Minnows are just not cricket for CSA

THERE are cyclical industries and then there is cricket.

THERE are cyclical industries and then there is cricket.

Cricket South Africa's (CSA's) revenue - particularly for the top-level professional game - shot up in its most recent financial year from the prior year, thanks to inbound tours by Australia and India.

It is not just a question of how much local fans love the Proteas. What really matters is who they are up against.

After the Board of Control for Cricket in India threatened to curtail its visit to our shores last year, CSA's executives salvaged a decent tour and with it a healthy chunk of revenue.

Overall, CSA's revenue for financial 2014 was up 56% at R811-million, compared with R521-million in 2013.

All told, CSA, which employs 47 permanent staff, made a net profit of just under R200-million in the year, and has R383.7-million in cash on its balance sheet.

CSA's chief executive, Haroon Lorgat, said it was no good comparing any single year with a previous or following year as the revenue of the nonprofit organisation should be viewed in four-year cycles. Its business model was designed to balance itself over this period.

"Revenue is very dependent on scheduling. When we have major tours or receive International Cricket Council (ICC) distributions our revenues naturally increase," Lorgat said.

"This was evident with Australia and India touring last year and the world T20 tournament. When we have a less attractive team touring, obviously revenues would be less."

With two strong teams touring, CSA's revenue from the sale of broadcasting rights jumped from R159-million in 2013 to R431-million in 2014.

CSA recorded deficits in 2012 and 2013, but did much better in 2011 and 2014, the end of a four-year cycle.

Lorgat said that as CSA ran its business over four-year cycles, the profit it made in the past year, plus its cash on hand, would be reinvested to subsidise weaker forthcoming years.

The home summer programme for the Proteas included a three-match Test series against the West Indies.

"We have the peaks and troughs as a consequence of our future tours programme (FTP). It eventually balances out. 2018 is the end of our next cycle and we're looking to be sustainable over that period."

Lorgat said CSA expenses were typically R600-million a year. In good years the controlling body had to try to squirrel away R500-million to be safe.

Established in 2002, CSA has undertaken a review of its existing affiliates, which make up the six professional franchises, and associate members.

Between these, there are thought to be 34000 registered club cricketers in the country.

Lorgat said development formed a major part of CSA's annual spending, with amateur cricket enjoying a R157.3-million outlay from the umbrella body.

Dealing with the ICC, which is dominated by the powerful cricket boards of India, England and Australia, has become a challenging affair for CSA.

"We have not been well treated in the awarding of major ICC tournaments, and that has to be addressed," said CSA president Chris Nenzani.

South African cricket's financial fate will be substantially affected by bilateral tour agreements and the FTP through to 2023, which must be finalised and signed by next month.