CSA Presentation to the Parliamentary Portfolio Committee Tuesday, 19 May 2015, Cape Town
1 The CSA Delegation
Chris Nenzani – President
Dr Peter Cyster - Vice President
Haroon Lorgat – Chief Executive
Max Jordaan – Transformation Manager
2 The Brief
To report on:
1. Transformation
2. Governance and related issues
3. 2013/14 Annual Report (includes financial results)
4. Finance
5. Results and Performances
3 Introduction
• CSA is currently in excellent shape! – Governance, Finance, Development and progress with Transformation initiatives – Currently No. 1 in Test and No.4 in ODI cricket; Women No.2 in ICC ODI World Challenge and No. 3 at the last ICC World T20 tournament; and our U/19s are the current World Champions. (next event early 2016) – CSA has concluded its Future Tours Programme through to 2023, building certainty in scheduling – CSA recently launched the Africa Cup – T20 Competition for 13 Affiliates and 3 African Countries • Stakeholders openly expressing their confidence in CSA and sponsors are growing their involvement. CSA has renewed all existing properties and has also attracted new partners (Samsung, Audi, Sony Six) • Apart from the one mischievous CWC selection issue, media coverage has been grudgingly positive • Transformation remains paramount in the general business of cricket and we acknowledge the progress still required to improve representivity, esp. at National level • A new model for cricket in Schools, alongside our RPC & Hubs programme, is currently being developed in collaboration with SRSA & DBE with roll out planned for September 2015 • Proteas delivered their best ever performances at the 2015 Cricket World Cup, alongside a new and authentic #ProteaFire campaign. All the Protea players now appreciate their broader responsibilities in our country.
4 TRANSFORMATION
5 Transforming from bottom.... up
RPCs, Hubs, and - targets disadvantaged communities Schools teams - 8 players in squad of 15 University teams - 3 black players in playing XI Semi-professional - 6 black players Franchise - 6 black players National teams - 50% target, but merit selection prevails Specific focus on increasing black African players Note: we have significant concerns with future of Schools cricket
6 New initiative - Transforming Cricket in Schools
• SRSA • DBE & GDE • Provincial Enablers • Link with Teacher Centres – Identify Educational Educators as Facilities & & coaches Budgetary Institutional Support Support
Statistical & Programmes Mapping & Talent ID Support • CSA & GCB • Stats SA • Link Schools with • Mapping of Hubs, Clubs footprint • Provide Coach • Socio-economic Education mapping 1 7 Alongside our RPC & HUBS Model which has been shared with SRSA & DBE
school Community based programmes Area schools matches at HUB level School school Play more matches
School HUB school Encourage partnerships
school school School School sschoolo School o School school School
School school HUB School school school HUB
School school
School School School School
School School School RPCRPC school
School School
School
RPC to play in the Top schools league of the Affiliate at all levels HUBS feed into the RPC programme
8 Transformation and Development Progress
What’s changed to accelerate our progress?
Activity Based funding with incentives and sanctions now in place Refocused Regional Performance Centres (RPCs) & Hubs, e.g. Langa centre managed by Thami Tsolekile Regional academies –UFH, UJ/Unisa to be part of the RPC & Hubs programme Scholarship Programmes to aid development and transformation – Momentum M2E, Sunfoil Trust Aggressive Player Loan system to support transformation goals Varsity Cup (inaugural in Feb 2015) Franchise Professional Contracts 2013 2014
19% 21% 49% 49% 32% 30%
White Black Black African White Black Black African
9 Progress at Malekutu Rural Academy
• Funding partners in place • Memorandum of Agreement with Mpumalanga Department of Sport & Recreation in place – This deals with upgrade of existing disused facility for this Academy • Integrated in the Mpumalanga Talent Identification Programme • Graders moved in.
10 Programmes at UFH Rural Academy
1 11 Women’s Cricket – greater investment and focus
• Entire national squad now contracted on full time basis • Supported by CSA National Academy Programmes, inclusive of education and life skills • Fulltime coach, staff and team support now in place • More international matches • Feeder system developed from school level to emerging team
12 CSA High Performance Squad (12 players)
Black African Generic Black White Temba Bavuma Farhaan Behardien Simon Harmer Eddie Leie Beuren Hendricks Rilee Roussouw Mangaliso Mosehle Reeza Hendricks Stiaan van Zyl Mthokozisi Shezi Dane Piedt Khaya Zondo
Note: CSA has a Strategic Transformation Fund in place to support worthy transformation initiatives across the country
13 Impediments to Accelerated Transformation
• Unemployment rate
• High Poverty headcount
• Low levels of facilities and active sport in schools
• Amended National Norms and Standards for School Funding (ANNSSF) provides that 80:20 in Quintile 1 & 2 may apply funds on matters other than personnel costs
• High costs of maintenance of existing facilities
• High costs for transportation
14 GOVERNANCE & RELATED ISSUES
15 CSA Overview 2014 and Governance
. CSA has completed its governance overhaul and now enjoys a good governance culture, which is producing returns . Past AGM successfully held on 13 September 2014 – 2013/14 Integrated Annual Report presented, reflecting good governance in practice . The CSA governance model and Memorandum of Incorporation (MOI) has since been replicated in all the Affiliate & Associate Members (alignment process near completion) . Independent Directors have made a major and positive contribution to governance . Measurement and Accountability is part of the new governance culture . Board and committees undertake annual self assessments . A restored reputation and image, and renewed public confidence in administration
16 CSA Overview 2014 and Governance (cont.)
. Financial Sustainability has been a key focus in the past 12 months. The economics of cricket continues to be re-engineered . A new Operating Model (based on Activity Based Funding) has been implemented . Revamped plans for Academies (Regional Performance Centres and Hubs) have been rolled out . Superb results and performances on the field of play . The Transformation Indaba resolutions (Sept 2013) remains work-in-progress with implementation tracked and regularly reported on. Key focus areas, include: o Re-engineering the economics of cricket through the new Operating model o Align Member governance and strategies with CSA o Geo-political alignment at Member level o Grassroots cricket development o Greater Africanisation of cricket o Raising the profile of women’s cricket o Celebrating and recording our history
17 Geopolitical Boundaries
• This issue is progressing and CSA seems ahead of SASCOC and other Federations. • CSA Board has appointed a Task Team (12 September 2014) and the Terms of Reference to proceed with the geopolitical demarcation was approved by the CSA Board. • SASCOC updated on 22 April 2015 • CSA would welcome assistance from SASCOC with research and best practice model as promised (Note: SASCOC also indicated funding the alignment process to assist with the creation of new structures)
18 Strategic Challenges ...some examples Challenges (not exhaustive) Mitigation steps (not exhaustive)
• Schools cricket. (Currently in discussion • Seek to develop strategic relationships to with SRSA & DBE) address cricket in schools • SABC, as the public broadcaster, has not • SABC has signed a 3-year deal and we need fully supported cricket in past few years to build on this newf relationship. • Financial sustainability of Provincial • New Operating model and CSA requirement Affiliates & Franchises for all Affiliates to breakeven • Mooted regulatory changes would • Monitor and make appropriate submissions impact sponsorships i.e. proposed bans to relevant authorities on Fast Food and alcohol advertising
See CSA Corporate Scorecard for full list of strategic challenges and mitigating steps
19 Strategic Challenges (cont.) Challenges (not exhaustive) Mitigation steps (not exhaustive)
• Maintaining local club cricket facilities. • Engage with local govt. and other relevant Little or no municipal support role players • Lack of financial support from central • Engage with Sports Ministry and other and local governments for development relevant departments. and transformation imperatives • Sustaining international class stadiums. • Revisiting the stadia model and already Implementing the new Safety Act will be agreed to implement a grading system that costly will downsize some stadia
See CSA Corporate Scorecard for full list of strategic challenges and mitigating steps
20 FINANCE MATTERS
21 2013/14 Financial Results
Excellent financial results, notwithstanding the curtailed tour by India
Audited results 2013/2014 2012/2013 Change
Rm Rm Rm **Note: Impressive Revenue 810 607 520 985 298 622 results will Expenses -634 092 -700 495 66 403 be reported in respect of Net Profit (loss) 199 410 -133 275 332 685 2014/15
Cash 383 721 298 671 85 050
Retained earnings 599 421 400 011 199 410
CSA operates in 4-year cycles and needs to retain large reserves and cash for the lean years experienced within each cycle
22 4-Year Aggregate Financial view
Forecast Actual 2015/2018 2011/2014 Rm Rm Revenue 2 817 2 506 Expenses (2 652) (2 181) Aggregate net surplus 165 325
Reserves 764 599
Depending on the tour schedules and ICC distributions, some years in the cycle would experience losses while other years would make a surplus
23 ICC -
The Proposed ICC Distribution Model for 2015 -2023
24 2014 Expense breakdown
Coach hire 3% Central costs National Teams 9% 9% Amateur cricket 25%
Professional cricket 54%
25 Cricket Development Funding 2014/15
Affiliate Member Funding (Direct grants) 2014/15 = R 87m (+20%) 2013/14 = R 72m
Administration costs 2% KFC Mini cricket 6% 5% Youth cricket 8% Development Women’s cricket 4% 5% Cricket centres of Excellence 37% Presidential Plan salaries Hubs 15%
Club cricket 1% 2% 15%
Umpires Scorers Corrective measures
26 2014/15 CSA Indirect Funding – Talent Development
Programmes/Activities Cost Youth & Other Weeks R22.0 m Fort Hare Project R 2.8 m Women’s Cricket R 7.0 m Talent Acceleration Programme & SFS R 7.7 m Coach Education R 1.8 m Cricket Operations for Youth & Other weeks R 6.0 m TOTAL R47.3 Million
Direct funding 87.0m Indirect funding 47.3m Total development funding 134.3m per annum 27 Current Sponsors
With high market confidence in CSA, we are enjoying excellent sponsor relations and will continue to explore new potential partners
28 RESULTS & PERFORMANCE
29 RESULTS over the past 12 months
Women P W L D NR % win ODI 11 7 2 0 2 64% T20 22 13 9 0 0 59%
P W L D NR % win Men Test 10 5 3 2 0 50% ODI 25 18 5 0 2 72% T20 11 6 5 0 0 55%
Baby Proteas won the ICC World Cup in Feb 2014 for the first time ever and are thus the current U/19 World Champions
30 Performance as at 10 April 2015
• State of the art Indoor Facility (R30m capex project funded by CSA) launched on 13 March’14 • Regular reciprocal international tours arranged for Women, SA Emerging and SA ‘A’ teams • Women National Team ODI – 2nd rd – Top 20 Player Rankings: T20 – 3 • ODI Batting: Mignon du Preez (15), Dane van Niekerk (20) • ODI Bowling: Shabnim Ismail (8), Dane van Niekerk (9) Marizanne Kapp (16) • T20 Batting: Mignon du Preez (11), Dane van Niekekerk (19), Lizelle Lee (20) • T20 Bowling: Shabnim Ismail (9), Dane van Niekerk (12) • Proteas Test - 1st th – Top 10 Player Rankings: ODI - 4 T20 – 7th • Test Bowlers: Dale Steyn (1) , Vernon Philander (7) • Test Batsmen: AB de Villiers (2), Hashim Amla (3) • ODI Bowlers: Imran Tahir (2), Dale Steyn (3), Morne Morkel (10) • ODI Batsmen: AB de Villiers (1), Hashim Amla (3) • T20 Batsmen: Faf du Plessis (4) • T20 Bowlers: Imran Tahir (6)
31 APPENDICES
32 UNIVERSITY OF FORT HARE (Current)
Surname Name Student No. Degree Cell No 1. Payi Phumelelo New Student BA Education 2. Draai Bongolethu New Student BA Communication 3. Langa Babalo New Student 4. Dithole Tsepang 201213929 B Comm Eco & Bus 0748332717 5. Modiba Matome 201213927 B Comm Eco & Bus 0785498420 6. Kilani Jongile MSC College HR 0849179112 7. Bosch Clayton MSC College HR 0711442664 8. Calana Mkhululi MSC College HR 072 647 7000 9. Mbulelo Budaza MSC College Office Admin. 0733197628 10. Mnyaka Thandolwethu MSC College IT 079666695 11. Mungro Kerwin MSC College HR 0711442664 12. Loyiso Mdashe MSC College HR 0737136326 13. Thapelo Letsholo MSC College Public Relations 0844117271 14. Enkosi Nonyukela MSC College IT 0827114730 15. Kirchoff Maryka UFH B Ed 0765810419 16. Khaka Ayabonga UFH HMS 0715779757 17. Mnyiki Akhona UFH B Ed 0790211315 18.
33 UNIVERSITY OF FORT HARE (Alumni)
Student Cricket career Academic career Vuyisa Makaphela Warriors 3 yr Diploma MSC Jerry Nqolo Border Final yr student FH Luthando Mnyanada SWD 3 yr Diploma MSC Gionne Koopman Border FH Graduate Cebo Tsiki Boland Final yr student FH Lonwabo Rodolo SWD Cape College Ayavuyo Myoli Titans Final yr student FH Somila Seybokwe Border Final yr student FH Thandolwethu Mnyaka Warriors 3rd yr MSC Siphamandla Dapo Eastern Cricket 3 yr Diploma MSC Mbulelo Budaza Border 2nd yr MSC Tsepang Dithole KZN Inland Final Yr BCom UFH Mkululi Calana Border Squad Final yr Dip HR MSC Clayton Bosch Border Squad Final yr Dip HR MSC Nandile Tyali CSA HMS Hons. UFH Shannon Musto Border Cricket HMS UFH 34 Recognising our History – Kimberley, Friday 10th October 2014
CSA CE Haroon Lorgat with former NSC General Secretary Krish Naidoo & Thomas Mongwe who led the protest march of 26 January 1990 against the Rebel English Tour led by Mike Gatting
35 Other issues 1. Blind Cricket World Cup The Way Forward • Negative publicity • Clarify relationship, status • Reason of CSA position of membership and • Leadership obligations of each party • Funding commitment • Bottom up representation • Global invitation
2. CWC selection issue The Way Forward • Mischief media reports • Educate and manage better caused regrettable harm
36 Questions & Thank You
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