Cricket SA budgets for R40m loss due to deal with broke SABC

Cricket SA budgets for R40m loss due to deal with broke SABC

- Cricket South Africa (CSA) has been forced to budget for a loss of R40 million after entering a deal with the SABC

- Despite several near critical setbacks and delays CSA is continuing to pursue its dream of hosting its own T20 league

- CSA and the SABC announced the deal which will see the tournament broadcast by the public broadcaster on Wednesday

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Cricket South Africa (CSA) has been forced to budget for a loss of R40 million after entering a broadcasting deal with the SABC. The deal forms part of CSA’s continued push to get its own T20 league tournament off the ground.

The proposed tournament which is still unnamed has had a difficult birth and has suffered numerous near critical setbacks and delays. The tournament has been slated to start on 9 November and will conclude on 16 December.

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CSA’s CEO Thabang Moroe explained that the R40 million shortfall includes all the costs related to hosting the tournament, paying for production costs related to the broadcasting of matches, player and match official salaries, official kit for players and match officials and other costs such as catering and accommodation.

Briefly.co.za gathered that Moroe said CSA had chosen to keep a tight control of all of its products which includes international cricket by keeping production in-house. He added that CSA’s board had instructed the body to stretch each rand as far as was possible.

Timeslive.co.za reported that Moroe is hoping that the real loss suffered by CSA would be significantly less than the budgeted R40 million but given current projections and a difficult four-year financial cycle for CSA the team had decided to take a cautious route with the budget.

SABC COO Chris Maroleng said the deal would be mutually beneficial and was helping the public broadcaster to open up other revenue streams and negotiating tactics.

Maroleng said he was unable to provide specific details about the deal because of the wording of the memorandum of understanding between the SABC and CSA did not allow for any public discussions about the terms of the deal.

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Sport24.com reported that the initial deal which is covered by the agreement is set to run for three years. The deal gives the SABC exclusive broadcasting rights to a major cricket event for the first time in decades.

CSA was left with little option but to strike a deal with the SABC after SuperSport withdrew from the tournament.

Moroe said CSA was prepared to face short-term financial pain and was focused on a mid to long-term strategy. He added that all major cricketing tournaments reported losses in their first year but those losses were recouped in subsequent tournaments.

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Source: Briefly.co.za

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