Moroe: MSL can break even after 5 years
Cricket South Africa forecast a miserable four-year financial cycle with a loss of R654 million predicted, but this projection was done without the MSL factored in.
“Given the scale that we are operating in today, we would probably start making breakeven by year five.”
CSA has forecast a miserable four-year financial cycle with a loss of R654 million predicted; this projection was done without the MSL being factored in.
South Africa’s cricket body has come from a positive financial year with profits exceeding R350 million due to lucrative tours of India and Australia.
There is no time for celebration for CSA as the Future Tours Programme (FTP) offers CSA little optimism while their investment in cricket development continues to grow.
The loss of sponsors has also had an effect on the forecast. Therefore, the MSL could potentially be vital in the future of CSA’s financial health as the search for new revenue streams picks up.
The new T20 League has been hastily arranged but looks set to go ahead unlike its predecessor last year the Global League T20.
Moroe has said in the past the body has budgeted for a R40 million loss in year one, but this could change depending on the league stakeholders debrief early next year.
“Next year January/February we will sit down with all of our partners [broadcasters, suppliers, and commercial] and we say, how do we make this better? Not only for us at CSA but for yourselves as well. How do we make it easier on the consumers? So, we can either start making breakeven sooner or start making profits as far as this league is concerned.
“Because of the late start this year, we are starting on a very small scale. So, what I present today is going to be very different to what I present next year.”
A lot is riding on the inaugural tournament set to begin on 16 November, however, Moroe says the scale of the league is minute and could grow dramatically is size and scale if the CSA board see it is a viable future revenue stream.
“This year we have a R40 million loss. Next year it could be a bigger loss depending on how big the members want to make the league. Or it could be a lesser loss if we continue on this scale because some of the costs we are suffering now is because of the development of the league. So next year there is nothing to develop it’s just a matter attracting players and attracting more revenues.”
There is no headline sponsor (as yet) for the inaugural tournament with the SABC the primary broadcaster.