CSA banks R199m profit

2014-09-13 16:51
Haroon Lorgat (Gallo Images)

Johannesburg - The management of Cricket South Africa was praised on Saturday for its effective running of the organisation through trying times as a profit of R199 million was announced at the annual general meeting at OR Tambo International Airport.

The audited financial statements showed revenue of R810 607 000 for the year ended April 30, 2014, with expenses of R634 092 000.

With investment income of R17 324 000 and a net foreign exchange gain of R5 571 000, CSA was able to present a total profit of R199 410 000 for the financial year. This is only R18 million less than the targeted profit despite the calamitous curtailing of the lucrative Indian tour to South Africa late last year.

"Instead of the R200 million loss predicted by some in the media because of the India tour being curtailed, we are less than R20 million short of our target," CSA president Chris Nenzani said at the AGM.

"If you consider the high level of dysfunctionality in governance and the inappropriate responses of the board back in 2010, then the management has been our saving grace. They have put a semblance of normality in place, they had to be creative and resilient and we have moved from crisis to normality."

Louis von Zeuner, an independent director and chairman of the audit and risk sub-committee, also praised CSA chief executive Haroon Lorgat and chief financial officer Naasei Appiah for their efforts.

"We really must applaud management for the way they have dealt with such curtailed income, stabilising cricket in this time of changing financial models.

"We have a balance on the board between business people and those with the cricket knowledge, so it's the best of both worlds. If you look at the economy, the exchange rate, the impacts of changes in the international body and sponsors, it's a totally different environment nowadays," Von Zeuner said.

Appiah pointed out that cricket's finances had to be planned over a four-year cycle, and the four-year cycle just ended had seen CSA budget for R500m a year of expenses, which would now increase to R650m a year for the next four-year cycle.

Lorgat said this success was due to CSA implementing more efficient financial systems.

"We had to generate new revenues, such as the Festival of Cricket, but this did not affect our existing cricket activities. It was untrue when reports said we had to cut programmes.

"What did happen was the re-engineering of our operating model. We had to understand exactly how everything worked, through a far more detailed process of measuring and managing...

"We're confident we can control the growth and sustenance of the game because we went into great detail to come up with the numbers. Funds are now allocated exactly according to activity, whereas in the past we used to just divide up the cake," Lorgat said.

He said the Future Tours Programme for the next eight years would see a 44 percent increase in international cricket hosted by South Africa, with an average of 46 days of Proteas action per year as compared to 32 in the previous FTP.

The money men were particularly looking forward to 2017/18 when four international teams, including India, are scheduled to tour South Africa, with 13 Tests set to be played.

"We're fortunate to have the world's best team, so we're in a good space to be able to work out a profitable FTP, plus South Africa is an attractive destination," Lorgat said.

Read more on:    csa  |  cricket

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