ECB's first report underlines need for TV revenue (13 May 1998)

13 May 1998

ECB's first report underlines need for TV revenue

Christopher Martin-Jenkins

LORD MacLAURIN struck a note of strictly qualified optimism in presenting the first annual report of the England and Wales Cricket Board to some 100 delegates of 38 county clubs at Edgbaston yesterday. Noting that the level of commitment to the game was undiminished at all levels, he warned that the optimistic future depended on increased revenue, especially from television rights.

In his chairman's report, MacLaurin writes: "Much still needs to be done and the game will only continue to grow - particularly when it is up against fierce competition from other sports and leisure activities - by improving standards still further at all levels and attracting revenue through television and sponsorship."

Admitting that the ECB's sponsorship portfolio is in "a transitional phase", the report highlights the keen interest with which ECB managers are awaiting the Government's decision - due before the end of this month - on the delisting of national sporting events. Only the wide-ranging Vodafone sponsorship, centred on the England teams, and the renewal of the Cornhill Insurance Test contract are mentioned as marketing successes since the ECB was born in January 1997.

The one-day internationals, the National League (the new one-day county competition next year) and a range of recreational competitions are all without a sponsor at present and all may hang on a suitable television deal. As soon as Chris Smith, the Minister for Culture, Media and the Arts, makes his decision, the board's marketing department are planning to begin negotiations with the BBC, Sky and other interested channels.

The first proper accounts produced by cricket's governing body reveal that £43.6 million has been received from broadcasting contracts, ticket sales for international matches and sponsorship since January, 1997. Television and radio rights represent 40 per cent of the board's income. Administrative costs have risen considerably, although there are no Test and County Cricket Board figures against which to measure them since they never published accounts.

Mainly as a result of several new executive appointments since MacLaurin became chairman, and his determination to force a more professional approach to commercial activities, public relations and development of the grass-roots game, administration and development expenses amounted to £7.2 million. But this is still relatively small compared with expenditure on the game itself: tours and match expenses cost £12 million and the distribution to the first-class and Minor Counties the largest sum: £24.4 million.

The Cricket Foundation awarded £2.24 million for development in 1996-97 - most of the 65 regional development officers are funded in this way. Moreover, cricket is revealed as the sport which has gained most from Lottery awards: more than £48 million for 414 projects.

The ECB made a profit of £174,000 last year before taxation, retaining £81,000 for reserves.

Summing up, the board's chief executive, Tim Lamb, mentioned as encouraging developments the growth in women's cricket clubs - 27 new clubs since the ECB took over - and new playing and spectating facilities on many grounds. He claimed again that "as many schoolchildren, about one million boys and girls, are playing the game as at any time in the history of the sport".

The report does not ignore the mixed results of the England team nor the embarrassment of the industrial tribunal who implied gross mishandling of the dismissal of a female employee after she had had an abortion. The report states: "The chairman initiated a review of the case and proposed the commitment of more resources to personnel management."

This unfortunate note in a generally bullish report touches on the weakest point of cricket's new government. The jury must remain out on whether the expenditure on many new jobs at Lord's has been justified by events. The investments in marketing activity, public relations and development of recreational cricket will take time to bear fruit and the unrest in the professional game will remain, no doubt, until the England team start to win major series again.

Source :: Electronic Telegraph (https://www.telegraph.co.uk)