Cricket 12.9.2015 05:17 pm

CSA announce R108 million profit for 2015 financial year

FILE PICTURE: CSA President Chris Nenzani. Picture: Duif du Toit/Gallo Images.

FILE PICTURE: CSA President Chris Nenzani. Picture: Duif du Toit/Gallo Images.

Cricket SA (CSA) announced at their Annual General Meeting a profit of R108 million for the 2015 financial year, at OR Tambo International airport, on Saturday.

The cricketing body had projected a loss of R106m, but an increase in sponsorship by 16 percent as well as the struggling Rand helped CSA turn around their financial situation. The broadcast revenue for CSA made up 55 percent of its profits.

The total revenue for CSA for the year totalled R765m, added to their financial income of R38m for a figure of R803m. Offset by R695m in expenses, CSA were left with their substantial profit of over R100m.

Though CSA’s profit was significant, it was down on 2014’s net profit of R199m and 2013’s R133m.

CSA president Chris Nenzani said there was a continued pursuit of aggressive and progressive transformation targets.

“With over R200m spent on development across the country in 2015, members are now measured on their contribution towards the overall Transformation goal of CSA,” said Nenzani.

“Transformation remains a key strategic goal for CSA in pursuit of excellence and redress. It is my firm belief that the majority of the people of the country expect us to advance Transformation and for us to take such actions as necessary to ensure a truly national character for cricket. We remain committed to achieving the Transformation targets set by government.”

As part of a four-year cycle which started on May 1, 2014, and ending on April 30, 2018, CSA identified five key sources of revenue.

First, was international and Domestic Broadcast Rights, which would fluctuate depending on the Future Tours Program.

Second would be the distributions from the ICC depending on the world cricketing body’s events.

Third, predictably, would be sponsorship. Fourth would be from ticket sales, financial income including interest and Forex gains. Fifth would be ensuring there were adequate cash reserves for CSA at an estimated R500m.

Cricket South Africa CEO Haroon Lorgat said franchises would be funded on an activity-based basis according to an operation model instituted for the 2014/2015 season.

“We fund franchises on an activity-based basis. We plan the activities, fund the activities and then score the activities so we can provide incentives. We aim to have heightened accountability,” said Lorgat.

The allocated funding by CSA for franchises increased by 31 percent in 2015. As part of the new operational model initiated, the Africa T20 Tournament which was launched in September also plays a key role.

As part of a second operational model for the 2015/2016 season, CSA planned to evaluate the operational effectiveness of the Stadium Operating Model. Better member engagement through audits and cricket roadshows and admin and finance strategies would be implemented. Also performance management at members would be critical.

“We want to govern better, track every one of our activities and make sure the targets in the system must be achieved and possibly sanctioned if they are not met,” said Lorgat.

CSA also outlined its strategy to managing schools cricket. The three main areas here were monitoring the traditional cricketing schools, focus schools and provincial academies.

With traditional schools, the emphasis was to influence these schools to assist CSA in its transformation objectives by actively attracting black talent to their schools and through the resources speed up the development of identified talent.

In focus schools, it meant monitoring schools where cricket was previously played but had since lacked the resources like coaching to continue producing talent, despite the facilities already in place.

The aim was to improve the number of matches for disadvantaged schools played. As an example, a disadvantaged school might play five matches during the season compared to the 30 or more matches the traditional cricketing schools were playing.

Provincial academies would provide the link between schools and franchise level.

In other decisions taken at the AGM on Saturday, the Members resolved to terminate the Associate Member status of both Kei Cricket Board and KwaZulu-Natal Inland Cricket Union largely due to poor governance and administrative issues. They will now be incorporated into the existing Border and KwaZulu-Natal Affiliate Member structures. The cricket playing structures remain unchanged.

The meeting also passed various amendments to the Company’s Memorandum of Incorporation (MOI) that, inter alia, clarifies the types of Membership, the powers of the Board and Members Council and requires all Members, Clubs and Officials to follow a prescribed Dispute Resolution process.

The AGM also dealt with the election of two Non-Independent Directors and the re-appointment of two Independent Directors. Rihan Richards and Zola Thamae were elected by the Members as Non-Independents and Norman Arendse SC and Adv. Vusi Pikoli were appointed to serve a second and final three-year term of office as Independent Directors of the company.

 

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