NZC faces financial challenges after posting loss

New Zealand Cricket is anticipating a ‘‘challenging’’ next financial year after returning another loss, $2.3 million below its forecast for 2018-19.

NZC’s annual report, presented at this week’s annual meeting in Auckland, revealed a $1.3m net loss for the past year after losses of $3.5m (2018) and $9.3m (2017). According to the report, NZC budgeted for a $1m profit in 2018-19.

A third successive deficit was forecast as recently as May, largely due to the International Cricket Council rescheduling its back-ended annual payments of the US$128 million (NZ$199m) it pledged to NZC between 2016 and 2023.

That led to a stormy meeting in May between NZC and its six Major Associations (MAs), when they were asked to look at financial cuts and structural changes amid uncertainty over how much money they would receive from the national body this year.

NZC grants to its associations increased by around $800,000, to $12.06m from $11.27m.

The annual report’s financial summary read: ‘‘The outlook for the 2020 financial year remains challenging, as NZC enters the final year of current broadcast arrangements and a number of commercial contracts.

‘‘The outlook to 2023 is positive, with revenue growth opportunities and with ICC distributions remaining strong as the cycle to 2023 is completed.’’

NZC’s broadcast rights deal with Sky – understood to be in the vicinity of $60m – expires at the end of this season after Spark won the rights to home internationals and domestic cricket for the next six years with an offer NZC couldn’t refuse.

Sky chief executive Martin Stewart said last month it ‘‘got outbid by miles’’ by Spark.

NZC’s operating revenue was $59.15m in 2018-19, up from $52.89m the previous year. But its cash reserves were down to $14.2m, a drop of more than $5m from the previous year’s $19.97m.

At the annual meeting NZC welcomed two new directors while chairman Greg Barclay successfully stood for re-election.

Jackie Lloyd, with an extensive background in private and public organisations, and Kevin Malloy, prominent in the advertising and marketing industries, joined the eight-strong board, replacing outgoing directors Neil Craig and Ingrid Cronin-Knight.

Debbie Hockley was re-elected as president for a second threeyear term.

Three new life members were elected: former New Zealand test batswoman Judi McCarthy (nee Doull) and two members of the successful men’s team of the 1980s – John Bracewell and Jeff Crowe.