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CSA Presentation to the Parliamentary Portfolio Committee Tuesday, 19 May 2015, Cape Town

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CSA Presentation to the Parliamentary Portfolio Committee Tuesday, 19 May 2015, Cape Town 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
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