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CSA Report to Parliamentary Portfolio Committee on Sport and Recreation

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CSA Report to Parliamentary Portfolio Committee on Sport and Recreation 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& 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
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