Donations, Cuts and Furloughs or Not!

No salary cuts for Pakistan, Indian, players "at present”.

PTG Editor.

Sunday, 5 April 2020.

PTG 3074-15222.

News reports say the Pakistan Cricket Board (PCB} has indicated that while the current situation is being monitored, there will be no pay cuts for players in the PCB’S current financial year which ends on 30 June.  A PCB official said: "There will be no salary cuts in the 2019-20 financial year. We have put in place systems to ensure that monthly salaries are paid on time and without delay. We are monitoring the situation in the country closely as it evolves and will amend our policies when appropriate".

Around the same time Board of Control for Cricket in India (BCCI) Treasurer Arun Dhumal made it clear that the board wasn't looking at deducting the salary of players at present, even though the economic situation "is a setback” for the BCCI.  He told journalists of Saturday: "No, we have not spoken about [a salary cut]. Whatever the steps after this setback, they will be taken judiciously and keeping the interest of all people in mind. Any step taken needs to be thought out and right now we haven't even thought about it”.

The Cricketer | 03/04/2020

England's centrally contracted players to donate £500,000 as part of coronavirus response

England’s women have also volunteered to reduce their salaries through April, May and June, in line with their coaches and support staff

England men’s centrally contracted players have made an initial donation of £500,000 to the ECB and selected good causes in light of the coronavirus crisis, a statement from the Professional Cricketers’ Association has announced.

The precise details of the charitable donations are to be decided over the next week by the players; the contribution is the equivalent of all of the players taking a 20 per cent reduction in their monthly retainers for the next three months.

The players will continue to discuss the ever-changing situation with the national governing body and will consider how best to support the cricketing and wider community.

England’s women have also volunteered to reduce their salaries through April, May and June, in line with their coaches and support staff.

Captain Heather Knight, who has also volunteered as part of the NHS volunteer scheme, said: “All the players felt like it was the right response in the current climate to take a pay cut in line with what our support staff are taking.

“We know how the current situation is affecting the game and we want to help as much as we can. We will be discussing with the ECB further ways we can help the game in the coming weeks.”

The news comes 48 hours after ECB chief executive Tom Harrison took a voluntary 25 per cent reduction in his salary for two months as part of the governing body’s attempts to lower central costs amid the COVID-19 pandemic.

The measures came into effect from April 1, with the executive management team and board receiving a salary drop of 20 per cent, while measures are in place to consult with staff on reducing all employees' salaries for two months.

Proposed cuts will vary according to the employee’s job grade, with all other employees set to have their pay temporarily cut between 10 and 25 per cent.

Some staff are also being asked to consent to furloughing through the Coronavirus Job Retention Scheme put in place by the government, with the ECB supplementing their pay to ensure that they retain 100 per cent of their reduced salary.

All recruitment is also being frozen for the rest of 2020, with critical posts only filled in the event that an employee leaves the ECB.

“Cricket is facing the biggest challenge it has encountered in the modern era, and I am acutely aware of the hardships many across the cricket family are facing both on a personal and professional level,” Harrison said.

“We are working in partnership with the cricket community to establish how we lead cricket’s response to COVID-19.

“Our three guiding principles remain. Firstly, to ensure people’s safety, including everyone in the cricket family and our own ECB colleagues. Secondly, to protect cricket’s businesses, and the jobs of those who work within the game. And thirdly, to work in partnership through these unprecedented circumstances.”

Twenty-four hours earlier, the ECB moved to ease the financial burden on the domestic and recreational game by offering an emergency package worth £61 million to help the sport survive the coronavirus outbreak.

All levels of the game have been suspended amid a partial lockdown of the country, with the summer schedule set to be heavily affected.

While the ECB are putting together a fixture list in the event that cricket is able to return in the coming months, the governing body are conscious of the damage the delay or even complete cancellation of the campaign will do.

Therefore, funds are being made available to first-class counties and county cricket boards to help ease the burden during this difficult period - with more to come if the crisis continues.

Forty million pounds will be released immediately in the form of early partnership and facilities maintenance payments - an outlay which includes £1.3 million due from The Hundred. For those counties for whom these instalments are not due, £5.5 million will be made available.

Additionally, venues which were due to host international matches in 2020 will have another four months to fulfil the payments. They will be written off entirely if the matches are cancelled.

For the recreational game, around £20m is being provided by the ECB through an interest-free loan scheme and grants via the 'return to cricket' policy. Furthermore, there is a 12-month holiday for loan repayments.

Harrison added on Wednesday: “Yesterday, we rolled out an interim financial package which is fundamental to ensuring the short-term survival of the professional and recreational cricket network. Despite this, the financial situation remains challenging, so our support must be ongoing.

“Today, we have made a difficult but important announcement to cut central costs through a number of measures – all with a desire to protect jobs in the long-term and ensure we are better prepared to weather the storm ahead.

“I am extremely proud of the brilliant and passionate people who work at the ECB and their dedication during this crisis. But the challenge we are facing – not only in our sport but across the whole country – is exceptional and I know most organisations are having to make tough decisions.

“That being said, I am confident that through careful planning and by working together as a sport, we can get through this and see our wonderful sport and its communities thrive again in the very near future.”

EWCB suspend amateur club loan repayments.
The Cricketer Magazine.

Saturday, 28 March 2020.

PTG 3068-15192.

Loan repayments for amateur clubs to the England and Wales Cricket Board’s (EWCB) subsidiary charity have been suspended until May 2021 as part of the national governing body’s efforts to support the game at grassroots level through the coronavirus crisis.  The England and Wales Cricket Trust offers an interest-free loan scheme that provides finance to clubs for capital projects related to building work, equipment purchase and other cricket-specific needs.

All other terms and conditions relating to the scheme remain in place, but the move comes following the suspension two weeks ago of all recreational in England and Wales until further notice (PTG 3054-15123, 19 March 2020).  That move has left many amateur clubs – undergoing their final preparations ahead of the beginning of the season – facing difficulties and uncertainty (PTG 3057-15137, 21 March 2020).

An e-mail sent by the EWCB to leagues and clubs stated that potential ideas are being worked through regarding alternative arrangements for leagues, as well as at youth level, where the Dynamos Cricket initiative – a postcursor to the successful All Stars program – was due to be launched ahead of the summer (PTG 3041-15057, 2 March 2020).

The e-mail read: “Please be assured that we are continuing to work through the questions and what options there will be for running competitions at a later date.  The safety and wellbeing of all people involved in cricket is our absolute priority and so whilst we continue to work through solutions, All Stars and Dynamos Cricket remain suspended. We are currently working through what this means for those who have registered for both national participation programs and will be in touch within three weeks to update you”.

“We know that cricket can have a huge part to play in supporting physical and mental wellbeing of children around the country and we are working hard to find a solution which involves running courses later in the summer.  We are fully committed to doing the best for cricket and its communities throughout this unusual period. In the meantime, we are also exploring ways that we can bring cricket to homes across the country through indoor games, challenges and digital content and we look forward to sharing details with you soon”.

Overseas signings set for axe as counties make financial cuts.
Nick Hoult.

London Daily Telegraph.

Saturday, 28 March 2020.

PTG 3065-15178.

Financial cuts in county cricket will begin with the axing of overseas signings and talks have opened between the players’ union and the England and Wales Cricket Board (EWCB) about salary reductions as the game faces up to spiralling losses caused by the suspension of the season.  Postponing the Hundred is also being discussed at high levels within the EWCB as the board looks to prop up counties and plug the financial black hole the coronavirus threatens to leave behind.

Shifting the launch of the Hundred for 12 months would save the board around £UK40 million ($A80.8m) in marketing spend and it is understood there is room in the five-year broadcast contract with Sky and the BBC to provide content to make up for any lost cricket further down the line.  

It is understood representatives of the UK Professional Cricketers’ Association (PCA) and the EWCB met on Thursday to discuss potential pay cuts for players. Sources have indicated no agreements were made and further discussions will take place.  The board are next week expected to announce a series of emergency payments to the 18 counties to help with imminent cash flow problems. 

But many are already contemplating putting players on furlough so they can claim the 80 per cent salary repayments offered by the UK government bailout.  Several counties have already put their non-playing staff on furlough and once they know how much money they are set to receive from the EWCB they will be able to decide if they can keep paying their players their full salaries.

Businesses are allowed to claim 80 per cent of an employees' salaries up to £UK2,500 ($A5,050) per month. They can then decide whether to top up the remaining 20 per cent. A large amount of county players will be earning significantly more than £UK2,500 a month and some counties will find it hard to make up the difference. 

If it reaches the situation where players are asked to take pay cuts then it is inevitable the centrally contracted England cricketers will also be asked to take a reduction. It would be an awful image for the England team to be receiving full salaries when their county counterparts are on reduced wages.   The first cuts counties are expected to make is to overseas signings which will save most clubs between £UK100,000-£200,000 ($A201,985-403,970) per summer, money that can go back on to their payroll.

The majority of overseas signings do not view their county contract as their main source of income and there is obviously doubt over whether they will be able to travel to England anyway to take up contracts.  Daryl Mitchell, the PCA chairman, last week said that players will consider a pay cut if it is for the good of the game (PTG 3056-15232, 20 March 2020).  However, the PCA was also said to have indicated during the week that discussion of player cuts at the moment was premature (PTG 3061-15158, 25 March 2020).

With many counties labouring under heavy debts and others constantly fighting cash flow problems it is inevitable there will be cuts. One chief executive said cutting playing salaries is the option of last resort.

SACA belt tightening leads to 23 redundancies.
Daniel Brettig.
Cricinfo.
Saturday, 28 March 2020.
PTG 3065-15177.

The South Australian Cricket Association SACA) has made sixteen full-time members of staff and seven contractors redundant, thus becoming the first state cricket association in the country to reduce the size of its operation amidst the coronavirus pandemic.  Cricket Australia (CA), which under its financial model provides an annual grant to each of the state associations for the running of their businesses and the development of cricket in each state, has indicated its in a good financial situation and that its intent is to absorb the shock of the coronavirus pandemic into the business without resorting to staff cuts (PTG 3061-15159, 25 March 2020).

The SACA's cost-cutting is linked to the vast downturn in projected revenue for the Adelaide Oval after the 2020 Australian Rules Football season was suspended due to health risks, with the cricket association a joint partner in the management of the multi-purpose stadium with the South Australian National Football League (SANFL).  SACA and SANFL finances are further complicated by the need to help repay a $A42 million (£UK20.8m) state government-guaranteed loan to the Stadium Management Authority for the construction of a new hotel at Adelaide Oval, in time for the 2020 men's Twenty20 World Cup later this year.

Other measures being made included the reduction of salaries by 20 per cent among remaining staff across the board, including on the executive team led by chief executive Keith Bradshaw. The association has also frozen the search for a new coach for the men's state team, after Jamie Siddons departed his post by mutual agreement.  Two experienced coaches remain in the SACA system, with Jason Gillespie contracted as coach of the Adelaide Strikers Big Bash League side and the former Australia coach Tim Nielsen still on board as high performance manager.

"These decisions have not been made lightly - people are our number one priority”, said SACA chairman Andrew Sinclair in a message to members. "However, we need to act in the best interests of SACA as we face one of the toughest times in our 149-year history. We will continue to plan for next year's cricket season, with the hope that we can all return to normality as soon as possible.  It is now apparent that SACA's financial operating position has been, and will continue to be, severely affected as this situation continues. 

Other states have not yet announced similar cuts, and all have somewhat different financial arrangements either directly tied to memberships, as is the case with the SACA and the WACA, or different models in New South Wales and Victoria where the Sydney Cricket Ground Trust and the Melbourne Cricket Club, as owners of the Melbourne Cricket Ground, hold the memberships to watch matches at each state's principal venue.