COVID-19 impact: ECB report annual loss of 16.1 million pounds
The England and Wales Cricket Board (ECB) have admitted that they have suffered an annual loss of £16.1 million ($22.8 million), with their cash reserves coming down to just £2.2 million. The ECB blamed the COVID-19 pandemic for the steep fall in numbers.
According to an AFP report, the ECB had announced reserves of more than £70 million in 2016. However, start-up costs for The Hundred, ECB’s much-hyped franchise competition, cut the amount to £11 million by 2019. The Hundred is likely to held this year after it was postponed in 2020 due to COVID-19.
The ECB also informed that revenue losses across English cricket as a whole were over £100 million as matches were played in bio-bubbles and behind-closed-doors. ECB’s financial statement further revealed that the cricket board’s revenue fell by £21 million to 207 million pounds.
Scott Smith, chief financial officer at the ECB, explained that the board avoided a worse scenario by taking decisive action early on.
"This has been a challenging year. But by being able to stage international cricket and by taking decisive action early in the pandemic, we have been able to support the network and avoid a far worse financial scenario. There remains considerable uncertainty over the year ahead, but we hope that delivering another full summer of cricket -- and with crowds beginning to return from next week -- we are able to protect the revenue we need to invest in growing our game," Smith said in the AFP report.
"COVID-19 has the weakened underlying financial health of the whole game" - ECB chairman Ian Watmore
ECB chairman Ian Watmore, in his blog, lamented that COVID-19 had thrown the board's finances completely out of gear. He wrote:
"Covid-19 has weakened the underlying financial health of the whole game - professional cricket in particular - leading to income falls, cash-flow squeezes, deferred investments, downsizing, an escalation in debt, all against an uncertain global and domestic economic backdrop. This has led to concerns of survival, stability and sustainability of many entities within the game, and hence the entire 'eco-system' of the game as we know it."
Admitting that the ECB are facing significant financial challenges, Watmore remained positive about finding a way out.
"The financial challenges we face are significant, but I believe that by working through this together, we can find the right answers to ensure we have a sustainable business plan for the future and deliver on the ambition of growing the game," he added.
New Zealand and India are due to tour England next month. The visiting sides will also face each other in the World Test Championship (WTC) final. However, with COVID-19 still having a say, the matches are likely to be played behind-closed-doors.