New Zealand news June 19, 2011

NZC to cut costs by US$ 3 million

ESPNcricinfo staff

New Zealand Cricket (NZC) will be cutting costs by around US$ 3 million and, as a result, the country's professional players will have to wait until 2015 to receive part of their salaries for the next financial year. The appreciation of the New Zealand dollar in relation to the US$ - the currency in which a significant amount of NZC's revenues are paid - and poor gate receipts during Pakistan's tour have led to a drop in projected income for the financial year ending July 31.

The deferment in pay falls within the purview of an eight-year agreement signed between NZC and the New Zealand Cricket Players' Association in which the parties follow a 'risk and reward' model whereby players earn a significantly greater income during economically lucrative times, but absorb the shortfall during recession.

"We are looking in the region of trying to claw back about $3 million in cost savings. Ideally, we'd do it through driving additional revenue but the US dollar rate doesn't help us and the market internationally is tough," NZC CEO Justin Vaughan told the Sunday Star-Times.

However, irrespective of how good or bad the revenues are, a significant amount, as per the agreement, is allocated each year to the development of the game at the grassroots.

Heath Mills, the CEO of the players' association, said that while players were disappointed with their deferred pay, they understood it's a part of the agreement.

"One of the key tenets of the master agreement, which we are very committed to upholding, is that when the game does well, the professional game - particularly the players - benefit and get a far greater share of the upside," Mills said. "But the quid pro quo is that when the game hasn't gone so well and the revenues aren't what we expect, then the professional game and the players need to pick up the shortfall.

"The amateur game - the grassroots level of the sport - has its funding protected now as part of the agreement.

"We have been working with NZC to highlight areas in which cuts can be made for the next financial year without unduly affecting the professional cricket programme or the ability to retain players. A number of those cuts occur around the player payment pool.

"From a player's point of view, while it's disappointing, we understand that it's the nature of the deal."

Mills said it was the players' duty and obligation to keep the partnership with NZC alive and expected the situation to improve from 2013 onward.

Comments have now been closed for this article

  • Mark on June 20, 2011, 2:08 GMT

    NZC..... Develop good coaches at domestic level who dont come from overseas and you have to pay them twice the amount of a local..... Savings around 50k in Auckland for the Zim guy, 80k in Wellington for both Siddons and the other Aussie Beitz or Deitz?? Oh wow there is a savings of 140k already!! NZC cant afford to be handing out money to the Wellingtons, Aucks to give money away to 2nd rate Aussie and Zim coaches! USE your own talent!!!!

  • Dummy4 on June 19, 2011, 21:03 GMT

    Excuse me, fans, but New Zealand is hardly the size of a country like India. Cricket isn't the national sport also, so you've got to be realistic about a player pool and the money that can support it. You've also got to remember the trials the country is going through at the moment with the Christchurch Earthquake disaster that is ongoing. Estimates of that clean up are around $6 billion. As a nation, we just can't afford it and our currency is understandably not quite favourable of late. While the government may not fund NZC at a great level, the facts are we are a small country and we continually fight above our weight. I don't think anyone over here sees the above article as a particular problem. No New Zealand cricketers have run away and "done-a-Gayle" as of yet. In fact, most of our good cricketers play IPL anyway - it's an exciting time with John Wright as coach and John Buchannan in the mix too - who Kiwis have a lot of respect for.i

  • David on June 19, 2011, 20:04 GMT

    Realistically, NZCricket is just doing what it has to do.

    NZ does not have the domestic market to generate $$$, similarly they do not have the pulling power to woo big teams (& big TV contracts) to NZ. India toured in March/April 2009 - NZC said at the time that this set of TV rights was the basic funding for NZC for the next 4 year cycle as the earnings for that series equated to (approx) 3/4 of there income for the period until India next tours. Under the Future Tours program at least NZC knew India was going to come back - now they have no assurance of that.

    I cannot see how NZ will ever again field a team during the IPL window - I see that window as open for the Pro Cricketers of NZ to earn a living. As a result NZ's domestic level cricket will be very weak - no international reps will play 4day cricket due to International / IPL / HRV Cup requirements and NZ will struggle to find more international players. A team tours will effectively become selection trials.

  • Dummy4 on June 19, 2011, 18:27 GMT

    This salary cut of the players of NZ in view of the poor income from the pakistan tour is an absurd. The model used by NZC is stupid. It demotivates players. The model should reward the players performing and it should not depend on the factors like currency appreciation and so on. This situation will result in players moving to more lucrative avenues like IPL and be detremental to NZC.

  • Dummy4 on June 19, 2011, 18:12 GMT

    It just brings that extra dimension into the game. Where teams from the subcontinent can argue about who makes it into the team and who is the captain, there's hardly ever any monetary dispute or arguements over wages unlike in countries such as WI and NZ. A player's loyalty is definitely tested when he asks himself if he should play for less money and hope the situation gets better. Opposing teams may start to wonder if these teams would perform better against them if money matters were in order. Sponsors may be less eager to come forward n support the game in these countries and the boards become more n more dependant on the public to come and attend games. I guess for all the problems the subcontinent teams face, theirs could always be a duller predicament.

  • Stark on June 19, 2011, 15:30 GMT

    More bad news for cricket in general!

    We will see more players doing a Pollard or Gayle.

  • Dummy4 on June 19, 2011, 13:28 GMT

    Invite India for a bilateral series!!

  • Balakrishnan on June 19, 2011, 13:26 GMT

    I wonder whether John Buchanan has something to do with this. Now it's time for NZ players to take the Gayle, Pollard, Bravo way.....

  • Ashley on June 19, 2011, 8:47 GMT

    Then don't stop them from honoring tournaments like the IPL...

  • Dummy4 on June 19, 2011, 8:21 GMT

    if nzc spent some money on developing good young players who don't get injured like the rest of the world do more people would come through the gates. but it's up to the new zealand public as well to support the team. season tickets should be cheaper and there should be more exhibition matches so the new zealand public have more chances at home to see their team. no one wants to go see the same horse getting flogged twice a year.

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