Players association rejects Cricket Australia’s claims of dire financial future

Australia World

Cricket Australia has a fight on its hands after the players rejected forecasts that the game is set to lose hundreds of millions of dollars due to the coronavirus pandemic.

The Australian Cricketers Association (ACA) wrote to the players saying it had no confidence in Cricket Australia’s figures.

According to the ACA, Cricket Australia (CA) is expecting revenue to fall by 48 per cent, from $461 million to $239.7 million for 2020/21, with a further 20 per cent reduction in 2021/22, from $484 million to $385.5 million.

The players currently have a revenue-sharing arrangement with Cricket Australia in which they receive 27 per cent of all revenue — an agreement that was realised after a bitter pay dispute in 2017.

The association had asked Cricket Australia to open up its books more than a month ago after CA revealed it could lose hundreds of millions in revenue.

But the ABC understands that instead of sending its complete financial projections, CA sent the players association an email.

The ACA said it had little confidence in the forecasts because “they do not appear to be reasonable or consistent with an obligation of good faith”.

“From what the ACA has been able to determine so far, cricket is yet to suffer a significant adverse revenue event and the outlook for the game remains positive,” ACA chief executive Alistair Nicholson said.

The association also said the forecasts appeared inconsistent with an assertion by Cricket Australia chief executive Kevin Roberts that the chances of India touring Australia later this year were “9 out of 10”.

That tour is expected to bring in $300 million, largely through television revenue.

Cricket Australia recently released a schedule for the summer that included the four Tests as well as one-day internationals and Twenty20s against India, plus the men’s T20 World Cup, the men’s and women’s Big Bash leagues, and women’s series against New Zealand and India.

Jasprit Bumrah bobbles the cricket ball as the crowd watches on in anticipation.

Jasprit Bumrah bobbles the cricket ball as the crowd watches on in anticipation.

India is one of the few touring nations that can still draw a crowd, but it remains to be seen if anyone will be allowed to attend this summer.(AAP: Daniel Pockett)

Nicholson said the ACA would start a dispute resolution process with Cricket Australia, as stipulated in the agreement between the two bodies, in an attempt to give more clarity on Cricket Australia’s forecasting process.

“To not follow this process would be to risk further damage to cricket, the game we all love, and its otherwise-bright future,” Nicholson said.

The ABC has been told by multiple sources that Cricket Australia has lost goodwill among staff, the players and states since it announced it was facing financial pressure in April, in part caused by a share-market downturn and fears coronavirus would stop international tours.

It had war-gamed losing up to 75 per cent of revenue before stating publicly it had to save 25 per cent — a figure at odds with the projections sent to the players association.

In April, Cricket Australia stood down 200 staff on 20 per cent pay, many of whom could be sacked in July.

Cricket Australia also asked the states to take a 25 per cent cut in grants.

Since then, many states have cut costs and axed more than 100 jobs across the country, directly affecting grassroots cricket.

Cricket New South Wales is holding out, believing — like the players — that the revenue forecasts are not credible, given there have been no cancellations.