Cricket SA posted a better than expected net loss of R119m in the last financial year, the organisation announced at its AGM on Saturday.
CSA CFO Tjaart van der Walt said the result was much improved compared to last year when the organisation reported losses totalling R198m.
Reductions on spending for amateur and professional cricket was one area where CSA cut costs, with Van der Walt explaining CSA spent R40m less on the former (R196m, down from R236m) and R41m less in the professional arena, with R498m spent in the last financial year compared to R539m previously.
“The cost reductions related mainly to funding of cricket programmes at both national and member level. Though the net loss at the end of the year was better than expected, CSA’s cash flow continued to be closely managed due to the cyclical nature of its revenue inflows and its reserve position,” Van der Walt said in his review of CSA’s finances.
Some of those cost reductions are the result of fewer matches being played domestically, a move that has been criticised at provincial level, with coaches and players believing it will prove detrimental to the Proteas men’s team.
Recently former Proteas coach Russell Domingo voiced his concern about the fact that teams in Division One would play just seven first class matches this season. “Obviously there are financial implications, but — when you look at it from the outside — they are playing too few four-day games. Only seven four-day games, that’s not good, only seven one-day games, that is not good,” said Domingo, who is currently the head coach of the DP World (Central Gauteng) Lions.
“Once things settle down financially (CSA) definitely need to invest in more cricket for the players, particularly more four-day cricket,” he said.
Van der Walt was optimistic about CSA’s financial future. “The outlook for the new financial year is positive, notably due to the impact of international broadcast revenue relating to the Indian tour to South Africa in December and January that will materially change CSA’s financial position,” he said.
In addition the R496m it will receive as CSA’s portion of the ICC distribution, will further swell the coffers. “This will result in more funding being channelled into programmes supporting the cricket imperative of a strong Proteas men’s team, notably providing opportunities for the SA ‘A’ team and extended professional domestic fixtures.”
Furthermore, extra funds will also be made available in support of the new Professional Women’s Domestic League. “We are confident that investing in these programmes will result in tangible returns that will benefit South African cricket at all levels into the future,” said Van der Walt.
The SA20 also made a small contribution, which hadn’t been forecast in its first year, adding R34m to the finances. CSA, through its investment in the Africa Cricket Development (Pty) Ltd, the entity managing the newly formed SA20 league, owns 57.5% of the league.
“CSA has indeed turned the corner,” said Lawson Naidoo, chair of CSA's board of directors. “There are many wins to celebrate, and many more to come. While CSA recorded a financial loss in the year under review, I am pleased to say that these losses are substantially lower than anticipated.”
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