BBL loss: Negotiating tactic or mismanagement?

31 May 2017

I (346)

Simon Katich has called for an independent investigation into CA claims of a financial loss in the Big Bash, the most successful story in recent Australian sport.

Despite sell-out crowds and huge TV audiences, overnight reports suggest the Big Bash made a $33million loss in the first five years.

"This is either an MOU negotiating tactic or a serious case of mismanagement.” Katich said

"Either way, the public and the players need answers.

"The claims that CA has managed to lose money on the biggest success story in world cricket must be independently investigated.

"Record crowds, record ratings, record sponsorships and merchandising sales each and every year, yet CA are claiming a loss.

"It defies logic and good business sense.

"It also defies logic that you would claim a financial loss, yet not recommend a model that shares the risk.

"It may well be an ill-conceived negotiation tactic, which itself is silly given mediation is the way to go.”

Katich's questions come in the same week CA attempt to explain the chronic under investment in grassroots cricket of just 12% of revenue.

"The BBL and WBBL provide the best platform to promote cricket to kids and families given they are turning up to these events in their hundreds-of-thousands over the course of the season.

"The recurring question that keeps arising is, where does all the money go?

"Is it drained by too much bureaucracy, executive salaries, entitlements and bonuses.

"One thing is for sure, it's not drained by either the players or grassroots investments, which together account for less than 30 cents in the dollar.

"I have called for a cap on CA administrative costs before and this is more evidence of the need for that.

"And it is also now clear evidence of the need for an independent investigation," Katich said.