· Cricket enters its current four-year business cycle in a strong position due to new broadcast and commercial partnerships
· 2012-13 single year result is part of CA’s well-established four year financial cycle. Yearly revenue growth and result fluctuates depending on visiting teams each year. Revenue is growing each four year cycle
· Operating result for 2012-13 before distributions to Members was $41m
· Distributions to state associations increased by 8 per cent, allowing more money to be invested in grassroots cricket
· CA will invest more in grassroots programs in 2013-14 via the strategic investment fund established in June 2013
· Cricket revenue mix is changing with a higher proportion of domestically sourced revenue
· Attendances are at an all-time high with the mix between formats evolving
· Cricket participation has reached a record 952,000, a 5 per cent/year increase over the last decade
New broadcast and commercial partnerships have Australian cricket set for continued growth, the 2013 Cricket Australia Annual General Meeting (AGM) heard today.
Revenue grew 63 per cent to $684m over cricket’s four-year reporting cycle (2009-2012), up from $418m (2004-2008) and is projected to grow to $1.083b for the next four-year cycle.
Cricket revenue is recorded over the four year period due to annual fluctuations in income derived from teams touring Australia with the adoption of financial policy that allows for the smoothing of member distributions and player payments. This ensures the consistent funding of game development programs and activities.
The AGM was told that CA is on track to record strong revenue growth over the next four year cycle, achieving its strategic goal of having $70m in cash reserves by 2016-17 to future-proof the game against any unforeseen event.
The AGM also discussed that while the Ashes results were disappointing for the men’s and women’s teams, the implementation of recommendations from the Australian Team Performance Review were intended to create a performance-based culture and achieve the long-term goal of producing the best teams, players and officials in the world.
Meanwhile, cricket continued to make good progress against a range of its strategic goals, including an emphasis on better aligning CA and its Member State Associations as one efficient Australian cricket organisation.
Cricket’s revenue mix is also changing with a higher proportion of locally sourced income from new local broadcast and commercial partnerships. During the next four year cycle, 65% of cricket’s media rights revenues will be generated locally compared to 53% during the previous cycle.
The AGM heard that the CA’s strategic investment, as a result of its increased revenue, would be targeted on specific regions and projects around the country.
Some of the initiatives approved so far include:
· Restructure of Women’s Player Contracts
o Significant increase in retainer and tour payments for Commonwealth Bank Southern Stars players to make them the best paid sportswomen in Australia
· Contribution to proposed Victorian Cricket & Community Centre
o $4m contributed towards the building of a facility that will be built for everyone in the community , including those from regional Australia and diverse backgrounds
· Regional development funding for NSW and ACT
o Funding provided for facilities, development programs and staff in targeted areas
· Seed funding for a National Community Cricket Facilities Fund
o CA working with states to develop a national program to fund community facilities projects
· In partnership with Clontarf Foundation
o Engaged more than 1000 Indigenous students across the Kimberley's, Darwin, Central Australia and New South Wales in a pilot cricket program
· Increased funding for all Big Bash League teams
o Including funding available for fan and community engagement initiatives in key strategic markets
Today’s AGM also voted to introduce a remuneration policy for CA Directors to bring Cricket Australia into line with a number of other major professional sports in Australia. Directors will receive a fee of $25,000 per annum with the Chairman receiving $165,000 in recognition of the significant commitments required of the role.
CA’s AGM also voted today to accept CA’s Annual Report and financial accounts.