2002-03 Annual R eport 2002-03 Annual R eport - Australian Sports ...

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From Backyard to Baggy Green demands Cricket Australia: • maintains a secure financial base; • ensures the financial resources are used to support all levels of cricket; and • be responsive to change. 2002-03 Financial performance Cricket Australia generated total revenue of $87.1 million, an increase of $16.3 million on the previous year. The increase can be attributed to additional income from ICC distributions in a World Cup year, overseas broadcast rights, new sponsorship agreements and marketing activities linked to the popularity of an Ashes series. Operating expenditure was reduced by $2.3 million, to $39.3 million. This was mainly due to lower promotional costs for the Ashes series, and costs associated with staging Super Challenge being reflected in the previous financial year. Distributions to state associations increased by $5.7 million to $36.3 million, the highest-ever amount. A growing business The business of Australian cricket has experienced significant growth over the past five years from each of its core revenue streams: gate receipts, sponsorship and media rights. Given the cyclical nature of international tour programs, financial trends are best represented as fouryear moving averages. The four-year average smooths the seasonal fluctuation of media rights sales associated with each home tour, and results over the last decade illustrate a pronounced upward trend in revenue. Revenue Cricket Australia’s revenue continues to grow. Over the past five years, Cricket Australia has generated a 95 per cent increase in revenue. This has largely been triggered by increases in sponsorship and media rights income. Operating surplus The operating surplus for the year, after distributions to state associations of $36.3 million, is $11.6 million. The surplus funds have not been distributed due to the smoothing of both player payments and distributions to state associations over the four years to 30 June 2005. The accumulated funds will be used to support expected operating deficits arising in future years due to fluctuations in revenue streams, such as media rights. The smoothing policy ensures that the future investment in developing the game continues at a consistent level, and is not subject to the annual variances in state distributions. Distributions to state and territory associations Since 1998-99, distributions to state associations have increased by 112 per cent, allowing state associations to increase their involvement in the game from the first-class level through to cricket’s grassroots. The ACTCA and NTCA also received funding, sharing in over $720,000. Australian Cricket Revenue The revenue streams of the seven main Australian cricket bodies – the six state associations and Cricket Australia – are largely managed independently of one another. State revenue streams include gate takings, sponsorship and merchandising. Most states also derive income from other sources including membership, catering, signage and match-day corporate facilities. Under the terms of the Memorandum of Understanding (MOU) between Cricket Australia and the ACA, all cricket-related income from Cricket Australia and the state associations is combined to calculate what is called Australian Cricket Revenue (ACR). The MOU states that 25 per cent of ACR over the four years to 30 June 2005 will be allocated to the Player Payments Pool. The Player Payments Pool is divided between Cricket Australia-contracted players (55 per cent) and state-contracted players (45 per cent). Players ultimately receive their payments out of the Player Payments Pool in the form of retainers, match fees tour payments, superannuation and prize money. Due to a range of factors, including a reduced distribution from the ICC and a downturn in projected media rights income, ACR will not increase to the level that was anticipated when the MOU was first struck in 2001. As a consequence, the Player Payments Pool was revised from $26 million to $25 million for 2003-04. 23 Crowds flocked to the five Orange Test matches, with a 22 per cent increase in attendance on Australia’s last Ashes series in 1998-99. Revenue – four year moving average $90 MILLION $80 MILLION $70 MILLION $60 MILLION $50 MILLION $40 MILLION $30 MILLION $20 MILLION $10 MILLION 1998/99 1999/00 2000/01 2001/02 2002/03 Operating surplus before distributions – four year moving average $35 MILLION $30 MILLION $25 MILLION $20 MILLION $15 MILLION $10 MILLION $5 MILLION $35 MILLION $30 MILLION $25 MILLION $20 MILLION $15 MILLION $10 MILLION $5 MILLION 1998/99 1998/99 1999/00 1999/00 2000/01 2000/01 2001/02 2001/02 2002/03 Distributions – four year moving average Opposite page. More than 920,000 people passed through the gates at international fixtures throughout the 2002-03 season. 2002/03
ENSURE CRICKET HAS A STRONG AND SUSTAINABLE FINANCIAL BASE Cricket’s popularity is reflected in its impressive portfolio of major sponsors. Growing existing revenue The relationship between Cricket Australia and its commercial partners continues to provide the financial foundations that underpin the success of the game, from the grassroots to the elite levels of competition. In return, cricket continues to help these companies achieve tangible return on investment as they leverage their association with the game and Australian team success. Cricket’s popularity is reflected in its impressive portfolio of major sponsors, and in 2002-03, the Ford Motor Company joined that list. Hutchison 3G Australia Hutchison 3G Australia experienced its second season as the naming-rights sponsor of the Australian Test team at home and the domestic Test series. In 2002-03 Hutchison used its Orange mobile phone brand for naming rights during the five-Test series against England. Moving forward, it will align its new 3 brand with its Test cricket sponsorship, complementing its exclusive rights for mobile wireless communication (3G) in Australia. During the 2003-04 summer of cricket, users of Hutchison’s 3 network will be able to access video highlights of the Australia/India/Zimbabwe series via all 3 mobiles. Throughout the series, the service will provide cricket fans with video wraps as well as score updates during both Test matches and one-day internationals. Carlton & United Breweries Carlton & United Breweries (CUB) entered its second year of a five-year agreement as sponsor of Australia’s one-day international cricket series. The company has sponsored the series since 1996-97 and is also the official supplier of beer products to Australian teams at home and overseas. In 2002-03, CUB again associated its famous Victoria Bitter (VB) label with cricket, by branding the tri-angular series between Australia, England and Sri Lanka, the VB Series. Travelex The world’s biggest foreign exchange specialist, Travelex, is Australia’s major sponsor for all overseas tours. This meant that in 2002-03, the Travelex name appeared on Australian Test and one-day international uniforms for tours to Kenya, United Arab Emirates, the ICC Cricket World Cup in Southern Africa and the West Indies. The partnership also includes the exclusive rights to all Australia A and Australian under- 19 tours. Ford The Ford Motor Company is the new automotive partner of Australian cricket. The partnership sees Ford supply vehicles to Cricket Australia and all state and territory associations for three years. Ford used the sponsorship to help promote its new BA Falcon range. During the innings-break at all VB Series matches, Ford Performance Vehicles sponsored the sprint series which showcased some of the nation’s best sprinting talent. ING Financial services company, ING, has sponsored Australia’s domestic limited-overs competition for the past 11 years. In 2002-03 cricket fans across the nation experienced the competition with matches played at venues from New South Wales’ Stadium Australia, Drummoyne Oval and Coffs Harbour as well as the Victorian city of Ballarat. A healthy television audience watches the ING Cup competition via the quality free-to-air coverage of the Nine Network. 24
Page 1 and 2: 2002-03 Annual Report
Page 3 and 4: • Australia claimed victory at th
Page 5 and 6: CHAIRMAN’S MESSAGE Bob Merriman A
Page 7 and 8: CORPORATE GOVERNANCE Cricket Austra
Page 9 and 10: BOARD OF DIRECTORS Brian Freedman,
Page 11 and 12: Meetings of Directors The table bel
Page 13 and 14: Organisational chart at 30 Septembe
Page 15 and 16: ELITE-LEVEL SUCCESS To thrive at th
Page 17 and 18: ELITE-LEVEL SUCCESS Top. National s
Page 19 and 20: ATTRACT, DEVELOP AND KEEP PEOPLE IN
Page 21 and 22: ATTRACT, DEVELOP AND KEEP PEOPLE IN
Page 23: Nathan Bracken claimed 15 scalps du
Page 27 and 28: Swimming Cricket - Outdoor Tennis A
Page 29 and 30: Nathan Bracken claimed 15 scalps du
Page 31 and 32: STRENGTHEN AND PROTECT THE SPIRIT O
Page 33 and 34: State/territory associations State/
Page 35 and 36: State/Territory Associations The ne
Page 37 and 38: State/Territory Associations Top. N
Page 39 and 40: State/Territory Associations Top. M
Page 41 and 42: Tributes and Milestones Adam Gilchr
Page 43 and 44: Tributes and Milestones Young talen
Page 45 and 46: Tributes and Milestones Pic courtes
Page 47 and 48: Tributes and Milestones One of the
Page 49 and 50: Tributes and Milestones Stuart MacG
Page 51 and 52: Tributes and Milestones Justin Lang
Page 53 and 54: Tributes and Milestones Damien Flem
Page 55 and 56: Tributes and Milestones Lisa Keight
Page 57 and 58: CRICKET AUSTRALIA FINANCIALS The fi
Page 59 and 60: CRICKET AUSTRALIA (FORMERLY AUSTRAL
Page 65 and 66: Australian cricket enjoyed a succes
Page 67 and 68: I nternational Cricket Council Cham
Page 69 and 70: T ravelex Tour against Pakistan in
Page 71 and 72: O range Ashes Test Series in Austra
Page 73 and 74: O range Ashes Test Series in Austra
Page 75 and 76:
O range Ashes Test Series in Austra
Page 77 and 78:
VB Series in Australia, 2002-03 Eng
Page 79 and 80:
I nternational Cricket Council Cric
Page 81 and 82:
I nternational Cricket Council Cric
Page 83 and 84:
T ravelex Tour of the West Indies,
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
A ustralia A, 2002-03 The final one
Page 91 and 92:
Prime Minister’s XI v ATSIC Chair
Page 93 and 94:
P ura Cup, 2002-03 A genuine highli
Page 95 and 96:
ING Cup, 2002-03 Victory in sight.
Page 97 and 98:
ING Cup, 2002-03 2002-03 ING CUP FI
Page 99 and 100:
Commonwealth Bank Southern Stars fo
Page 101 and 102:
Commonwealth Bank Southern Stars As
Page 103 and 104:
Commonwealth Bank Southern Stars As
Page 105 and 106:
W omen’s National Cricket League,
Page 107 and 108:
Australia Under-19 v England Under-
Page 109:
Commonwealth Bank Shooting Stars v
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