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ECB fear coronavirus pandemic could lead to £200m losses as staff cut-backs are confirmed
The governing body will reduce its workforce budget by 20 per cent and change a number of positions to flexible working roles in order to deliver the Inspiring Generations strategy
The England and Wales Cricket Board fear the coronavirus pandemic could leave a £200m black hole in the sport and have announced a series of measures to help adapt to the crisis.
Chief-executive Tom Harrison, who has led the cost-cutting charge, took a 25 per cent pay cut, and some staff were placed on furlough as the scale of the pandemic hit home.
But the ECB have confirmed a fresh wave of measures. They will reduce their workforce budget by 20 per cent, with 62 staff being removed from their structure. Additionally, some current positions will be changed to flexible working roles.
Such measures are to ensure the ECB can survive the pandemic and deliver on their Inspiring Generations Strategy.
"I am very proud of the work that has been done by my colleagues across the business and the sacrifices made at a time when we asked them to work harder than ever before while managing their own personal experiences of COVID," said Harrison
"It is now an irrefutable fact, however, that the impact of this pandemic is significant and will be long-lasting. There is also deep uncertainty about the future, and it is vital we take more steps now to ensure the future financial sustainability of cricket in England and Wales.
"The entire cricket network has pulled together to get us through this challenge so far and overcoming it will mean continuing to work in partnership and continuing to make tough decisions as we have done this year. We must reduce the cost base across the game - and that requires the ECB to lead the way by reducing its own cost base."
Harrison had previously indicated that the coronavirus outbreak could cost the game £100m, but that figure is now expected to double.
Though the ECB have successfully staged a full international summer for England's men, a shortened red-ball season, a reduced T20 Blast, and the Rachael Heyhoe Flint Trophy, all competitions have taken place without supporters.
While the hope is that crowds could return to major events from October 1, there are fears spectators will still be locked out of matches come next summer.
A continuation of that will have a major impact on the first-class counties and the ECB, for whom matchday income is a major part of the balance sheet.
The ECB have offered financial support to the first-class and recreational game, with a total of £96.7m helping to prop up the sport.
Players have also helped the game survive during the most challenging period in its history, with all-but two counties furloughing their squads. Wages totalling £15m have been either delayed or forgone entirely, with contracts for The Hundred not coming in until next year.
Despite the range of measures announced by the ECB, others could follow. Chairman Ian Watmore earlier this month refused to rule out a move from the ECB's Lord's base or changes to the Loughborough academy.
Speaking to the media earlier this month, Watmore added: "It is inevitable that we are going to have to reduce expenditure on the ECB itself going forward. I am always going to ask people to align with the Inspiring Generations Strategy. What's good for that is good to spend money on.
"A lot of companies are looking at their real estate and we will be doing the same. We need to look at how best we have a flexible operating model for the ECB going forward. It might mean more remote working, it might mean working around the country.
"I don't regard anything as ring-fenced. The direction of travel is set. We need to plan next season very carefully. Clearly we're going to have to look at what is feasible and affordable and what will make maximum impact in the context of the summer of cricket." The Cricketer
The hard reality of the current situation is sinking in all right.
ReplyDeleteBetter to dispose of unnecessary staff now to cut the cost base and then re hire again when things improve , which they will . Some sad and hard decisions will shortly be taken in the County Committee rooms all over the Country .
Its very sad to think that bumper crowds at matches will not be allowed NEXT SEASON.
If Notts for example were only allowed 10% of ground capacity through the turnstiles - circa 1500- then most games would be finacially unviable.
Without an effective vaccine all the balls for most sports are up in the air. The days of the million pound a year cricketer and ten million pound footballer are perhaps going to be put on hold for a while. The money to pay them inflated salaries will simply not be there
And in the wider picture there will be very many other casualties outside of Sport. The foolishness of the few in not abiding by the restrictions to limit the spread of Covid-19 is a major factor and I think that the Government's handling of the whole situation has been quite pathetic.
DeleteThe original Lockdown was too late and the restrictions were eased too quickly - so we are now looking at a second peak of infections with more infections and, sadly, deaths being reported on a daily basis.
You are absolutely correct 'Cruet' that unless and until an effective vaccine is found there is little room for optimism.
In Nottm years ago in the Market Square was a small old mad who had a sandwich board draped over his shoulders . Someone apparently with very deep ( fanatical ?) religious beliefs.The message was a simple one
ReplyDelete” THE END
OF THE WORKD IS NIGH!”
It should these virus dominated days read-
” ITS THE END OF THE WORLD AS WE KNOW it!”
Things that we did that were once quite pleasurable - no longer are .
Typo error - sorry
ReplyDeleteShould read " old man "
Yes, his words horribly near the reality now, although we still have hope
ReplyDeleteOn ECB, a lot of money was spent by them prior to the Pandemic
This included preparation for the Hundred and millions to stop some grounds from bidding for Test matches
This left ECB reserves greatly reduced before we were hit by the virus
They did not know the future, who did ? and were banking on big income from Sky
Some money came from them to the game due to the matches that have fortunately gone ahead, but not the big funds expected
ECB paid the counties half the windfall expected, out of those very same reserves.
So, although the Hundred may rescue the financial situation from next year, the current parlous state of ECB finances is in part due to ECB decisions
It probably hasn’t even started yet inside and outside of the cricket world, sadly .
ReplyDeleteFrom a sports point of view I can’t see how the postponed olympics and euro 2020 can take place. I may be wrong, I hope I am.
If things stay roughly as they are now then will the ECB really plough on with the 100 Ball Competition?
ReplyDeleteIt will need big crowds etc to generate the necessary excitement needed to sell it to the all important younger generation and " new" audience.
As things stand it puts the ECB in an almost impossible position.
No one knows what the coronavirus situation will be in six or twelve months time. This makes forward financial projections very limited
The ECB and the Counties will need a good sound
Plan A , with Plans B and C in reserve just in case..
We could do with a good , reliable crystal ball.