Australian cricket could lose $ 120 million in revenue | Instant News

Cricket Australia is gearing up for a $ 120 million drop in revenue this summer after posting a $ 45.9 million deficit last financial year.

The crowd restrictions and biosecurity costs for the looming India tour will leave another big impact on CA’s finances.

CA registered a deficit of $ 45.9 million in the year ended June 30 despite cutting 40 jobs amid the coronavirus pandemic.

CA Chairman Earl Eddings said about $ 120 million in revenue could be lost this financial year.

“It’s still a bit unclear,” Eddings told reporters on Thursday.

“We have included the cost of COVID biosecurity in that (estimate), hopefully after Christmas it will be reduced which may make a less big impact.

“It takes into account crowd losses and crowd income from us.

“And also remember we had the postponement of the T20 World Cup, which has been postponed until 2022.

“So it all has an impact on revenues for this year.”

Australia was scheduled to host the Twenty20 World Cup in October and November, but the tournament was postponed due to COVID-19.

India will play four Tests, three one day and three T20 matches in Australia from late November before crowds are limited due to coronavirus protocol.

The CA says a $ 45.9 deficit in the last financial year is projected in a four-year cycle that relies heavily on money generated from international tours.

Only low-profile New Zealand and Pakistan toured Australia in the last financial year.

CA Director Paul Green, chair of the organization’s risk and audit committee, said the deficit was “in line with our budget and broader long-term plans”.

Green said at the CA’s annual general meeting on Thursday that COVID-19 presents “the prospect of some of the more severe implications to come”.

“At current estimates, these factors could create a financial cost for cricket of up to $ 120 million in FY21,” he said.

CA saved $ 40 million by sending operational changes including 40 job reductions in the organization.

But there is still uncertainty about how much CA will receive from Seven Network for broadcast rights this summer.

Seven wants a sizeable reduction to his $ 75 million a year fee, concerned about the quality of the Big Bash League given the scarcity of international players and the possible unavailability of an Australian front line for the tournament.

CA and Seven have requested an award on entitlement fees from the Australian Chamber of International and Commercial Arbitration.

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