Hockley and Henderson are acutely aware that financial battles with the states and the Australian Cricketers Association were at the heart of acrimony that saw CA’s previous chief executive,Kevin Roberts,moved on in 2020,and previous chair,Earl Eddings,forced to resign last year.
After securing a 12.5% cut to distributions in 2020,and another 7% cut the following year,CA’s leaders are now seeking a 10% reduction to assist in belt-tightening. Each reduction has been to standard distributions and they are not cumulative. CA distributed more than $120 million to the states in 2020-21 according to its annual report.
The move was brought on partly by a 2021Boston Consulting Group report that suggested CA faced a $90 million revenue hole over the closing years of its current broadcast rights cycle without significant cutbacks. CA’s strategic plan for the next five years is being built largely around returning the game to strong financial health after COVID.
CA still has access to a $50 million credit facility with NAB procured in 2020,but the governing body does not wish to delve into it unless another emergency were to crop up before reserves can be replenished.
At the same time,CA’s broader goal is a greatly increased pot of reserves,certainly up from the $70 million level at which the governing body rested before COVID-19,to be prepared for unforeseen events like a global pandemic.
Other major not for profit sporting bodies,such as the United Kingdom’s Lawn Tennis Association which oversees the Championships at Wimbledon,have enough cash in reserve to be able to withstand the cancellation of an entire tournament.
Hockley,who used his expertise in staging major events to help guide CA through the past two COVID-affected seasons,generated some anxiety when explaining cricket’s finances at an all-staff forum to end the season. The organisation had to return to core cricket activity and prepare for a tough couple of years in trying to save money ahead of the next set of broadcast deals to follow the $1.2 billion agreement with Foxtel and Seven in 2018.