'Lack of confidence': CA, players set for another pay war

Cricket Australia and its players are on a war footing, with the game in for another bitter fight over pay after the players' union angrily rejected the governing body's grim financial forecast.

In a dramatic escalation in tension between the two parties, players are furious, expressing a "lack of confidence" in the numbers coming from head office, and have vowed to contest the figures via mediation, which they believe is available to them according to the terms of the last pay agreement.

Cricket Australia CEO Kevin Roberts has forecast a grim financial future for the organisation.Credit: Getty Images

But in a sign of the chasm between the two, there is a dispute over how to resolve the problem with CA arguing there is no such mechanism while players say the game is at risk of further damage if the process is not followed.

A protracted feud with its stars over money is the last thing the game needs having worked so hard to restore players' reputation after the ball tampering scandal.

Players believe they stand to take an $86 million hit due to the pessimistic projections coming from Jolimont, which are down by 48 per cent on the draft forecast of $461 million made before the coronavirus pandemic and sent to the union in April.

It is close to a worst-case scenario despite optimism the recently announced international schedule will go ahead.

That figure has now shrunk by nearly half, to $239.7 million, which is down 41 per cent of the $407 million reforecast after the $1.2 billion TV deal in 2018. It is also 26 per cent lower than the initial calculation at the start of the current pay agreement.

The Australian Cricketers' Association is stunned such a figure could be reached despite CA chief executive Kevin Roberts declaring he was 90 per cent confident the Test and one-day international series against India would go ahead. The series is worth about $300 million to the game.

There is also a cut of about 20 per cent for the 2021/22 season, from $484 million to $385.8 million, when Australia is due to host the Ashes and possibly the men's Twenty20 World Cup if this year's event is postponed 12 months.

The ACA accepts players' retainers, match fees and bonuses will not be affected but believes the downward forecast will impact its ability to fund grassroots cricket, investment into the women's game and contributions to players' retirement funds.

Player pay is tied to the revenue the sport can generate but there are extreme doubts from stakeholders over CA's claims of a financial crisis due to the pandemic hitting at the tailend of the international season.

CA, however, say they are not immune to the global economic downturn, even if India was to tour, as appears likely.

There is disbelief among players at what they believe to be scant detail provided in the "short email and letter" sent by CA, with concerns raised over how biosecurity costs, the absence of crowds and likely postponement of the T20 World Cup will impact revenue.

Sources have indicated the numbers are almost identical to the post-pandemic forecast in April, which prompted an agreed one-month extension. There was a second extension last Friday.

In an email sent to players and seen by The Age and Herald, the ACA said it had a "lack of confidence" in CA's forecast as "they do not appear to be reasonable or consistent with an obligation of good faith, as required". ACA chief Alistair Nicholson said the issue was now headed for mediation.

"The ACA must now commence a more formal process of due diligence via good faith negotiation dispute resolution mechanisms contained in the MOU between the ACA and CA," Nicholson wrote.

"The process is designed to shine a light on CA’s reforecasts and forecasting process so that a clearer and more reasonable formulation of them can be established.

"To not follow this process would be to risk further damage to cricket, the game we all love, and its otherwise bright future."

CA's outlook is consistent with the dire situation it has presented to the states - two of whom, NSW and Queensland, have not agreed to a 25 per cent cut in grants. It also formed their rationale behind standing down some 200 staff on 20 per cent pay in April, with redundancies looming in the next fortnight.

CA had risked further upsetting the states if their forecast was too optimistic as many have already made significant job cuts, and have instead put offside the players, who, unlike the state associations, have no formal means to hold the board accountable.