Is NZ Cricket in the clear?
When the West Indies stride onto an illuminated Eden Park on Friday, November 27, and crowds flock, New Zealand Cricket chief executive David White will exhale. Maybe, even dance a jig.
Assuming the country remains in alert level 1, our national summer game will be back on its feet – but with one eye on the border.
Yes, NZC shed 15 per cent of its head office staff in June, and faces a $2m-plus bill for touring sides in managed isolation in quarantine (MIQ), but the pandemic’s timing could have been much worse. For example, on the eve of India’s arrival back in January, the most lucrative of all tours to host.
‘‘In a funny kind of way we’ve been fortunate, with cricket,’’ White said. ‘‘We missed the last three T20s against Australia [postponed in March] and community and domestic cricket lost the last few weeks of the season, but in comparison to the winter codes we have been fortunate in terms of the timing.’’
Back on March 13 – Friday the 13th – the Black Caps lost the first ODI to Australia at an eerie, empty Sydney Cricket Ground. The following day the tour was cancelled, NZC flew its players home then canned the rest of the home season at all levels.
White and senior staff mapped out scenarios for the 2020- 21 season. The worst: no international cricket on our shores.
‘‘The international game funds the whole of cricket in New Zealand so it’s very important, and broadcast and commercial revenue is critical,’’ said White.
Put simply, the Black Caps generate between 80-90 per cent of NZC’s income, including International Cricket Council dividends from world men’s tournaments. That total revenue in last year’s annual report was stated as $59.4m. Last year’s net loss was $3.5m, down from the previous year’s $9.3m deficit.
In May, NZC settled on costcutting to save up to $6m – a quarter from job cuts, understood to be around 12 of its 80 staff in Auckland and Christchurch.
The players – who are paid as independent contractors out of a ring-fenced portion of NZC’s revenue – avoided pay cuts amid a rare winter off. Twenty Black Caps and 17 White Ferns continued to receive their monthly retainers, while the 96 domestic men’s contracted players were back on the payroll as scheduled on September 1.
Said White: ‘‘We made a decision we
would continue to fund the whole game at the same level: players, the community game, the domestic game. And if any cuts were to be made they would be at head office, which we did. That’s been challenging but the staff have been terrific and really responded well.’’
NZC will soon announce its financial results for 2019-20, and all White would say is ‘‘we’re significantly ahead of budget’’, due to prudent cost management.
Recent losses have been put down to the ICC rescheduling those golden payouts, on which NZC relies heavily. That amount was promised to be US$128m (NZ$193m) for the 2016-2023 cycle, but the bulk of it is yet to land.
With men’s Twenty20 World Cups scheduled for 2021 ( India) and 2022 ( Australia), then a 50-over World Cup in India in 2023, White is optimistic.
As for the upcoming season, the advance West Indies party touched down on Friday after a mammoth journey and will be joined by team-mates and Black Caps from the Indian Premier League, in MIQ later this month.
Sports Minister Grant Robertson recently revealed a $7000 standard cost per person for 14 days of MIQ. With West Indies and Pakistan bringing squads of 40-plus, and Bangladesh, Australia (men and women) and England women also scheduled to tour, it’s estimated NZC will be hit with a $2m bill on top of usual daily tour costs.
NZC collected the wage subsidy during lockdown, but won’t be seeking any more assistance.
New broadcast rights deals with Spark Sport (TV) and MediaWorks (radio) were timely – now just content is needed.
There are Covid contingencies for the home summer to shift venues, and White says matches will still proceed if the country moves to level 2 and limited or zero crowds are permitted.
Gate takings make up around 10 per cent of NZC’s revenue, and rather than elevate ticket prices it has cut general admission rates by almost half. ‘‘ It’s tough out there and we want to bring a degree of normality back to the summer. If we can get as many people, and families, to the game as possible, it would be great for not only cricket but New Zealand as a country.’’
White’s biggest fear is a Covid19 border breach.
‘‘The Government has done a great job of controlling it and in sport we accept a big responsibility in following it to the letter of the law, the Government protocols, to make sure we do our bit.’’
NZC’s home summer, and its balance sheet, depends on it.