Cricket Australia has secured a loan of USD 50 million, an upfront payment as part of a larger USD 200 million credit, which it has sought to cover the losses if India fails to tour the country towards the end of the year due to the novel coronavirus pandemic.
India is scheduled to visit Australia later this year for a four-match Test series. There are doubts over the series because of the coronavirus pandemic. As things stand, all the international series and major domestic events are currently suspended due to the pandemic.
While there is still a long time left before the Test series, the way things are unfolding at the moment, the signs are not at all encouraging. And if the series is canceled, it might cost Cricket Australia up to a shocking $300 million in lost TV revenue according to local reports.
The cricket board is under huge financial pressure due to global lockdown and has laid off 80 percent of its staff. Cricket Australia is eagerly anticipating the Test series against India as it could provide much-needed financial relief.
According to a report published in ‘The Sydney Morning Herald,’ stakeholders have been notified that the loan with the Commonwealth Bank is a “done deal” However, it raised fresh concerns about the governing body’s decision to stand down 80 percent of its staff.
CA stood down more than 200 staff on 20 percent pay until the end of June with chief executive Kevin Roberts fearing they might run out of money by August if the drastic cuts were not made. The decision, which had saved CA about USD 3 million, is in question now with the governing body securing USD 50 million loan.
The report even more mentioned that while Roberts, himself, is still earning 80 percent of his salary, he is set to propose to state associations a 25 percent reduction in grants from CA.