Heads of Agreement reached in MOU negotiation

ACA_Agreement _Article

The Executive of the Australian Cricketers' Association (ACA) will recommend Australia's male and female cricketers accept a renewed Memorandum of Understanding (MOU) secured under an in-principle Heads of Agreement between CA and the ACA. 

Players will now consider the ACA's recommendation that this agreement with Cricket Australia be supported.

After a 10-month negotiation, the ACA and Cricket Australia (CA) have agreed to an MOU with:

  • A five-year term; 
  • One agreement for all male and female players for the first time in Australian cricket; 
  • A revenue sharing model, ensuring all players - male and female - are partners in the game of cricket; 
  • A gender equity-pay model;
  • The biggest pay rise in the history of women's sport in Australia; 
  • A revenue sharing model in which players share in up to 30% of agreed revenue, consisting of: 
    • 27.5% of forecast revenue streams (making up the Player Payment Pool (PPP) for the period)
    • A 2.5% performance pool;
    • This is estimated to be $500m (or 30% of a forecast $1.668 billion) 
  • For any revenue over-forecast, the maintenance of an 'adjustment ledger' where; 
    • All male and female and domestic and international players share in this revenue; 
    • An amount of approximately $25 million will flow directly to grassroots investment via the Grassroots Investment fund;
    • This grassroots contribution figure will be matched by the estimated $25m of CA's savings on their current administration expenditure over the next five years;
    • This fund will be administered by a committee involving equal participation by CA and ACA and align to the game development strategies for the next 5 years; 
  • The ACA will retain 'The Cricketers' Brand' for commercial activity;
  • Players will have a greater say on scheduling through a new Standing Scheduling Advisory group, a great innovation strongly endorsed by the players; 
  • Improving the player retirement fund (ACRA) via a CA/ACA Working Group, which will also include female players for the first time.

The parties have agreed that the 2012-2017 'adjustment ledger' will not be rolled over into the new deal but will rather be expended in accordance with its current design.

Furthermore, all uncontracted players will receive full 'Back pay' to July 1, 2017, once the full MOU is completed (expected early September). Any player therefore still requiring financial assistance can contact the ACA.

ACA President Greg Dyer said the ACA was pleased to recommend to the players that the deal struck with CA should be accepted.

"The ACA is delighted for the men and women who play the game now and in the future.

"And for the game of cricket which will continue to benefit from the partnership model which has served cricket so well.

"The new MOU is a great achievement for the players and the game.

"Like anything worthwhile it's been hard to achieve.

"But what has been agreed is ground breaking for Australian sport.

"One MOU for men and women, the maintenance of the partnership model, and record investments for grassroots cricket is what we wanted and it's what has been achieved.

"The men and women have been rewarded for sticking together and for having the courage of their convictions. They have made history and created a legacy for generations of players to come.

"In particular I want to acknowledge the sacrifice of the Australia A Team which demonstrated the depth of the resolve of the players to support each other.

"We also congratulate the players who have bravely made the case in the public domain. It will be important that they are respected for having the courage of their convictions.

"There is also a reality to confront. Yes, we've arrived at a great place but the game must never again take this same route.

"The players did not choose this route and did not enjoy being on it. In fact, the players resented it deeply. This was not a fight the players started. The players defended themselves as is fair and as is their right," President Dyer said.

ACA Chief Executive Alistair Nicholson said the sticking point had been the issue of revenue sharing.

"We fought hard for revenue share because we know it has worked well and will continue to do so.

"To have retained the revenue sharing model and increased the level we have and ensure that men, women, domestic and international players receive a fair share is great news for the players and for the game.

"It's right that all players, men and women will be partners in the game because that's a fair outcome. It ensures a game with all parties pulling in the same direction.

"Success in this negotiation for the ACA was achieving revenue sharing for all players, gender equity, fair remuneration increases, greater input on scheduling and more grassroots investment.

"We have achieved those things and on that basis we recommend to the players that the deal be accepted.

"I pay tribute to all of the players for their resolve. Enduring uncertainty and unemployment has been very difficult. They are terrific young men and women who have been rewarded for their determination.

"I especially congratulate Steve Smith, David Warner, Meg Lanning, Alex Blackwell and all ACA Delegates for their outstanding leadership. They led the players in this process and prevailed.

I applaud all 300 players for showing such resolve and unity. They have achieved an historic outcome for each other and for the game of cricket," Nicholson said

HOW THE ACA MEASURED SUCCESS? 

SUCCESS IS

STATUS

1.A partnership based on revenue sharing

ACHIEVED

2.Inclusive of all men and women players

ACHIEVED

3.Inclusive of all domestic and international players

ACHIEVED

4.A fair share of gross revenue

ACHIEVED

5.A gender equity pay model

ACHIEVED

6.Fair increases in remuneration for all players

ACHIEVED

7.Maintenance of the adjustment ledger

ACHIEVED

8.Non-discriminatory contracts

ACHIEVED

9.Back pay for players should the MOU Expire

ACHIEVED

10. No roll–over of the existing adjustment ledger

ACHIEVED

11. Higher investment into grassroots cricket

ACHIEVED

12. Focus on need for CA cost cutting

ACHIEVED

13. Greater input into cricket scheduling

ACHIEVED

14. Greater control/visibility over player IP

ACHIEVED

15. Greater collaboration on retirement income scheme design

ACHIEVED

16. Keeping the IPL Window open

ACHIEVED

17 Keep the ACA Strong

ACHIEVED

18. ACA to have even stronger and deeper ties with the players

ACHIEVED

 For further outline on the deal - click here.