Cricket bosses buy time with CEO sacking
Cricket Australia’s hierarchy have bought themselves time with the removal of CEO Kevin Roberts but are pedalling fast to ensure they aren’t dragged down as well.
Cricket Australia’s chairman and board have bought themselves limited time with the removal of chief executive Kevin Roberts and both are pedalling fast to ensure the crisis that has rocked the local game does not drag them down with their CEO.
Nick Hockley, chief executive of the men’s and women’s T20 World Cups, has been appointed interim CEO as the game sets out on a search for its second boss in the space of two years.
Chairman Earl Eddings had Hockley lined up last week and was putting the last pieces in place for the move on Roberts when leaks broke his cover on the weekend. The Australian reported on Monday that Roberts, who had only been in the job 19 months, was under enormous pressure.
The planned redundancies will still take place at head office on Wednesday. Around 200 staff had been stood down on reduced hours since April. There are indications some jobs have been saved by the about-face but other senior members of management aligned with Roberts might find themselves out the door with the other employees.
“If I look back in hindsight that was three months ago (when the stand downs took place) when the whole world was turning around,” Eddings said about the staff cuts. “At the time it was necessary in that current climate to reduce costs quickly, we did that at the time and now once again as we started to emerge and different models coming through and we’ve had the world changing more positively, although tentatively, it was a chance for us to reshape that.”
The Australian Cricketers Association had a win on Tuesday with news that head office has walked back from moves to cut the domestic summer which will now proceed in its entirety. Players fought hard against cuts to the game, particularly to the Sheffield Shield competition.
The removal of Roberts gives the organisation a chance to reset its financial position, ease the level of cost cutting and to sell a more positive picture of the game.
Eddings was bullish about the prospect of rejecting any moves from broadcast partners to request a reduction in rights fees as they have done with the football codes.
“We’ve lost no content, we’ve got strong commercial partners, who we get on very well with. We’ll hold up our end of the bargain, I’m sure Foxtel and Seven will as well,” Eddings said.
The chairman said that if there were no crowds — something broadcasters claim devalues the product — it might increase ratings.
Eddings refused to reveal if Roberts would be paid out the remaining 18 months of his contract saying it was confidential.
While the chair denied that his chief executive was a “scapegoat” he had trouble articulating why he was removed, but the situation needed a circuit breaker and the organisation hopes this was it.
“I think Kevin and I and the board have worked out over the last three to four months that things do need to change,” the chairman said. “Kevin has tendered his resignation, it was agreed by us and we’re moving forward.
“Ultimately the board takes all responsibility, and me as chair, I’m ultimately responsible for the organisation, hence why I’ve made these changes today.”
Eddings said it was a time for “new leadership” and claimed Roberts had felt it was time to move on. Roberts made it clear in recent weeks he worked hand-in-hand with the board on projected loss of 50 per cent in revenue this financial year and Eddings accepted that directors and the executive had worked closely on the project with the former CEO.
The cuts to state grants, players pay and staff were all announced on the basis of the figure which was reached in April and states are now expecting a revised amount.
Since that time prospects have improved so much that the Australian summer looks as if it will proceed as planned with India touring and crowds expected at both the international and BBL games.
Eddings warned there were still financial difficulties ahead.
“We’re not out of the woods yet,” he said. “International borders are still closed and still will be for some time. Still think there will be significant impact on crowds this summer, although it’s good to see some of the other codes start to experiment bringing small crowds back in. “
Hockley’s appointment is clear indication there is little prospect of the T20 World Cup proceeding in October-November.