Instead of yielding financial benediction, Cricket South Africa will have to endure a big pecuniary loss from the inaugural domestic T20 league in the country, termed as the Global T20 League.
The doubted net losses could be as huge as $25 million. The costs of launching the initial tournament is indeed larger than what was expected. CSA authorities revealed at least three seasons could be necessary to turn the tournament into profitable one.
To much horror for cricket authorities in South Africa, the broadcast and sponsorship deals are also yet to be confirmed.
CSA Chief Executive Officer 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.”
“We have cut down, but it’s not to wane the quality of the tournament. We are making sure our members don’t get hurt the most. As CSA, we have decided to absorb some of the losses that our members would have incurred, but we’re doing so because when we look at our numbers, we’re pretty confident that we can help them regain them in the following year,” Moroe said.
“We as CSA and the team owners will still suffer losses. Hopefully, depending on how well we negotiate with all the broadcasters, the team owners will break even in year three. Our model is pretty watertight, it’s now just a matter of making sure that we deliver operationally,” he added. 1 of 1