Cricket South Africa Expects Massive Loss From Inaugural T20 Global League
Cricket South Africa "will endure a big financial jolt" from its inaugural T20 Global League, according to the INDIAN EXPRESS. The expected net losses are "to the tune of" $25M -- an amount that accounts for "more than half its current cash reserves." According to '16-17 financial details submitted by CSA, the board reported a bank balance of $47.8M by the end of April. But the costs of running the tournament with reduced revenue and stadium upgrades of $25.5M spread over three years "would push the board back as far as the financials are concerned." The costs are "much higher" than what was initially expected. CSA figured it would take "at least three seasons before the T20 Global League turned profit," similar to the Big Bash League. The extent of the losses has "come as a surprise." Even the revenue from TV rights and sponsorship has been reduced from what CSA "once hoped." CSA CEO Thabang Moroe said, "The numbers have changed, not as drastically as has been reported. Initially, we were looking at a total net revenue of $32 million as far as broadcast and central sponsorship is concerned. At the moment it will be in its 20s." The broadcast deal was due to be completed on Thursday but is "still pending and is expected to fetch" CSA between $17M and $18M (INDIAN EXPRESS, 10/7).