|
Following is a joint press release from UCBSA & Cricket SA (Pty) Ltd attempting to squash recent rumours of financial difficulties.
STATE OF SOUTH AFRICAN CRICKET
South African cricket is on a sound financial footing and has the full backing of major sponsors and the general public, according to Gerald Majola, Chief Executive Officer of the United Cricket Board of South Africa.
In a statement issued today, Majola said: “Speculation in some media circles that South African cricket could be bankrupt within 18 months is absolute nonsense.
“The UCBSA has embarked on a necessary reconstructuring process in a timely and pro-active manner. This is hardly a financial crisis that has caught UCBSA unawares as some commentators have implied.
“The UCBSA’s Annual Report, due to be released on Saturday, will show that we have achieved an operating profit when an operating loss was predicted in earlier budgets.
“We have also increased our sponsorship base annually by R25-m over the last season.
“We have the backing of major sponsors such as Standard Bank, SA Breweries, SABC, SuperSport, National Brands, SA Airways, Southern Sun, Mutual and Federal, Coca-Cola, PG Bison, Energade, Budget, and Hummel.
“While MTN has decided not to renew its contract to focus on football and the World Cup 2010, there is a strong possibility that MTN will remain as our official cell phone supplier.
“MTN’s other contribution will be taken up by existing and new sponsors and details will be announced soon.
“For instance, SA Airways has signed as sponsor of the new provincial amateur league which is a first for South African cricket.”
The details of the sponsorship are due to be announced soon.
Majola said that independent research by BMI has shown that cricket was the second most popular sport in South Africa for the fourth successive year.
“The new franchise system for professional domestic cricket was successfully launched last season. This has put an end to escalating costs compared to the cumbersome 11-team system, and the strength-vs-strength product has been welcomed by players, sponsors and the public.
“Another new sponsorship is the Standard Bank Pro20 Series. This has proved an out-and-out hit, attracting record crowds.
“The National Team is fully supported by the South African public and we had a bumper year all round with the England tour”, Majola said.
“We have shown an operating profit, despite an operating loss being predicted in earlier budgets.
“We have also been able to increase, when comparing 2003/4 to 2004/5, our allocations to Affiliates for amateur cricket by a significant R15-m off a base of R30m – an increase of about 50%.
“However, we were hit hard by the strong rand. This denied us the opportunity of returning a healthy surplus that would have protected our reserves.
“Had the rand/dollar exchange rate remained as it was three years ago, we would have had an extra R50-m in our coffers in the 2004/5 season.
Majola said that affiliates had been cautioned that the next three years were likely to see foreign TV revenues dropping compared to the bumper England tour of last season.
“Some media commentators are misinterpreting our tighten-belts message for the next three years as a signal of a major financial crisis.
“It is true that the strong rand is impacting negatively on us, as is the case with many major South African companies. But we have in place measures to counter this.
“It is obvious that we have to find ways of expanding revenue sights beyond international TV rights, and to continue improving efficiencies and reducing costs.
“We have introduced a culture of strict cost control measures and internal auditing.
“We are also the only sporting to have been awarded International Standards Organisation (ISO) accreditation which means that our systems are continuously audited by the SA Bureau of Standards.
“Together with this, UCBSA:
- Has loyal sponsors;
- A transformation programme that has been described by the Government as the best in South African sport;
- Is listed as one of SA’s top empowerment companies;
- Has an excellent high performance programme
- A formidable national team with wide public support.
“From this base, South African cricket is ready, willing and able to meet the challenges that face us and make cricket a truly national sport of winners”, Majola said.
