Cricket Australia secures $50 million mortgage as protection quilt
Cricket Australia has secured a loan of $50 million, an upfront payment as part of a larger $200 million credit, which it has sought to cover the losses if India fails to tour the country later this year due to the COVID-19 pandemic.
According to a report published in The Sydney Morning Herald, stakeholders have been informed that the loan with the Commonwealth Bank is a “done deal”.
However, it raised fresh questions about CA’s decision to stand down 80% of its staff due to financial crisis.
CA stood down more than 200 staff on 20% pay until the end of June with chief executive Kevin Roberts fearing they might run out of money by August if the drastic cuts were not made.
The decision, which had saved CA about $3 million, is in question now with the governing body securing $50 million loan. While Roberts, himself, is still earning 80% of his salary, he is set to propose to state associations a 25% reduction in grants from CA, the reports said.
CA is staring at losing a staggering A$300 million in the wake of the pandemic and India’s four-Test tour in December-January could provide relief to the struggling body.
Former Test all-rounder Shane Watson, who is the president of Australian Cricketers’ Association Board, will convene a meeting early next week “to formalise a position on the state of the game’s finances”.
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