in place or as relevant crowd guidelines allow.
To reduce operating costs in the interim, CA has followed the lead of the Australian Football League and National Rugby League (among other major codes) in reducing its workforce to a skeleton staff until June 30 when more will be known about restrictions brought about by the virus, and the economic picture is potentially clearer.
“The impacts on the sports industry of the coronavirus pandemic are bigger than any one sport,” CA said in a statement released this afternoon.
“Cricket Australia – like all sporting bodies – is planning for a return to training/play although no one is certain when this will be possible at this stage, and many scenarios are being considered.
“We are conscious of the impact this will have on Australian Cricket and are working hard to manage that proactively.
“We have made the decision during this period of isolation, where activity has naturally been reduced, to stand down our people on reduced pay (with the exception of a skeleton staff) effective 27 April for the remainder of the financial year.
“We will continue to seek advice from medical experts and relevant government agencies to ensure the health and safety of our people, volunteers and communities, and to return to business as soon as possible.”