Cricket Australia Annual Report 2012-13 2 PRIORITIES 2012-13
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| Annual Report 2012-13 STRATEGY & VISION To be Australia’s Favourite Sport 1. 2. 3. 4. 5. Increase participation Provide world-class Produce the best teams, substantially and inspire leadership and Grow investment Put fans first players and officials the next generations management and unify in the game in the world of players and fans Australian Cricket JJMost watched sport on JJMen’s and women’s JJ1.2m participants including JJImplement 2011 CA JJGenerate 40% growth TV (and online) by total national teams 200,000 females governance review in total cricket operating viewer hours and reach JJNumber one in all formats JJ250,000 MILO inCricket JJImplement 2011 financial revenue over the touring cycle JJPassion highest of any sport JJInspire the Australian public participants by 2015, model review including 1/3 girls JJDeliver operating JJDiverse fan base that JJ JJFoster excellent The favourite national surpluses across reflects the Australian teams in Australian sport JJNumber one organised relationships with population participation sport in key stakeholders Australian Cricket over the touring cycle JJAttendances average > Australia 1.6m p.a. JJBuild reserves at CA of $60m by 2015-16 and JJ 30% share of all sports $70m by 2016-17 media coverage by 2015 JJInvest at least 75% of revenue JJ World Cup that ignites in pillars 1, 2 and 3 fans’ passion for cricket Cricket Australia Annual Report 2012-13 2 PRIORITIES 2012-13 Significantly grow engagement with female and community participants Continue unification of Successful international summer Australian cricket Improved team performance and Increased staff engagement perfect preparation for Ashes and alignment Continued growth in BBL Successful sponsorship renewals Continue to grow share of Successful domestic media coverage media rights renewal Attract and retain junior Successful implementation of new participants via modified formats financial model for Australian Cricket Cricket Australia Annual Report 2012-13 3 CHAIRMAN’S MESSAGE It’s a year since major cricket governance reforms were approved at the 2012 annual general meeting and I am pleased to report the new board, including our first independent directors, is focussed on the needs of Australian cricket. To most fans, there should be one simple from international matches in return Wally Edwards focus – on field success, particularly Test for guaranteed revenue to states. CHAIRMAN success – by the Australian men’s team. This protects them from volatile Wally Edwards became As a former player, I understand movements in gate revenue due to Cricket Australia’s 37th this. I share the public and player issues such as timing and duration Chairman in October 2011. disappointment in the 3-0 Ashes result of games and weather. A CA Board member which followed the 4-0 loss in India. There is a significant emphasis on better since 1996, Wally was I was encouraged, however, by the team’s aligning CA and State and Territory Australia’s 271st Test increasing competitiveness as the Ashes Associations as one efficient Australian player, playing three progressed and strong resolve as we go cricket organisation which works harder matches in 1974-75. into Australia’s summer. The Australian to deliver to fans, clubs, professional and Team Performance Review was a four- community players, schools, children and year plan and we are half way through commercial partners. that period. I am sure we will give fans more to cheer in the coming months. This has included improved communication between CA and the State Important as it is, on-field success by and Territory Cricket Associations at board our men – and by our women with and management levels at both ends. back-to-back ICC World T20 and ODI championships – is not our only Our 2011-15 strategic plan, which the measure of success. board has asked management to review as we start thinking beyond that horizon, Governance change has been commits Australian cricket to work consolidated with a new, simplified collectively on making cricket Australia’s cricket financial model which sees CA favourite sport by ensuring it is genuinely now receive all gate and signage revenue a sport for all Australians. Continued J Cricket Australia Annual Report 2012-13 4 CHAIRMAN’S MESSAGE important outcome from our media rights discussions; important commercial renewals; and strong increases in the number of Australians, including females, playing cricket among the highlights. I pay tribute to departing directors Harry Harinath and David Dilley, and also to the late Graham Dixon from Queensland Cricket. I also congratulate great cricketers in Ricky Ponting, Michael Hussey and Lisa Sthalekar who have retired from the international game and, along with all in Australian cricket, mourn the death of Putting fans first; developing the complex international cricket issues are former England captain and friend best teams, players and officials in important to a wide range of culturally of Australian cricket, Tony Greig. the world; increasing participation; diverse nations which all have their unifying Australian cricket and growing own outlooks and priorities. Finally, bring on this summer’s investment in the game are what we Commonwealth Bank Ashes call our five strategic pillars. In concluding, I thank my fellow directors, Series, another great season of and also finance, accounting and risk Australian community, state The Ashes result was disappointing management specialist John Davies, for and international cricket but we continue to make good progress his role as independent chair of our Audit and, now very close, the across cricket’s wide range of off-field and Risk Committee, and I thank the 2015 ICC Cricket World Cup activities, all of which contribute to States and Territories for their response which so many in Australia ensuring cricket is genuinely a sport for all to the move towards more collective and New Zealand are Australians and maintains its important Australian cricket thinking. working on to ensure it place in the Australian way of life. is not just a great cricket To CA’s dedicated management and staff event down under, but Globally, CA is an active member of led by James Sutherland, congratulations one of the world’s great the International Cricket Council, with on another strong year, with a range sporting events. strong engagement on the delivery of a of successes such as the KFC T20 Big successful 2015 ICC Cricket World Cup in Bash League attracting new fans to Australia and New Zealand. Elsewhere, the game; progress with the Centre of we state our views in the knowledge that Excellence development; a significantly Cricket Australia Annual Report 2012-13 5 CEO’S REPORT Australian cricket, which is increasingly working as one integrated national sport with a vision of cricket being Australia’s favourite sport, has moved into the new financial year with clear goals. These include winning back the Ashes and has increased over the last decade gearing up for a strong on and off-field and continuing to trend up with the James Sutherland ICC Cricket World Cup 2015 performance. success of the new KFC T20 Big Bash League competition, and strong CHIEF EXECUTIVE OFFICER But they also include a range of other performance by that competition James Sutherland has been targets which are collectively designed, in bringing new fans to the game. along with on-field success, to ensure Cricket Australia Chief cricket is a sport for all Australians of Some 13% of BBL attendees last Executive Officer since all backgrounds. season were new fans and 50% 2001 and is a former were family groups. first-class cricketer Australia’s make up continues to change and our challenge is to ensure that all Cumulatively, cricket had 19.3 million Australians see themselves reflected in viewers across metropolitan and our national sport, whether playing at regional TV, ahead of any other sport school or a local club, attending matches, by a clear margin, according to or watching on TV. independent figures. The past year has seen increased Cricket’s popular place in the public diversity in our participation and fan consciousness helped us negotiate bases, increases in attendance and TV excellent new broadcast contracts with viewers, cricket achieving the highest the Nine and Ten networks, with an TV reach of any sport, strong public outcome that will see BBL increase its popularity of our men’s and women’s audience, and through that, its proven international teams and the strongest ability to bring new fans to the game, measures for fan passion of any sport. by moving to free-to-air TV. Some measures standing out include an The critical importance of the new almost 19% increase in female TV broadcast contracts cannot participation, overall cricket attendance be over-stated. Continued J Cricket Australia Annual Report 2012-13 6 CEO’S REPORT revenue drawing power of different international touring teams which visit each year. The fact that our revenue Changes in 2013-14 varies sharply from year to year leads include delinking the state to Australian cricket’s well-established 50-over Ryobi Cup from Bupa Sheffield revenue-smoothing policy over four- Shield cricket to give it a place and space year cycles which avoids erratic annual of its own, and to better prepare future fluctuations in expenditure in areas such international players for the tournament as state distributions and international style approach they will encounter in and state player payments. Revenue One-day International cricket. for the year just ended was down from Continued J almost $265 million to slightly over $168 million, resulting in moving from a surplus before state distributions of $45.6 million to a deficit of $34.6 million. They add up to more than $840 million KFC. Cricket has the strongest commercial Despite this, long-term revenue over the next five years, a figure that partner program of any national sporting smoothing allowed, among other things, does not include our TV revenue from body in Australia.