Cricket Australia's woes lie in stock-market rout

SYDNEY • Cricket Australia (CA) chief executive Kevin Roberts has reportedly told staff that the governing body would not have been able to pay its bills at the end of August without layoffs, with a stock-market gamble contributing to its financial plight.

CA announced plans to lay off almost 80 per cent of staff on Thursday, putting them on 20 per cent pay until June 30 when it is hoped more will be known about how long government curbs to control the coronavirus will last.

The Australian and The Age newspapers have reported that CA's financial reserves had been hit by a slump in the world's stock markets caused by the Covid-19 pandemic.

Sources told The Age that Roberts informed senior players that CA had lost some A$40 million (S$36.2 million) in shares, almost half the A$90 million listed under investments in last year's financial report. But the association claims the loss is less than A$5 million.

Its cash assets dipped to A$26.6 million last June, according to its 2018/19 financial report, down some A$175 million in three years.

No one at CA was immediately available for comment yesterday.

On Thursday, CA had said in a statement that the "impacts on the sports industry of the coronavirus pandemic are bigger than any one sport".

"We are conscious of the impact this will have on Australian cricket and are working hard to manage that proactively," it added. "We will continue to seek advice from medical experts and relevant government agencies to ensure the health and safety of our people, volunteers and communities, and to return to business as soon as possible."

The coronavirus has infected more than 6,500 people in Australia and killed 69.

All sports in Australia have been hit hard but cricket was expected to weather the storm better than most, given the season was all but completed by the time the restrictions came into force.

The first of three matches in a one-day series against New Zealand was played behind closed doors at the Sydney Cricket Ground on March 13 before the final two fixtures were postponed.

CA would have expected two big paydays this year. The country is scheduled to host the men's Twenty20 World Cup in October and November, before India arrive for a four-Test Tour - worth A$300 million - around the New Year. Any impact of the coronavirus shutdown on those events would have a major financial impact on CA.

REUTERS