Cricket Australia (CA) has witnessed a financial downfall due to the coronavirus pandemic with a nearly 50% dip in its revenue which underpins player payments.
According to reports in Australian Media, CA had originally expected around $276 million revenue in the 2020/21 season. The disruption in the calendar slashed that considerably.
As per the revenue-sharing agreement, players are paid over a quarter of the revenue. The players union, the Australian Cricketers’ Association, announced that they received revised revenue projection from CA. They will discuss the repercussions of the cut in revenue in a board meeting this week.
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Last week, CA Chief Executive Kevin Roberts confirmed that the board was facing a shortfall of about A$ 80 million in revenue due to COVID-19. He further stated that there was a high possibility that Australia would be unable to host the Twenty20 World Cup in October-November.
Although the worst-case scenario seems to have been avoided with India’s four-Test tour that is expected to bring in a revenue of $206 million. That tour will kick-off the home summer season for Australia.
CA had laid off about 80% of its workforce in April to save $3 million in costs that triggered widespread criticism. Many state associations in Australia have also started staff cuts in recent weeks. Kevin Roberts initiated another round of cost-cutting last week saying that no part of the game would remain ‘untouched’.
"We've made a commitment to significantly reduce the cost base of Cricket Australia. Unfortunately, that means that no area of the organisation will be untouched," Kevin Roberts told reporters last week.
"There will be an impact but it's very important that we work through that sensitively towards our people and our communities around the country,” he added.
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