West Indies board clarifies financial position

The West Indies Cricket Board (WICB) is saying that recent reports of its bankruptcy are overstated.

Reacting to last week's CMC Sports report that implied the WICB was putting all its eggs in one basket and hoping for the windfall of the 2007 World Cup to bail it out of debt, the board responded: "The board is currently investing in preparations for hosting World Cup 2007, which is the third largest global sporting event after FIFA's World Cup and the Olympic Games and on which US$22.0 million was invested as at September 30, 2005."

Adding that the consolidated financial statements used in the CMC report included the results of both the WICB Inc and the ICC Cricket World Cup West Indies 2007 (its 100 per cent owned subsidiary), the WICB said accounting standards require that the $22 million is not reflected as an investment in the balance sheet to be offset against the revenues from the event.

"Without these amounts," the WICB report stated, "the accumulated deficit in the consolidated accounts would reflect US$15 million, which has been fairly constant over the past four years and which is not going to increase in the current financial year."

It went on: "The board also wishes to draw attention to its improved performance in the current financial year which is expected to show a break-even position at year-end September 30, 2006, compared with a loss of US$6.5 million in the prior year."

Additionally, the board said steps have been taken by the WICB to reduce costs and to identify new lines of revenue, including the Windies Superball Lottery game to be launched in August 2006; the WICB Co-branded Credit Card; the ODIs to be held in conjunction with the Board of Control for Cricket in India; and the licencing and merchandising programme promoted in connection with the 2007 World Cup.

According to the CMC Sports report, the financial statements indicated that the WICB and its World Cup subsidiary had incurred a net loss of US$19 million, during the year ended September 30, 2005.

"And as of that date, it had accumulated a deficit of US$34 milion and the group's current liability exceeded its current assets," the report stated.