New broadcast and commercial partnerships have Australian cricket set for continued growth, the 2013 Cricket Australia Annual General Meeting (AGM) heard today.
Revenue grew 63 per cent to $684m over cricket’s four-year reporting cycle (2009-2012), up from $418m (2004-2008) and is projected to grow to $1.083b for the next four-year cycle.
Cricket revenue is recorded over the four year period due to annual fluctuations in income derived from teams touring Australia with the adoption of financial policy that allows for the smoothing of member distributions and player payments.
This ensures the consistent funding of game development programs and activities.
The AGM was told that CA is on track to record strong revenue growth over the next four year cycle, achieving its strategic goal of having $70m in cash reserves by 2016-17 to future-proof the game against any unforeseen event.
The AGM also discussed that while the Ashes results were disappointing for the men’s and women’s teams, the implementation of recommendations from the Australian Team Performance Review were intended to create a performance-based culture and achieve the long-term goal of producing the best teams, players and officials in the world.
Meanwhile, cricket continued to make good progress against a range of its strategic goals, including an emphasis on better aligning CA and its Member State Associations as one efficient Australian cricket organisation.
Cricket’s revenue mix is also changing with a higher proportion of locally sourced income from new local broadcast and commercial partnerships. During the next four year cycle, 65% of cricket’s media rights revenues will be generated locally compared to 53% during the previous cycle.
The AGM heard that the CA’s strategic investment, as a result of its increased revenue, would be targeted on specific regions and projects around the country.
Some of the initiatives approved so far include:
Restructure of Women’s Player Contracts
Significant increase in retainer and tour payments for Commonwealth Bank Southern Stars players to make them the best paid sportswomen in Australia
Contribution to proposed Victorian Cricket & Community Centre
$4m contributed towards the building of a facility that will be built for everyone in the community , including those from regional Australia and diverse backgrounds
Regional development funding for NSW and ACT
Funding provided for facilities, development programs and staff in targeted areas
Seed funding for a National Community Cricket Facilities Fund
CA working with states to develop a national program to fund community facilities projects
In partnership with Clontarf Foundation
Engaged more than 1000 Indigenous students across the Kimberley's, Darwin, Central Australia and New South Wales in a pilot cricket program
Increased funding for all Big Bash League teams
Including funding available for fan and community engagement initiatives in key strategic market
Today's AGM also voted to introduce a remuneration policy for CA Directors to bring Cricket Australia into line with a number of other major professional sports in Australia. Directors will receive a fee of $25,000 per annum with the Chairman receiving $165,000 in recognition of the significant commitments required of the role.
CA’s AGM also voted today to accept CA’s Annual Report and financial accounts.
The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of Cricket Australia
First Posted 24 October, 2013 12:01PM AEST