SA board facing financial crisis
(CSA) more than half the money it has in the bank.
Asked at a press conference yest about the scale of the losses the T20GL would incur‚ CSA acting chief executive Thabang Moroe reeled off a list of startling figures.
“At the moment we’re looking at a net loss of $25-million (R342 370 million)‚” Moroe said.
“For the big teams, the teams in Joburg‚ Pretoria and Cape Town, you’re looking at a loss of $1.5-million (R20.6 million).
“From a broadcast point of view‚ combining local and global rights‚ you’re looking at an accumulative figure of $17-million (R234.4 million) to $18-million (R248.1 million)‚ roughly.”
CSA reported a credit balance of R655 444 million in their 2016-17 annual report‚ which was tabled in April.
Considering the financial calamity the T20GL is becoming and the fact that CSA have committed R350-million to infrastructure upgrades over the next three years‚ the game could be staring at an empty banking account.
Moroe admitted CSA have been forced to lower their expectations of what the tournament would earn.
“Initially we were looking at a total net revenue of US$32 million (R438 million) as far as TV and central sponsorship are concerned. At the moment it will be in its 20s.
“We have cut down but not to wane the quality of the tournament. We’re making sure our members are not the ones who get hurt the most.
“Hopefully‚ depending on how well we negotiate with the broadcasters‚ the team owners will break even in year three.”
One of the T20GL’s eight franchises has already changed hands‚ but Moroe promised stability.
“All owners are committed to staying in the league‚” he said. “The owners are happy to accept those losses for the first two years.”
But they won’t be happy that‚ with the first ball scheduled to be bowled on November 3‚ broadcast deals have yet to be agreed and sponsors signed.
“We are currently busy negotiating all broadcast deals. It’s just a matter of agreeing on finer details,” said Moroe.
Moroe‚ CSA’s vice-president‚ stepped into a void created last Monday‚ when the board and CEO Haroon Lorgat parted ways. — TimesLIVE