Last month ACA had rejected the revenue projection of CA which claimed that the game was set to lose hundreds of millions of dollars as a result of the coronavirus pandemic. It cited a lack of confidence in CA’s figures, saying the forecasts “do not appear to be reasonable or consistent with an obligation of good faith”.
ACA withdraws notice of dispute issued to Cricket Australia
According to the agreement, ACA also has withdrawn notice of dispute issued to CA.
“The parties have agreed to postpone the Australian Cricket Revenue projection until such time they are better able to assess the financial impact of the pandemic and calculate a clear projection for the year ahead,” a statement from CA read. “The [revenue projection] will be reassessed in due course.”
CA thanked the ACA for the “constructive manner” in the way they approached discussions in a “challenging time for the game”. The ACA welcomed what it described as a “reset” of the revenue forecast made in June by Cricket Australia (CA). ACA chief executive Alistair Nicholson said, “this ‘reset’ is both welcome and sensible”.
“Under this reset, CA has agreed to withdraw its June 2020 notices containing its revised revenue forecast, and in its place, rollover its ‘pre-coronavirus’ April 2019 forecast.
“In turn the ACA has agreed to withdraw its Notice of Dispute relating to the June 2020 forecast.
“Both parties have done so without admission and agree that providing definitive revenue forecasting in these times is difficult.
CA said that calculating revenue projections during the pandemic “has not been without its challenges, but we believe we have arrived at a position that provides all parties with greater certainty about how to navigate the next year”.
“CA is free to reforecast again at various times over the next financial year, should there be a material revenue event affecting cricket.”
In a statement, Cricket Australia said: “Cricket Australia and the Australian Cricketers’ Association have today agreed a way forward on Australian Cricket’s response to COVID-19.
“The parties have agreed to postpone the Australian Cricket Revenue projection until such time they are better able to assess the financial impact of the pandemic and calculate a clear projection for the year ahead. So far, the only two tours impacted by the coronavirus shutdown involving Australia have been a two-Test tour of Bangladesh and a limited overs visit to Australia from Zimbabwe. The lucrative India tour in the month of December stays unaffected for now.
Why Cricket Australia’s revenues matter to the players ?
