Reports | CA secure $50 million loan from Commonwealth Bank as cover for India series
Cricket Australia officials have told stakeholders a $50 million loan with Commonwealth Bank is already secured and that the amount will be saved as cover for the India series. ACA President Shane Watson will convene a meeting this week to formalise a position on the state of the game’s finances.
Cricket Australia President Kevin Roberts recently revealed that the board has cashflow issues which resulted in drastic cuts to the salaries of staff who have been stood down. That surprised many because the board had always claimed that they have sufficient reserves in the bank but later it was revealed that they had put money in the share markets in the form of equity.
An India series cancellation might have a cascading effect but reports have surfaced that the BCCI might extend their helping hand to lengthen the series to drive money into the CA account. In the wake of that possibility, Sydney Morning Herald reported that Cricket Australia secured $50 million loan from Commonwealth Bank as cover after seeking an up-front loan as part of its application for a larger amount of up to $200m.
Meanwhile, Australian Cricketers’ Association, headed by Shane Watson, will convene a meeting this week to formalise a position on the state of the game’s finances. Another meeting has been scheduled between CA and state associations around the proposal for them to take a 25 percent reduction in grants from head office.
The players have been communicated through an email from Australian Cricketers Association while Justin Langer, whose salary has been deducted by 50 %, has stated that another avenue might open up in such a case.