Cricket war breaks out on three fronts

Cricket is now officially fighting a war on three fronts after a pay offer to Australian players could end up in court.

Pat Cummins has retained his position as Cricket Australia’s highest-paid player Picture: AFP

Cricket is now officially fighting a war on three fronts after delivering a pay offer to Australian players on Wednesday that has players questioning Cricket Australia’s good faith and has triggered a dispute that could end in court.

CA is already out of favour with staff who have been stood down and state bodies facing big funding cuts. Now players are outraged by suggestions of a massive drop in revenue , which will reduce their share of the pie.

The pay model for cricketers is complex, but is based on a pool that draws 27.5 per cent of the game’s revenue.

The Australian Cricketers Association held a board meeting at lunch time on Thursday to discus the projections for 2020-21 which see Australian Cricket Revenue — money from broadcasters, gate -takings and the like — estimated to drop by 48 per cent and the pain to continue into the following financial year where it is estimated to fall by another 20 per cent.

The ACA claims in an email to members seen by The Australian that it has no confidence in the projections, saying “they do not appear to be reasonable or consistent with an obligation of good faith” and indicated it would seek mediation. The next step would be legal action.

“From what the ACA has been able to determine so far, cricket is yet to suffer a significant adverse revenue event and the outlook for the game remains positive,” chief executive Alistair Nicholson said.

“The reforecast appears inconsistent with CA’s own public assurances that a $300m Indian tour is a 9 out of 10.”

The email claimed communications displayed a “distinct lack of detail supporting the reforecast”.

Those privy to the discussions said the players body was baffled how cricket could be working off a model that sees money almost halved when there is confidence the Indian series will go ahead this summer and no indication the broadcasters will not meet their contractual obligations.

“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 told members.

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

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While the ACA claim that it can go to mediation and eventually court, CA deny this is available to the players body.

The Australian players received their rankings on Wednesday. The Australian understands Pat Cummins is again the highest ranked and paid player ahead of Steve Smith, David Warner, Mitchell Starc, Tim Paine, Aaron Finch, Nathan Lyon, Josh Hazlewood and Marnus Labuschagne.

Labuschagne, the highest run scorer in world cricket and a two-format player, appears to be hard done-by, but he has no recourse and at least has done better this year than last when he was not considered worthy of a contract.

The complicated nature of cricket accounting would, according to Roberts, see players’ pay unaffected but would draw down on money already owed to the playing group.

That money, ACA sources say, goes to funding grassroots cricket, women’s development coaches, two rounds of the women’s National Cricket League and things like the players’ retirement and hardship funds.

Roberts has listed a number of impacts on the business, but not all of them directly affect Australian Cricket Revenue and none add up to explain a projected drop in revenue of the magnitude contained in the document sent to players on Wednesday.

Players’ share of revenue was initially forecast to be more than $400m this year, but has been almost cut in half in the reforecast, which appears based on CA’s earlier assumption it faces a 50 per cent drop in revenue in 2020-21.

That model has seen the organisation seek 25 per cent cuts to state grants and stand down 80 per cent of its staff until the end of the month. Chief executive Kevin Roberts has indicated there will be redundancies in order to cut 25 per cent costs from the business.

Roberts is facing push back on all fronts. NSW and Queensland refuse to accept the cuts to grants saying the modelling is too bleak, especially now the Indian tour and the summer appear more likely to go ahead. Staff were shocked to be stood down in April when they believed cricket was in a good place.

The chief executive released a statement that day explaining his actions.

“Given the economic uncertainty caused by the coronavirus pandemic, many organisations are working with scenario plans rather than developing precise financial projections that may need to be updated various times in ever-changing circumstances,” Roberts said.