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CSA Presentation to Parliamentary Portfolio Committee Tuesday, 28 CSA Presentation to Parliamentary Portfolio Committee 1 Tuesday, 28 March 2017, Cape Town CSA Delegation Chris Nenzani - President Thabang Moroe - Vice President Ms Zola Thamae – Non-independent director Haroon Lorgat – Chief Executive Max Jordaan – Transformation Manager © COPYRIGHT CRICKET SA 2015 The Brief 3 © COPYRIGHT CRICKET SA 2015 4 Introduction CSA is reaping the rewards of having re-engineered its business (operating and funding models) in 2013, 2014 and 2015 Off the Field: Governance, Administration, Finance, Development and Transformation show excellent results On the Field: Men - Currently No.3 in Test match cricket, No.1 in ODI cricket and No.3 in the T20 format; Women - No.6 in ICC International Women's Challenge and No.2 at the recent ICC WWC Qualifier in Sri Lanka. The CSA T20 Africa Cup continues to provide opportunities to many young talented cricketers. It caters for the inclusion of CSA’s 13 Affiliates and 3 African countries • Transformation remains a key pillar of our overall business and we are currently exploring how best to deal with diversity training and management throughout our cricket ecosystem • The new model for cricket in Schools, alongside our RPC & Hubs programme, has proven to be exciting for all in cricket CSA is engaging with potential sponsors to ‘Adopt-a-Hub’. SRSA believes this programme can be a “game changer” for all sport in our country • The Momentum Proteas (Women’s national team) has 14 full-time contracted female players and additional full-time Team Management Staff • The Proteas turned around remarkably from a short slump early in late 2015 and reached exceptional performance levels over the past year • The #ProteaFire campaign continues to inspire performance and social cohesion 5 © COPYRIGHT CRICKET SA 2015 Financial Overview FY2017 FY2016 FY2015 FY2014 FY2013 Forecast Audited Audited Audited Audited Rm Rm Rm Rm Rm Revenue 641 818 765 811 521 Expenses (900) (744) (695) (634) (700) Financial income 39 33 38 22 46 Net profit (loss) (220) 107 108 199 (133) Cash 770 1 023 347 384 299 Debtors 76 75 484 250 123 Retained 594 814 707 599 400 earnings 6 © COPYRIGHT CRICKET SA 2015 Sources of Funding Investment income 5% Amateur Income 4% Coach hire 2% Professional Income 89% 7 © COPYRIGHT CRICKET SA 2015 Expenditure Break-down Coach Hire Central cost National team 2% 8% 9% Amateur cricket 30% Professional cricket 51% 8 © COPYRIGHT CRICKET SA 2015 Governance & Relates Issues 9 Overview of Governance at CSA . The Operating Model (based on Activity Based Funding) implemented in 2014 has aided all our Members to record, at the least, break-even financial results. The implementation of CSA Hubs & RPC’s have proven to be a step change in delivering access to cricket in disadvantaged and rural communities . All of the 43 CSA Transformation Indaba resolutions (Sept 2013) have been implemented . Key successes include: o A sustainable Governance, Operating and funding model for cricket o Member governance and strategies aligned with that of CSA o Geo-political alignment at Member level nearing completion o Grassroots cricket development on track o Increased numbers of black African players in Franchise and National teams o The Momentum Proteas played 23 matches in comparison to 6 in the previous season o Celebrated 25 years of unity in Cricket, culminating in 84 ex-players awarded with a CSA Heritage Blazer 10 © COPYRIGHT CRICKET SA 2015 Governance Structure at CSA Members Council (14 Member Presidents) Board of Directors (12) (Includes 5 Independent Directors) Finance & Audit & Risk Remuneration & Cricket Pipeline Cricket Social & Ethics Transformation Commercial Committee HR Committee Committee Committee Committee Committee Committee Chief Executive Medical / Chief Executives Research Committee Committee 11 © COPYRIGHT CRICKET SA 2015 CSA Board Committees COMMITTEES CHAIRPERSON COMPOSITION Min. 3 Independent Members + Vice President (non Independent) AUDIT & RISK (Statutory) INDEPENDENT * At least 2 Members must have up to date and relevant financial experience and expertise Min. 3 Independent Members + Vice President (non Independent) + AuditCom Chairperson Finance & Commercial INDEPENDENT * At least 2 Members must have up to date and relevant financial experience and expertise Max. 10 members, not less than 3 Board directors, CRICKET NON-INDEPENDENT one of whom shall be the chair of Pipeline Com Max. 8 members, not less than 3 Board directors, CRICKET PIPELINE NON-INDEPENDENT one of whom shall be the chair of Cricket Com HR & REMUNERATION INDEPENDENT Max. 3 committee members SOCIAL & ETHICS INDEPENDENT Min. 3, with at least 1 independent director TRANSFORMATION INDEPENDENT Min. 3, with at least 1 independent director 12 © COPYRIGHT CRICKET SA 2015 Transformation 13 Comparative EPG Scores 2015 & 2016 EPG Score based on Revised EPG score after CSA expected score Original EPG score (2015) National Transformation engagement with the (2016) Scorecard in NSP EPG Secretariat (2015) 28% 51% 42% 94% • Original assessment used a changed scoring system (i.e. score 0 or 100%); had several errors in its compilation and CSA was not afforded opportunity to remedy prior to sanction applied • Subsequently, CSA engaged constructively with the EPG Secretariat to discuss and remedy issues, including adopting a revised tailored scorecard 14 © COPYRIGHT CRICKET SA 2015 CSA Expectations based on Tri-partite MOA on Transformation 1. Assistance with facility development and maintenance 2. Assistance with club development, particularly in disadvantaged and rural areas 3. Assistance and advancement of females in cricket 4. Enhance and streamline schools sports programmes 5. Clarify the placement of schools sport 6. Support and promote Coach Education and Development 7. Provincial Academies to actively support sports science at CSA Hubs and RPC’s 15 © COPYRIGHT CRICKET SA 2015 The CSA Hubs & RPC System – A Tool for Rapid Transformation RPC to play in the Top schools league of the Affiliate at all levels 16 © COPYRIGHT CRICKET SA 2015 The CSA Pipeline The Athlete’s Pathway 5 Prepare Cricketers to transition into careers beyond cricket Prepare Franchise Cricketers for International competition 4 Prepare Senior Provincial Cricketers for Professional Cricket 3 Retain & Develop 2 Modified Cricket – Attract & Retain 1 17 © COPYRIGHT CRICKET SA 2015 Outcomes of CSA – SRSA- DBE Initiative In the current year CSA contributed R6m on maintenance of its 58 Hubs as follows: • R 1,5m – identify 5 potential focus schools to build nets and oval (@R300k each) • R 3,34m – upgrade the existing facilities • R 1,16m – purchased 58 Flicx mats With DBE / Mindset TV channels - access to our programmes as follows: Channel 319 (DSTV) broadcast to 54 territories across Africa OVHD Channel 201 in 526 000 homes in South Africa StarSat Channel 309 in 75 000 homes in South Africa 1 000 schools connected to OVHD 1 600 schools connected to the Mind-set appliance 35 Cricket SA hubs connected to OVHD 18 © COPYRIGHT CRICKET SA 2015 CSA National Squads 2017/2018 Women’s National Squad Men’s National Squad 1. T. Chetty 1. Hashim Amla 12. Morné Morkel 2. M. Daniels 2. Temba Bavuma 13. Chris Morris 3. M du Preez 3. Farhaan Behardien 14. Wayne Parnell 4. S. Ismail 4. Stephen Cook 15. Aaron Phangiso 5. M. Kapp 5. Quinton de Kock 16. Andile Phehlukwayo 6. A. Khaka 6. AB de Villiers 17. Vernon Philander 7. M. Klaas 7. JP Duminy 18. Kagiso Rabada 8. M. Letsoalo 8. Faf du Plessis 19. Tabraiz Shamsi 9. L. Lee 9. Dean Elgar 20. Dale Steyn 10. S. Luus 10. Keshav Maharaj 21. Imran Tahir 11. A. Steyn 11. David Miller 12. C. Tryon 13. D van Niekerk 14. L. Wolvaart 19 © COPYRIGHT CRICKET SA 2015 Impediments to Accelerated Transformation • Country 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 cricket facilities • High costs for transportation • SALGA • NLC 20 © COPYRIGHT CRICKET SA 2015 Strategic Challenges • Maintaining local club cricket facilities. • Engaged SALGA, govt. and other relevant Little or no municipal support role players with limited success • Lack of financial support from central • Continuous engagement with Sports and local governments for Ministry and other relevant departments development and transformation (SRSA have indicated an additional R2m imperatives grant to the CSA Hubs programme) • Sustaining international class stadiums. • New the stadia model and already Implementing the new Safety Act will implemented and a grading system that be costly will right size some stadia. • The looming Bill on Liquor Sponsorship • Reduce critical revenue stream that to sports federations. impacts on sustainability of sports 21 © COPYRIGHT CRICKET SA 2015 2015/16 CSA Indirect Funding – Talent Development Programme/Activities Cost (R’m) Primary Schools’ Programme 9,7 Senior Schools’ Programme 25,4 Clubs’ Support 42,0 Senior Women’s National Team 7,2 SA “A” Team 5,7 Emerging Squad 3,3 SA U/19 Team 7,4 Total 100,7 22 © COPYRIGHT CRICKET SA 2015 Current Sponsors 23 © COPYRIGHT CRICKET SA 2015 Performance & Results 24 RESULTS over the past 11 months Women Men 25 © COPYRIGHT CRICKET SA 2015 Performance as at 15 March 2017 Momentum Women Proteas Top 10 Player Rankings: ODI Batting: Lizelle Lee (7) ODI – 6th • ODI Bowling: Marizaan Kapp (1) • ODI All Rounder: Marizaan Kapp (3) , Dane van Niekerk (4) • T20
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