CSA Report to Parliamentary Portfolio Committee on Sport and Recreation
Cape Town 11 February 2014 The CSA Delegation
Chris Nenzani – President
Peter Cyster – Vice President
Haroon Lorgat – Chief Executive
2 The Brief
To report on:
1. Annual Report 2012/2013 (includes financial results)
2. CSA Strategic Plan (and our challenges)
3. Progress in Terms of Development Programmes
4. Other
– New respect for good governance
– The International Cricket landscape (including current ICC restructure proposal and the CSA/BCCI relationship)
3 1. Annual Report
Executive Summary: . New form Integrated report 2012/13 produced for the first time – impressive, comprehensive and transparent . Successful AGM held on 12 October 2013 following a few years of reputational damage . CSA key focus areas . Grassroots cricket development . Sustainable cricket funding model . Align governance and strategies with Members . Greater Africanisation of cricket . Raising the profile of women’s cricket . Achieve geo-political alignment at stakeholder level 4 The CSA Board
• New Board elected on 2 February 2012 as part of new governance structure following recommendations in the Nicholson Report • Board comprises 12 Directors - 7 Presidents elected from Members Forum and 5 Independent Directors. The Board does not have any Executive Directors • Board reports to Members Forum, which is the highest authority made up of all the Affiliates
C Nenzani P Cyster F Jaffer A O’Connor R Richards B Williams G Sauls
Independent directors (5)
5 N Arendse M I Khan D Mokhobo V Pikoli L van Zeuner Revenue streams
Major Income Streams
• International Broadcast Rights – fluctuates/cyclical based on fixtures (Future Tours Programme or FTP)
• Domestic sponsorships (SAB, Momentum, Sunfoil, Blue label, RAM couriers)
• Revenue from Champions League T20
• ICC distributions – fluctuates as it is ICC Event driven
• Other: ticket sales, financial income (interest, forex gains)
6 2012/13 Expenditure
Central Head Office Cost CLT20 & Other Services 9% 18%
[CATEGORY NAME] [PERCENTAGE]
Amateur & Cricket [CATEGORY NAME] Development [PERCENTAGE] 23%
Professional Cricket 28% Financial Results 2012/13
Audited Audited 2012/2013 2011/2012 Change Rm Rm Rm Revenue 521 430 91 Expenses (700) (518) (182) Financial income 46 41 5 Net loss (133) (47) (86)
Cash 299 475 (176) Retained earnings 400 533 (133)
8 Current 4-Year cycle (2011-2014)
Forecast 2011-2014 Rm Revenue 2 341 Expenses (2 349) Financial income 294 4-year net surplus 286
9 Key points on finances
4-year business/budget cycle, of which two are profit making years – mainly due to the ICC CWC and lucrative India or England inbound tours – and two loss making years
Commercial partners are presently confident with CSA and growing their involvement in cricket
CSA currently reviewing the sustainable economics of the cricket setup in South Africa – serious challenge needing re- engineering as individual Affiliates are loss making
10 2. Strategy STRATEGY
Vision
• A truly national sport of winners
Mission / Strategies • Promoting and protecting the game and its unique spirit in the context of a democratic South Africa • Base our activities on fairness, which includes inclusivity and non-discrimination • Accepting South Africa's diversity as a strength • Delivering outstanding, memorable events • Providing excellent service to Affiliates, Associates and other Stakeholders • Optimising commercial rights and properties on behalf of our Members • Implementing good governance based on King 3, and matching diligence, honesty and transparency in all our activities • Actively marketing cricket from Mini Cricket to the Proteas
Objectives
• Transformation • Operational Excellence • Commercial / Marketing • Legal and Governance • Cricket Development (Amateur & National Teams) 12 • Communication STRATEGIC CHALLENGES
Challenges (not exhaustive) Mitigation steps (not exhaustive) • Improve governance at Affiliate level • Align Members MOI with that of CSA • Representation, especially at senior and • Incentive based targets and reward for professional level quality based opportunities for BA players • Lack of opportunities for disability cricket • Formation of a Cricket Disability Forum • Successful National Women’s team • Full time national player contracts (6) and a coach (Hilton Mooreng) + more game time • Poor awareness of the details of the • Development of inter-disciplinary and trans- cricket development programmes institutional projects with Gauteng Cricket, UJ, Unisa & Mindset Networks • No engagement with Dept. of Education • Seek to develop strategic relationship • Need to record history and acknowledge • Activate projects to deliver outcomes all the past SA players, black and white
Strategic application of CSA Board approved annual R10m transformation fund 13 Strategic / Business challenges
Challenges (not exhaustive) Mitigation (not exhaustive)
• Fluctuating revenues dependent on • Diversify revenue. Source from local inbound tours increases financial risk corporates and government • Lack of demand for live match content • Engage with SABC to encourage live from SABC broadcaster broadcast to benefit more people • Financial sustainability of Affiliates & • Tackle the entire economics & structure Franchises questionable of cricket (Funding model review) • Inadequate reporting from Affiliates on • Greater involvement of CSA internal development spend audit function • Possible regulatory changes would • Monitor and make appropriate impact revenue i.e. subscription TV submissions to relevant authorities and alcohol advertising • Declining stadium attendances • Task team appointed to review • Inadequate staff skills and support • Review competencies and appraise performance more decisively.
14 Cricket Development Pipeline
SA “A”
Performance, Quality Opportunities & Franchise cricket Developing talent National Academy
Semi Professional Regional Academies/Fort Hare Project/Tertiary/Colts Quality opportunity, SA U/19 Developing & retaining talent Talent acceleration Programme
Schools cricket Mentoring driven Purpose Support Services Support Programmes & KFC Mini Cricket 15 Cricket Development Funding
Regional Programmes 1 284 467 Women's Cricket 1 669 349 Central Place Cricket Centers 6 422 337 Payroll & related costs 17 881 467 Administration 2 140 779 Club Cricket 7 706 805 Schools Cricket 3 854 458 Total R 40 959 662
CRICKET DEVELOPMENT FUNDING Regional Schools Cricket Programmes Women's Cricket Central Place Cricket Centers Club Cricket
Administration
Payroll & related costs Progress in Terms of Development Programmes
While we have a sound development programme in place, we are not satisfied with the rate of retention and upward progress of black African players right through to international level We must access talent within the greater population to ensure we are to be “A truly national sport of winners” Research studies have made us aware of some of the key challenges, for example 65% indicate social challenges faced by BA cricketers hinder progress and 83% commented on opportunities for BA cricketers We have started to address these issues – formed the Sunfoil Education Trust (circa R1.5m current availability and +-R700k to be added annually) Archbishop Ndungane and Pinky Moholi are CSA’s independent Trustees; and Monitor participation by measuring the “quality of opportunities” provided to BA players
17
Schools & Youth
Primary Schools
• Participation figures 1 591 schools, 290 leagues
• Spend R3m
• Cricket Weeks U13 Senior Schools
Senior Schools
• Participation figures 1 044 schools, 170 leagues
• Spend R3,9m
• Cricket Weeks U15, U17, U19 (boys & girls)
• Colts Week process to deliver SA U/19
18 National Cricket Weeks’ Representation
Schools: Age Group Opportunities
103 99 95 96 Growing participation and representivity
52 49 45 43 40 42 43 36 38 [VALUE] 25 [VALUE] [VALUE] [VALUE] [VALUE] 15 Selectors
CCKM U19 CUBS 19 U17 U15 U13 African Coloured Indian White
Universities’ Weeks 24% 1 2 51% 3 130 20% 4 112
5%
39 [VALUE] [VALUE] 27 [VALUE] [VALUE]
BLACK AFRICAN COLOURED INDIAN WHITE USSA A USSA B Senior Cricket
• Clubs – 886 (R1,3m) • Tertiary – 26 Institutions • University Sports South Africa USSA ‘A’ Week USSA ‘B’ Week
• Rural – 16 Regions • Women –16 Affiliates/Associates – Super 4 – Training Squad • Disability Cricket – Blind, Deaf, Intellectually Impaired
20 SA U/19 World Cup in UAE
ICC Cricket World Cup – Feb & Mar 2014 (takes place every 2 years)
• SA U/19 Fixtures
• Warm up matches: • Past Performances: – 10 Feb: vs Namibia, Dubai – 2012 – 3rd place – 12 Feb: vs India, Dubai – 2010 – 5th place • Group matches; – 14 Feb: vs West Indies Dubai – 2008 – Runner up v India – 16 Feb: vs Canada Abu Dhabi – 2006 – Plate Semi-final – 18 Feb: vs Zimbabwe Abu Dhabi – 2004 – Super League Group Stage
– 2002 – Runner up v Australia • Quarter Finals: 22/23 Feb • Semi Finals: 24/25 Feb – 1998 – Super League Group Stage • Final: 1 March Dubai
21 SA U/19 World Cup Team
SA U/19 CWC SQUAD 2014
Management team Manager: Morgan Pillay (Indian) White Black 6 5 Coach: Ray Jennings (White) Assistant Coach: Mandla Mashimbyi (Black African) Analyst: Kyle Southgate (Coloured) 4 Physiotherapist: Megan Dutton (White)
Black African
SA U/19 Squad of 14 to UAE Wave of the future
Aiden Markram (c) Notherns Sibonelo Makhanya Border Bradley Bopp EP Greg Oldfield KZN Corbin Bosch Northerns Andile Phehlukwayo KZN Driaan Bruwer Northerns Kagiso Rabada Gauteng Kirwin Christoffels EP Ngazibini Sigwili Border Justin Dill Boland Jason Smith WP Clyde Fortuin WP Yasseen Valli Gauteng 22 Making Opportunities Real
WOMEN SQUAD MAKE UP
7 6 Black
White 1
Black WOMEN MATCHES PLAYED African
White Black 26 25
4
Black African Coach Education & Training
• The following materials have been developed: – Coaching Curricula in DVD format Level 0 – Level 2 and distributed to all Members – CSA administered advanced courses for Levels 3 & 4 • Long Term Participant Development Programme From Grassroots to Proteas (SASCOC, SRSA & Lotto) • 10’s of Performance and Training • Quarterly publications on cricket coaching matters • The number of qualified coaches countrywide: • Level I since 2005 up to date NO. COURSES NO. CANDIDATES MALES FEMALES FAILED PASSED TOTAL 379 6,028 5,319 709 1,030 4,998 4,998 • Level II since 2005 up to date NO. COURSES NO. CANDIDATES MALES FEMALES FAILED PASSED TOTAL 123 1,618 1,529 89 279 1,339 1,618
• Level III since 2001 up to date NO. CANDIDATES MALES FEMALES FAILED INCOMPLETE PASSED REFRESHERS TOTAL 279 271 8 33 83 161 2 279
• Level IV since 1997 up to date NO. CANDIDATES MALES FEMALES FAILED INCOMPLETE PASSED REFRESHERS TOTAL 67 67 0 2 20 45 0 67
Efforts to Improve Performance
Existing Rural Academy at University of Fort Hare
Recently completed Indoor Facility – The CSA National Centre of Excellence in Pretoria
25 Performance : The Affiliate & Regional Academies
KZNI Academy
NW KZN Academy Aims Academy Semi Pro to Gauteng Franchise GW Academy Academy Player Support & Limpopo FS Academy Academy COE for HUBS UJ &
Unisa Mpumalanga FHU Player EP Academy Academy Support with BA Focus Easterns Border Academy Academy Shop window Northens SWD Academy Academy Boland WP Academy Academy
26 Activities – Regional Academies
Centre of Excellence – GCB/UJ (Service to adjacent community clubs and schools)
UJ Club – Club Development
Regional Academy – UJ/CSA/GCB (Sport Science & Technical Service to broader community/country)
Educational services – Learnership Certificates, Diplomas & Degrees - UJ/CSA/UNISA/UFH
Aspire to achieve holistic development
27 Development Challenges
Challenges (not exhaustive) Mitigation (not exhaustive)
• Poor conversation from mini cricket • Proper functioning of cricket ‘HUBS’ to hard ball cricket • Inadequate facilities, community • Meet with SALGA on facilities issue; structures and focus on schools CSA/GCB/UJ-Unisa initiative; Use CSA Transformation Fund for impactful change in disadvantaged areas • Unacceptable drop out for black • Monitor “quality of opportunity” of all African players throughout pipeline players and and poor retention of coaches at all Establish the Sunfoil Educational Trust levels (SED) • Ineffective development structure for • Revise match officials educational and match officials training programs • Lack support to females in cricket • Enhance female support at HP Centre
28 Development Challenges (cont.)
• Lack of school sports programmes in disadvantaged areas • Disposable income or worsening income gaps • Lack of service delivery • Poor governance and administration
29 Challenges in Access & Opportunity
Wilton Mkwayi Mhluzi, Steve Oval, Tshwete Middledrift Municipality
Proposed new Current oval in facility in Malekutu Malekutu
30 High Performance & World Rankings
• Indoor Facility – R30m capex project funded by CSA [official launch on 13 March 2014] • Regular reciprocal tours for SA Emerging Team and SA ‘A’ – with India and Australia
• Women National Team ODI – 6th – Top 20 Player Rankings: T20 – 8th • ODI Batting: Mignon du Preez (16), Trisha Chetty (19) • ODI Bowling: Shibnam Ismail (12), Dane van Niekerk (14) • T20 Batting: Mignon du Preez (12), Trisha Chetty (20) • T20 Bowling: Marizanne Kapp (4), Shibnam Ismail (18)
st • Proteas Test 1 ODI 3rd – Top 10 Player Rankings: T20 3rd (or joint 2nd) • Test Bowlers: Vernon Philander (1), Dale Steyn (2) • Test Batsmen: AB de Villiers (1), Hashim Amla (4), Graeme Smith (9) • ODI Bowlers: Dale Steyn (2), Lonwabo Tsotsobe (7), Morne Morkel (8) • ODI Batsmen: AB de Villiers (1), Hashim Amla (4) • T20 Bowlers: Lonwabo Tsotsobe (6) Proteas Squad and Performance
Black Black African White Black Black African White Test 7 0 8 Test 40 0 59 TEST TEST SQUAD TEST MATCHES PLAYED P W D L 9 7 1 1 Black Black White White
Black No 1 in the world Black African African
Black Black African White Black Black African White ODI 10 2 12 ODI ODI 107 31 181
ODI SQUAD P W L T ODI MATCHES PLAYED 29 14 13 1
Black Black White No 3 in the world White Black Black African African
Black Black African White Black Black African White T20 9 2 10 T20 33 8 47 T20 T20 SQUAD T20 MATCHES PLAYED P W L T 8 5 3 0 Black White Black White
Black No 3 in the world Black African African 32 (or joint 2nd) Other
CSA will uphold good governance and accountability We will be part of our communities and support social needs wherever we can
Promoting - Social Causes 33 Sport can unite the nation like none other!
34 In Honour of Madiba – Durban, Sun 8th Dec, SA v India
35 ICC Restructure On 8 Feb 2014, CSA supported modified revamp proposals
Proposals Ramifications
• India, England and Australia have • Global outrage followed “leak” of “Big 3” plans teamed up to develop what many view • Control of ICC and profits will go to “Big 3” to be largely self interest proposals • Further concentration of wealth and power in few • Far reaching and wide ranging - covering structure, governance, financial and • Undemocratic and unsustainable competitions
• For example, Big 3 would have reserved seats on Exco and the reserved right to chair Board and committees (Exco and F&CA)
The challenge – most countries are not financially sound and depend on India for its revenue. India not afraid to use leverage to get its way
36 Questions ?