Cricket Business : Even if India tour materializes, Cricket Australia CEO claims ‘$53Mn hit’

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On Thursday, Cricket Australia (CA) announced full blown international schedule for the Australian summer. The schedule had listed 10 full games against the Indian team. Now, it has been revealed by the Chief Executive Kevin Roberts that even if the entire summer goes as planned, CA will have to take $53Mn (AUD 80Mn) hit.

Roberts has given 3 prime reasons for such a huge hit for the Australian cricket.

Reason 1 –  Roberts says lack of blockbuster crowds during the international summer in the 2020-21 season. According to Roberts, this factor will impact CA’S financial positions in a big way.

“The likelihood of significant crowds is very slim – ordinarily that would deliver well over AUD $50m revenue to CA,” Roberts told reporters on Friday.

Reason 2 – The likely postponement of the Twenty20 World Cup will further hit the pockets of CA according to its CEO. Roberts concedes there is a “very high risk” of the tournament, which Australia is slated to host this October and November, being stalled because of the coronavirus pandemic. Roberts says CA stands to lose AUD $20m from not hosting the cup as scheduled.

Also Read: ICC Meeting Update: All agenda items, decisions deferred until June 10th

“The T20 World Cup is a big question and that’s a factor of perhaps $20m … we have been hopeful all along that it could be staged in October-November but you would have to say there’s a very high risk about the prospect of that happening”.

Reason 3 – In addition, CA will spend on biosecurity measures to ensure international teams can play in Australia. That according to its CEO will cost them additional AUD $10m

“Our biosecurity measures that we need to put in place to deliver the season will cost in the order of $10m.”

Roberts has further warned that due to these hits more cost-cutting measures will have to be undertaken in the Cricket Australia’s operations. Roberts said CA management were currently working through cost cuts to the governing body.
“We have been forced to effectively plan for the worst and hope for the best. We have made a commitment to significantly reduce the cost base of Cricket Australia,” he said. “Unfortunately that means that no area of the organisation will be untouched. “It’s premature to talk about the detail of those plans, that will come in the not-too-distant future.”

Cricket Australia on a cost cutting spree, 100 people have lost their jobs in Australian cricket

It is worth noting that already CA is on a cost-cutting spree. More than 100 people attached with the Australian cricket have lost their jobs in the last two months.

Since the time CA furloughed and reduced 85% salaries of its staff, the unwanted baton now has been passed on to the state associations who one after the other are cutting costs in every possible manner.

Cricket Victoria, Cricket Tasmania, South Australian Cricket Associaiton, Queensland Cricket has cut almost a third of its workforce. As per some of the repots in the local media, the backbone of cricket in Australia, community cricket will be the worst affected due to these cost-cutting measures.

Also Read: Cricket Australia declares full blown tour schedule, T20 against India starts from Oct 3rd