Cricket Was The Winner

Sydney Morning Herald

Monday December 17, 2007

Roy Masters

AUSTRALIA'S match against New Zealand yesterday was the first of Cricket NSW's internationals at the Sydney Cricket Ground this summer, representing the halfway mark of the five-year contract between the state body and the Trust.

When the deal was announced late in October, 2004, Telstra Stadium, the underbidder for the cricket tests and one day matches, cried foul.

Telstra Stadium's boss, Ken Edwards, claimed he was told an 11th-hour bid of $70 million over five years was "too late".

The NSW Auditor-General was asked to investigate the possibility of the deal bankrupting the SCG Trust, a statutory government body. A few days later, Cricket NSW's chief executive, Dave Gilbert, responding to pressure from district cricket clubs for a share of the $60-$70 million windfall, declared the deal "wasn't even double figures".

It was about $7 million over five years. How can a bid of $70 million be rejected in favour of one a 10th the size?

Edwards was bundling up all the monies Cricket NSW would receive from games at Telstra Stadium, while the cricket body was merely selling the rights to stage the games.

A gate of between $6 million and $7 million per test over five years, plus corporate hospitality, plus the rights from the venue, equals $60 to $70 million.

Telstra Stadium, under pressure from its owners ANZ Bank to demonstrate financial responsibility, were anxious to position the Trust as willful spendthrifts, while Cricket NSW probably never intended leaving the SCG, their home for over 120 years.

Gilbert admits to fuelling the rivalry that created the $70 million headlines.

"Cricket had every right to exercise the route it took to get that result," he said. "All we did is what other sports - rugby league, rugby union - do. We declared we were going to tender and all of a sudden all hell broke loose. The Trust told us you can't do this."

Competition between the stadia probably cost the Trust an extra $1.5 million over five years but it has been a good investment, based on revenue increases.

Cricket represents 35 per cent of the Trust's revenue - mainly catering and membership fees - which has risen from $27.42 million at February 28, 2000 to $65.1 million this year.

Expenditure has risen similarly over the same period, from $26.45 million to $59.6 million, producing a surplus that has grown from $973,000 to $5.49 million.

"Cricket is a significant contributor to the profitability of the Trust," chief executive Jamie Barkley said. It has allowed the Trust to embark on an ambitious self funded capital works program, spending $19.5 million this year, with $58 million allocated for 2008 and $55 million for 2009.

Most of the investment is in a $82 million SCG grandstand to replace the old Hill stand, providing 6000 additional premium seats, for which Cricket NSW will charge more.

Barkley says: "Every dollar we make is reinvested for the benefit of spectators and players.

Plus Cricket NSW.

Gilbert says: "We've been able to significantly increase funding at grass-roots level. It's been a good deal for cricket and the Trust, a win-win situation. The two bodies have got on the best we have for a long time because of the deal we did."

But for how long?

"Post 2010, it's on again."

© 2007 Sydney Morning Herald

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