Cricket South Africa is set to lose $15 million (INR 97 crore) for its failure to stage the inaugural edition of the proposed T20 Global League.
Cricket South Africa is in fix. After completing internal enquiries on T20 GLOBAL League fiasco, it is estimated that the South African board will be poorer by $ 15 million (Rs. 97 crores). The governing body for the sport in South Africa is struggling to come to agreement with the South African Cricketers Association and other player bodies with whom they had signed player agreements for the much hyped league
The tournament was postponed after CSA failed to secure a broadcaster and calculated that conducting the GLT20 will be loss making exercise. But with a draft having already taken place and squads announced, players and coaches who were promised plenty will be receiving payouts.
CSA and SACA have been reportedly engaged in mediation after they were unable to come to an agreement earlier this month. It has been almost three weeks since then and there has been no confirmation of a deal being reached.
Players are willing to accept 50% of the value of their contracts. However, even that would still amount to a significant expense for CSA, according to a report in South African Daily.
The total contract fee for all 144 players is understood to be worth over US$10 million. Half that amount equates to almost $5 Million. Besides, CSA also has to deal with other payments on account of stadium upgrades, expenses, contracts and commitments made on marketing and administrative aspects of the league
The board is reported to have cash reserve of $47.8 million at this stage. These will be severely depleted with the payouts on account of Global T20 league fiasco.
On the other hand, CSA’s board of directors will discuss the findings of its dual inquiries into the failure to host the T20 Global League at the next board meeting on December 20.
The organisation’s stand-in chief executive, Thabang Moroe, confirmed that reports from the two inquiries – an internal audit and a review of CSA’s governance – have been forwarded to the federation. “Once the Board has discussed the findings, I expect they will act on them,” said Moroe. In what capacity they will act remains to be seen but Moroe added that they may take the route of an “independent external inquiry”.
On the sidelines of a Press conference, Moroe couldn’t confirm if the findings would be made public. “That’s for the board to decide, I assume an extract of the report may be made public.”
In these difficult times, saving grace will come this summer with the arrival of India and Australia. While two such high-profile tours will certainly make some money for CSA, it will have to prudent on expenditures.
Next season, when the board plans to launch the GLT20 again, there are potentially loss-making visits from Sri Lanka and Pakistan and such financial management will be crucial to CSA’s sustainability. The board is yet to reveal its plans for staging the GLT20 in 2018. However, it is engaged in discussions with broadcaster SuperSport about a television rights deal.