Sale of SA20 franchises & broadcast rights have bolstered CSA

The SA20 has been tremendous fun and showcased some great cricket, but let’s not forget its primary function is to bolster South African cricket’s finances. Happily, the sale of franchises and broadcast rights has gone really well for Cricket South Africa.

Most unusually for a start-up T20 league, the SA20 is expected to show profitability after Year One. That means after the other shareholders and franchises have taken their share, CSA are expecting to get a few million dollars by way of a dividend. As one insider put it “It won’t yet move the needle on our financial situation, but we are cautiously optimistic for the first time in a long time.”

Read more: SA20 RECAP – Everything you need to know so far

CSA recorded a R200 million loss in the last financial year, which is a 10% improvement on what was budgeted. Insiders say the financial problems started when CSA spent a decade really trying to grow the game, but their expansionary policies meant their costs exploded and then their revenues dived.

Different landscape

In terms of broadcast rights, there is now a totally different landscape from five years ago. India now make up about 65% of all broadcast revenue for the game and the popularity of T20 has risen drastically, while the amounts for Test cricket have dropped spectacularly. This meant that even with Australia and England touring South Africa, those tours still made a loss, for the first time ever.

CSA’s next big landmark would be the sale of the Proteas’ sponsorships rights. It has been a struggle, and their marquee product – the men’s national team – not performing well truly does affect everything.

Unlike some who have sat on the CSA board, current CEO Pholetsi Moseki understands full well that ensuring the Proteas do well is his core business. But the departure of Standard Bank as key sponsors has left CSA with a R100 million hole in their coffers and they had to cut 20% of their budget or find themselves in serious financial trouble.

Read more: Two head coaches – Not best business sense, but good for Proteas, says CEO

CSA are optimistic though that, by the end of the financial year, they will have a team sponsor with global reach in place.

SABC

Speaking of reach, it is unfortunate that the SA20 is not broadcast by the SABC, but then the national broadcaster as recently as this week declared a blackout on all Proteas cricket across all TV and radio stations. Not coincidentally, they were busy negotiating a new deal with CSA, who obviously want the game to be accessible to as many homes as possible in South Africa.

The SABC, in true SOE fashion, believe they are entitled to a broadcast deal for next-to-nothing, which CSA really can’t afford in their financial state. The SABC’s lack of appetite to free up time for cricket in their schedules, as well as their ongoing internal battles, makes CSA’s relationship with them exceptionally fraught.

Media muzzle

Since the departure of Thabang Moroe and Kugandrie Govender from the CEO chair, CSA have also come a long way in restoring their relationships with the players’ union, SACA, as well as the media, a handful of whom they tried to muzzle back in 2019.

SACA chief executive Andrew Breetzke is now a welcome visitor to CSA’s offices in Melrose Estate and they are working together with director of cricket Enoch Nkwe on the review of the domestic game. Moseki has publicly stated that they understand the importance of domestic cricket and will support any ideas that can stop its decline.

Going to CSA’s offices, it is also clear that the previous climate of fear in which staff felt they could not freely express their opinions has been replaced by a much happier vibe.

CSA is not in any imminent danger of collapsing, but the next couple of years are still going to be tough. But hopefully the worst is over.