CSA announce R221 million loss at first AGM of the new Board of Directors
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Johannesburg – The impact of the Covid-19 pandemic on Cricket South Africa’s coffers was outlined at the organisation’s Annual General Meeting on Saturday, with revenue decreasing by nearly half a billion rand.
The first AGM run by the new Board of Directors, provided a sobering financial picture for the organisation, which had been mired in administrative controversy recently.
The chairman of the Board’s Financial and Commercial sub-committee Mark Rayner presented the financial report for the year ending April 2021, indicating that CSA’s revenue had dropped from R1-billion to R512-million with a loss of R221-million for the financial year. He said that it was primarily due to the Covid-19 pandemic, which after initially seeing cricket stopped then saw teams like England and Australia either not fulfill their full list of fixtures in this country, or call off a tour completely as the Australians did in March.
“The impact on income was significant, with the lack of cricket being played,” said Rayner.
Another factor, Rayner outlined, was the strengthening of the rand, which saw a profit of R89-million in foreing exchange last year turned into a R12-million loss this year. Rayner outlined that CSA’s quick action in reducing expenses allowed it to absorb a lot of financial pain, with expenses decreasing from R1.2-billion to R700-million
“We have managed to mitigate the impact as swiftly and expediently as we can,” said Rayner.
There was some good news on the financial front, with Rayner stating that he was “comfortable with the (organisation’s) financial position.”
“CSA remains a healthy organisation and a liquid one,” said Rayner. “There still is cash in the balance sheet of R121-million and investments that will mature in the short term, very close to cash of a further R363-million.”
An incoming tour in the summer by India, will provide a significant boost. “We are seeing green shoots of sponsor interest in the organisation after a difficult couple of years in this regard,” Rayner added.
In his address to the AGM, Sport Minister Nathi Mthethwa reminded the Board and the Members Council to take heed of testimony arising from the Social Justice and Nation Building hearings, while indicating that CSA was also setting an example for other sports bodies in the country to follow.
“If we decide to bury our heads in the sand and think that things will just dissipate, we stand the chance of repeating the follies of the past,” said Mthethwa.
“We see the SJN exercise as a case study, which, if handled honestly, will assist the rest of the sport movement, as they also introspect. Those who assume that what the hearings revealed, pertained only to cricket, should think again, because truth be told, sport as a whole, has a challenge.”
“The difference between cricket and other sporting codes is that cricket itself took the step to try and address the challenges.”
Mthethwa, also reminded CSA that the appointment of its next CEO, will be done within the context of what has emerged at the SJN. “If I may be blunt, we can’t have, in the top echelons of cricket, only one race to the exclusion of others.”
In some quarters that may be viewed as interference, given that Mthethwa has not previously remarked publicly about the senior office-bearers in other sports organisations in South Africa.