Cricket Australia has secured a loan of USD 50 million, an upfront payment as part of a larger USD 200 million credit, which it has sought to cover the losses if India fail to tour the country towards the end of the year due to the novel coronavirus pandemic.
India are scheduled to visit Australia later this year for a blockbuster four-match Test series. However, there are doubts over the series because of the coronavirus pandemic. As things stand, all the international series and major domestic events are currently suspended due to the pandemic.
While there is still some time left before the Test series, the way things are unfolding at the moment, the signs are not at all encouraging. And if the series is cancelled, it could cost Cricket Australia up to a staggering $300 million in lost TV revenue according to local reports.
The cricket board is under huge financial pressure due to global lockdown and has laid off 80 percent of its staff. Cricket Australia is looking forward to the Test series against India as it could provide a much-needed financial relief.
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 the governing body’s decision to stand down 80 per cent of its staff.
CA stood down more than 200 staff on 20 per cent 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 USD 3 million, is in question now with the governing body securing USD 50 million loan.
The report further stated that while Roberts, himself, is still earning 80 per cent of his salary, he is set to propose to state associations a 25 per cent reduction in grants from CA.