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Cricket South Africa is optimistic despite loss of R317m over past two years

Cricket South Africa is optimistic despite loss of R317m over past two years
Keanan Hemmonsbey
By Keanan Hemmonsbey
4 Sep 2023
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Cricket SA has accrued a loss of more than R317m over the past two financial years, but the tide is set to turn with India’s tour of the country later this year.

Cricket South Africa (CSA) has reported a R119-million loss for the previous financial year which ended at the end of April 2023. 

Although the loss is substantial, it is an improvement on the R198-million loss accrued the year before.

A cash balance at the end of the financial year of R152-million was reported. 

This was revealed at CSA’s annual general meeting on Saturday, 2 September. 

“Although the company reported a net loss of R119-million, the performance was better than expected and much improved compared with the loss of R198-million in the previous year,” the CSA integrated report read. 

Despite the financial loss, CSA is seemingly optimistic about its overall financial performance. 

This is in part because the financial loss was less than expected; CSA reportedly budgeted for a loss of about R200-million.

“CSA benefited from the weakening rand exchange rate, which impacted US dollar-denominated revenue from international broadcast rights as well as distributions from the ICC [International Cricket Council],” the report read. 

“The company reported net foreign exchange gains of R44-million on the back of the weaker currency, which averaged R17.25/USD compared with R15.98/USD in the prior year. 

“CSA’s investment in Africa Cricket Development (Pty) Ltd, the entity managing the newly formed SA20 league, also contributed positively to the result, with our share of profit being R34-million.” 

Incoming profits


Despite accumulating a combined loss of R317-million across the previous two financial years, CSA expects to see significant profit margins in the current year. 

India’s upcoming multiformat tour of South Africa at the end of the year is expected to be a massive payday for CSA. The broadcast rights deal for the tour is worth more than R1-billion — although not all of that will go directly into CSA’s coffers. 

Indian tours — and to a lesser extent, Australian visits — are currently the only profitable aspects of the international game for South Africa, so CSA needs to keep its losses to a minimum until the subcontinent team’s next visit.

For context on India’s stranglehold on international cricket, CSA lost out on about R688-million when it was mutually agreed to reschedule the four T20Is during India’s tour of the country in December and January of 2021/2022. 

Saving money


South Africa hosted the Women’s T20 World Cup and the inaugural Women’s under-19 T20 World Cup, which also boosted the body’s finances this financial year.  

“There was reduced spending on amateur and professional cricket, a result of intentional cost reductions, given CSA’s financial position at the start of this financial year and the outlook over the short to medium term,” the report read. 

“Spending on amateur cricket was R196-million, compared with R236-million in 2022, with professional cricket expenditure coming in at R498-million compared with R539-million in the previous financial year. 

“The cost reductions related mainly to funding of cricket programmes at both national and member level. Although 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.”

Perspective


CSA said the financial results should be viewed in the context of the four-year cycle in which it operates. 

“CSA prepares budgets and operates its business based on a four-year financial planning cycle to take account of the decidedly variable revenue flows that arise from the divergent inbound international tours to South Africa each year,” the report read. 

“The four-year cycle allows CSA to plan programmes sustainably and evaluate its finances more meaningfully. Therefore, annual results should be viewed in the context of the four-year cycle.

“The results for 2022/23 set out represent the first year of the new four-year cycle.” DM

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