Players set to fight CA over forecast of 50 per cent revenue hit
Cricket Australia is set for another pay dispute with players after presenting a grim financial forecast that includes a drop in revenue for next season of nearly 50 per cent.
The board of the Australian Cricketers' Association were meeting on Thursday afternoon to formalise a position but it is extremely doubtful players will accept Jolimont's projection.
Cricket Australia CEO Kevin Roberts has forecast a grim financial future for the organisation.Credit:Getty Images
Players are stunned that such a number could be presented given chief executive Kevin Roberts' 90 per cent confidence in India's lucrative tour next season going ahead as planned.
There is also a second reduction in predicted revenue for the 2021/22 season, when Australia will host the Ashes and possibly a men's Twenty20 World Cup should it be postponed by 12 months.
CA had expected a figure of $407 million before the pandemic but a near halving in revenue would see this drop to just over $200m. This is despite the Tests and one-day internationals against Virat Kohli's men being valued at over $300 million to CA's bottom line.
CA had believed there would be a 25 to 30 per cent drop if India were to tour but 50 per cent represents a worst case scenario. A 50 per cent reduction will result in player salaries taking a $56m hit.
Sources have told the Herald CA had indicated to players as recently as April that they had expected the revenue to rise to as much as $461m. There is also surprise at what players feel is a lack of detail to the presentation they received.
Players' pay is tied to cricket revenue under the model agreed to with CA after bitter and protracted negotiations over a new collective agreement in 2017.
Should cricket income exceed that predicted by CA, the difference goes into an adjustment ledger. This money sits in CA's coffers until the end of the pay deal in 2022 when it is paid to the players, allowing the governing body to have extra cash through the next two seasons.
Under a forecast that it would lose 50 per cent of its revenue, CA feared it would be $142min deficit by next June. It believed it could return to the positive through securing a $100m line of credit from the banks and savings of $65m from staff cuts ($37m) and reductions to state grants ($28m).