With the Ashes series in Australia fast approaching, the UK television rights deal has turned out to be well below expectations. Sources say BT Sport, which owned the rights, and its main competitor Sky Sports were both “dead”, leaving BT with the deal with a $40 million cost cut.
There was also a loss of $40 million on a contract for overseas television rights. Cricket Australia sent an invoice to Sony, only to be told that a mistake had been made by CA and that much less money was owed.
Local free-to-air television rights broadcaster Channel 7 has publicly harangued Cricket Australia in an attempt to win a significant reduction in rights in a dispute that has resulted in legal action.
As a result of the arbitration, Channel 7 received $5.3 million, significantly less than the original rebate offered by Cricket Australia. Fox, which has more cricket content than Channel 7, including exclusive rights to Twenty20 and one-day internationals, received more compensation.
COVID-19 biosecurity costs amounted to nearly $30 million last year, including charter planes, to ensure the season ran as planned, especially the Twenty20, One-Day and Test against India.
An additional $20 million in biosecurity costs have been projected for this season, with ash as the centerpiece.
When asked if Australian cricket was unsustainable, Hockley replied to the Herald and age that Cricket Australia had $70 million in reserves and had been hit by $50 million in unforeseen COVID costs.
“What we are working to do now is come together to build a strategy that is going to put us on the path to sustainability and ensure that we protect the game against any future financial shocks like the one we just experienced thanks to COVID,” Hockley said.
“We need to make sure cricket is on a solid and sustainable financial path. This report gives us a very clear factual basis of all activity, where all costs are distributed across the network, ensuring that we direct our investments to the activities that will generate the greatest return.
“We are a non-profit organization [organisation] and our goal is to develop the game at all levels. We were able to reinvest in those growth areas. This includes the growth of the sport for women and girls, and the WBBL is arguably the most important women’s cricket league in the world.
“We have also invested heavily in growing the game at the community level. If we apply the same level of care to ensure cricket is truly welcoming and representative of the whole of Australian society, there is an opportunity for further growth if we engage a culturally diverse Australia.
While Eddings’ demise has resulted in a more inclusive and accountable Cricket Australia under interim chairman Richard Freudenstein, there are tensions between the governing body and state associations over who should fill the hole. financial black.
Freudenstein called a meeting of the states and the Australian Cricketers Association on Thursday to discuss the issues, something Eddings had refused to do all year.
The states agreed to a 12.5% reduction in the previous fiscal year and an additional 7.5% this year, which equates to a reduction of $22 million across the six states, although Eddings attempted to explain the reduction in this exercise as a 5% increase.
Under an agreement between CA and the States, CA must first review their cost base.
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