Reports | New Zealand Cricket set to post USD 2.3 M shortfall
BCCI
The New Zealand Cricket board is facing a dire financial crisis as they are expecting to post a loss in excess of two million USD for a third successive year. While the NZC had reported losses of USD 3.5 M in 2018 and USD 9.3 M in 2017, they are expecting a loss of USD 2.3 M in 2019.
While the New Zealand Cricket team is busy collecting laurels on the field of cricket, the state of New Zealand Cricket seem to be very dire. The board is facing a serious financial issue as it anticipates a loss of USD 2.3 M in the year 2019 after the organising body budgeted for a profit of USD 1m this year.
A third successive deficit was forecast as recently as May, largely due to the International Cricket Council rescheduling its back-ended annual payments of the USD128 M (NZ$199 M) it pledged to NZC between 2016 and 2023.
If the reports end up being true, this will be the third successive year when NZC has posted a loss in excess of USD 2 M. The organising body had reported losses of USD 3.5 M in 2018 and USD 9.3 M in 2017. A majority of it is expected after a couple of major ICC events which will be held in India: the Twenty20 World Cup in 2021 and 50-over World Cup in 2023.
The annual report's financial summary read: "The outlook for the 2020 financial year remains challenging, as NZC enters the final year of current broadcast arrangements and a number of commercial contracts. This means a continued focus on operational spend and delivering on the opportunities from England, India and Australia touring. The outlook to 2023 is positive, with revenue growth opportunities and with ICC distributions remaining strong as the cycle to 2023 is completed."
The NZC held a meeting with its major associations and reports claim that financial cuts and structural changes were recommended amid uncertainty over how much money they would receive from the national body this year. NZC grants to its associations increased to USD 12.06 MÂ from USD 11.27 M, with a hike by around $800,000.
India's tour last summer generated USD 2.5 M in revenue, the report said. White has previously said gate sales amount to 10 per cent of NZC's annual income and with Virat Kohli's India returning for a full series against the Black Caps in January-February the forecasts will be positive.
