Cricketers warned pay will drop

Cricketers are being warned to prepare for a drop in pay as the downside of the revenue share model they fought so hard for demonstrates its downside.

The players’ pay packets will drop alongside revenue. Picture: Brett Costello

Cricketers are being warned to prepare for a drop in pay as the downside of the revenue share model they fought so hard for during the players dispute demonstrates its downside.

While the football codes are facing a financial wipeout, Australian cricket looks like there will be little short-term impact on profits as the season is already over.

The loss of gate revenue and any demands for compensation from broadcasters over the cancellation of the limited-overs series against New Zealand will be significant but not crippling. There’s even an element of upside with the abandonment of the last round and final of the Sheffield Shield. The game had argued during negotiations that first class cricket cost it money and there will be a saving from not putting on those games. Sources suggested that Fox Cricket will save $70,000 a day not having to broadcast the final.

The Australian Cricketers Association sent an advisory to players on Wednesday warning its members they may face some cut in their pay but still confident that the revenue share model is good for the game and those who play it.

“The current revenue model is one that recognises the players are partners in cricket,” ACA boss Alistair Nicholson told The Australian. “The players have played a large and important role in the recent growth of the game and have benefited from that. And now, if required, they understand they may need to tighten their belts to help the game get through a difficult time. We’ll continue to chat with Cricket Australia so that any decisions made will be in the best interests of the players and the game.”

The Memorandum of Understanding was signed before the $1.1 billion broadcast deal and so pay had been set according to projections based on a lower amount. Revenue above the projection is collected in a fund called the adjustment ledger which is later distributed to players.

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The distribution ledger became part of an ugly tug of war between the game and male players when Cricket Australia tried to use those funds to support increased payments for women before they were included in the last MOU.

The ACA sent an email to its members this week explaining the position now the game is facing head winds.

“In 2017, you, players male and female, collectively fought for the partnership model that has the players sharing in the game’s revenues,” Nicholson said. “This includes a share of the games’ financial upside in good times, but also in sharing the downside when financial times are tough. This model means the players won’t be paid more than the game can afford. We are partners in the game and all in this together.

“Thankfully, due in part to the significant investment by players in the development of the game in recent years, the game has enjoyed significant above forecast revenues in the first part of the current MOU 2017-22.

“Because of this the game enters this period of uncertainty in a relatively sound financial position. Cricket is fortunate to be dealing with this crisis at the conclusion of our domestic season, and we hope some of the financial impact will be able to be absorbed over the mid to long term and some of it will be insured against by CA.

“However, we are also conscious that we are part of the sporting economy — and more broadly the general economy — that is undergoing significant disruption. It is quite possible that this may require player payments, benefits and programs to be adjusted downwards in the future. Whilst sobering, this is what the partnership model is all about.

“Cricket Australia’s most recent broadcast deal with Fox Sports and the Seven Network resulted in significantly above forecast revenues for Cricket Australia over the terms of the MOU, a share of which has been placed into an Adjustment Ledger. This Adjustment Ledger has been notionally allocated by the players to additional ACRA (Australian Cricketers’ Retirement Account), Grassroots Cricket and other purposes as approved by the ACA Board. In the events of a shortfall in cricket’s revenues caused by the most recent crisis, the Adjustment Ledger may be accessed to help smooth this shortfall. Once the Adjustment Ledger has been used in this way, the Player Payments Pool (PPP) may also be adjusted downwards. This would happen following discussions between CA and the ACA, on a pro-rata basis across various categories in the PPP including player payments, ACRA, the injury account, the Performance Pool, Marketing pool etc.”