Cricket Australia’s massive bank loan

Cricket Australia (CA) officials have told stakeholders a A$50 million loan with the Commonwealth Bank is a ‘‘done deal’’, a development that has triggered fresh questions about the governing body’s decision to stand down most of its staff for a saving of A$3m.

As Australian coach Justin Langer, himself reduced to a part-time wage, said a renewed emphasis on club and state cricket coming out of coronavirus was ‘‘an amazing opportunity’’, the fallout from CA’s painful cost cutting last month continues.

The board of the Australian Cricketers’ Association, whose president is former test all-rounder Shane Watson, will convene early this week to formalise a position on the state of the game’s finances, which have been painted in a bleak manner by CA chief executive Kevin Roberts.

There will be another session, meanwhile, between CA and state associations today around the proposal for them to take a 25 per cent reduction in grants from head office.

The players’ union has told its members via email it is ‘‘optimistic that the game is in a good financial position’’, a sentiment emboldened by the game’s securing of a loan facility.

Sources with knowledge of the talks between CA and stakeholders say that the governing body has made it clear that it will soon have access to a A$50m line of credit from the Commonwealth

Bank, a long-time commercial partner, after seeking an up-front loan as part of its application for a larger amount of up to A$200m to cover major losses in the event that India cannot tour this summer.

That is unlikely to go down well with the more than 200 CA staff who have been stood down on 20 per cent pay until the end of next month.

Roberts, who remains on 80 per cent of his estimated A$1.2m salary, said last month the measure was saving CA A$3m and he last week apologised to staff in a video address for not giving them enough warning about the stand downs.

The cuts were made amid fears expressed by the chief executive that CA would run out of money by August without drastic action being taken.