Cricket Australia, which is currently facing a huge financial crisis due to the deferral of matches affected by COVID-19, has secured a $ 50 million loan, as a part of a larger USD 200 million credit, which it has sought to cover the losses if India’s tour to the country later this year does not materialise due to the coronavirus pandemic.
According to a report published in ‘The Sydney Morning Herald’, stakeholders have been informed that the loan with the Commonwealth Bank is a “done deal”.
Raises fresh questions
However, the decision to secure the loan has raised a fresh question before Cricket Australia. The cricket body stood down 80 percent of its staff due to the financial crisis.
CA stood down more than 200 staff on 20 per cent pay until the end of June with chief executive Kevin Roberts fearing they might run out of money by August if the drastic cuts were not made.
The decision, which had saved CA about USD 3 million, is in question now with the governing body securing USD 50 million loan.
India’s tour of Australia Could provide some relief
However, the board, which is staring at at a staggering lose of A$ 300 million in the wake of the pandemic, is hopeful that India’s tour of Australia in December-January will take place providing much needed relief from the financial Crisis.
But if India fails to tour, the situation could be worse. Former Test all-rounder Shane Watson, who is the president of Australian Cricketers’ Association Board, will convene a meeting early next week “to formalise a position on the state of the game’s finances”.