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As the financial crisis hits the Cricket Australia (CA) in the ongoing coronavirus pandemic, the board has decided to save around $40 million from its annual budget. The board has also agreed to cut 40 roles in this crisis.
While the CA is facing a deep financial crisis at the present moment, Kevin Roberts was just removed from the CA CEO post last Tuesday (16th June). Nick Hockley, the CEO of the ICC Men’s T20 World Cup 2020 local organising committee, is currently holding the CA CEO post for the interim period.
Now, the CA has announced it’s cost-cutting, including cutting the jobs, which can help the board to save around $40 million from its annual budget.
In a media release on Wednesday (17th June), the board stated, “The amended FY21 plan presented to staff today identifies cost reductions of approximately $40 million a year to partly mitigate the impact of COVID-19 on revenue and other factors such as biosecurity costs and match attendances.”
To mention the job cuts, the board added, “Regrettably, the plan includes a reduction of 40 roles. The positive impact of the Job Keeper program and an increasingly improved outlook for the season ahead have been recent factors considered in arriving at this final number.”
The interim CA CEO Hockley has admitted that it is a difficult day for the board, but he is hopeful of arising stronger from this crisis.
In last April, due to the coronavirus pandemic, Roberts-led CA decided to temporarily job-cuts of around 80% of staff at the head office while the others faced around 20% salary-cut.
The CA Chairman Earl Eddings also opened up his sadness about the latest tough decisions. However, he has clarified that their goal is to become stronger as soon as possible.
Eddings quoted, “We recognise that this is a difficult time for Cricket Australia employees, particularly for those staff members affected by these redundancies and their families. However, our responsibility is clear: to navigate a path for cricket through this period of uncertainty and disruption to ensure we come out the other side sustainable in the short term and prosperous in the long term.”
Cricket Australia talked about the domestic fixtures
The CA has decided to continue their domestic cricket for the upcoming home summer. It means the Marsh Sheffield Shield, WNCL and Marsh Cup will be organised along with maintaining the same number of games of the last summer’s Women’s Big Bash League (WBBL) and Big Bash League (BBL).
However, the Toyota Second XI competition, CA XI fixtures against touring sides, the National Premier Cricket T20 competition and Australia A tours have been cancelled for the upcoming summer. While the national U19 male competition will continue, male U17s and male & female U15 championships have been excluded from the forthcoming summer’s plan.
Hackley also explained the reason for the latest budget cut-off decision, which was due to “sustainable financial position to manage four-year cycles that can involve annual revenue swings of 100 million dollars depending on the cricket schedule.”
Talking more about this, Hackley also hinted their preparation to organising the matches in the upcoming home summer with fewer crowds.
He added, “We are excited about the prospect of cricket returning this summer but are prepared for fewer crowds and higher associated costs of biosecurity measures in addition to the likelihood of incurring borrowing costs rather than investment returns. Taking costs out of the organisation, however painful, helps offset those impacts and we will remain vigilant to changing circumstances.”
At the end of this year, India will tour in Australia for the three-match T20I series, four-match Test series and three-match ODI series. The CA has already announced the full schedule of this crucial home fixture. Though the schedule can be changed, the CA is confident to host the Indian team successfully in the forthcoming summer.
If the upcoming India tour of Australia runs successfully, the CA can generate a revenue income of around $300 million, which can help the board hugely in this crisis.