When Bill Clinton first campaigned to become president of the US, his support team coined the phrase: “It’s the economy, stupid.”
It was a means of simplifying the strategy for Clinton and how he could appeal to American voters.
The majority of presidents of Cricket South Africa’s (CSA) provincial unions would do well to reflect on that catchphrase.
Last week’s financial report tabled at the organisation’s AGM paints a grim picture. A loss of R440m in the last financial year grabbed the headlines, but there was further bad news contained in CFO Tjaart van der Walt’s accompanying review.
Next year, CSA will likely make a loss again. That’s despite South Africa hosting three tours this summer, two by historic rivals, Australia and England.
The broadcast landscape for cricket has changed so drastically that what were once lucrative tours by those two nations are now loss-makers.
We are further embarking on a revised financial sustainability project, looking at the total cricket ecosystem to align CSA’s increasing cost base to the realities of the current and expected future revenues
— Tjaart van der Walt, Cricket SA’s CFO
CSA did sign a deal with Sky in the UK to show England’s tour here, but the numbers are believed to be lower than for previous tours. All of which impacts CSA’s income and its ability to run the sport locally.
This season there is an expanded domestic first-class competition and a restructured and bigger provincial T20 tournament that includes the division 2 teams facing the top eight provinces.
There are also two domestic women’s tournaments that must be run. All those cost money.
Financial statements
CSA’s financial statements show that last season’s costs for running the local game stood at R536m — that figure will be bigger next year.
It simply can’t continue.
“We are further embarking on a revised financial sustainability project, looking at the total cricket ecosystem to align CSA’s increasing cost base to the realities of the current and expected future revenues,” Van der Walt wrote in his review.
The trouble is that CSA already tried something similar last year. A wide range of voices were heard from, including provincial CEOs, the players’ union and coaches but, despite their recommendations, CSA failed to get near the target of R200m in savings.
Broadcast deals are plummeting, and CSA, like other national affiliates of the International Cricket Council, has been informed by the global governing body that its financial distribution will be lower when the next rights deal is signed in 2027.
Costs will have to be reduced, but following the last sustainability review, the most notable cut made by CSA was to the number of professional player contracts at the provincial level.
Far more drastic action is needed. Frankly, the number of provinces needs to be reduced because the figure of 15 is unsustainable.
Provincial administrators seem blind to that, however.
Under administration
Witness last week’s AGM, where four unions were not allowed to vote for new directors on CSA’s board.
Border and Northern Cape remain under administration, but despite knowing that, the unions of North West and Boland — two first division organisations, one of whom is a host of an SA20 franchise — failed to meet CSA’s requirements as “members in good standing.”
They didn’t host their own AGMs in time and didn’t submit financial records.
Failing to adhere to those basic standards does not reflect a serious organisation with administrators who understand the precipice on which South African cricket is teetering.
It is thus alarming that there is believed to be an increasing group of provincial presidents who feel the number of independent directors on the board should be reduced and non-independents should be in the majority again.
It was less than 10 years ago that just such a structure, led by provincial union presidents, nearly destroyed CSA.
There are serious decisions that have to be taken by CSA’s leadership in the next 24 months. The petty politicking that has continued in cricket boardrooms at the provincial level must end.
Eventually, it will come down to dollars and cents, and then whether you’re the president of Boland, Mpumalanga, Eastern Province, Limpopo or North West, you will be confronted with an ugly reality.
“It’s the economy, stupid.”
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