WPCA Treasurer's Report

In line with forecast, the Association has made a loss of R213 557 before abnormal item for the year to 30 April 2000. This loss is less than the loss budgeted for 2000 and also below the loss reported in 1999.

As has been reported in previous years, the Association expected to be under cash flow pressure at this time and will remain so for another season or two. The signing of the deed of sale for the purchase of the Newlands ground from the Western Province Cricket Club and the potential of World Cup cricket opens up a number of opportunities to address the negative cash flow position. The executive is abreast of events and a number of options are being examined. There is no cause for undue concern.

The two notable highlights of the past years financial performance have been:

1. The impact of the English tour, resulting in cricket revenues of R4,2 million exceeding budget by almost R400 000 and doubling the amount earned in 1998/1999 season. Included in this was also the One-Day International, SA vs Australia, which was a great financial success earning a nett of R546 668.

2. The increase in UCB revenues, significantly up against the budget.

The Association has managed to contain overall operating costs close to budget bearing in mind the stringent budget set. Finance charges have risen sharply due to increase in interest rates following the Asian crisis leaving overall expenses R900 000 above the budget. Special thanks go to Arthur Turner and Peter Heeger who are managing the finances of the Association with great responsibility.

For reasons only they can explain, Standard Bank elected not to continue as our lead bankers after 67 years of wonderful support. This was particularly disappointing as the Standard Bank's sponsorship of the One-Day Competition has given the bank terrific exposure, and significant World Cup revenues are a matter of a year or two away. The Association is extremely pleased though at the very positive response it has received from ABSA Bank whose understanding and support have been most refreshing - making it even more difficult to understand Standard Bank's decision!

Now that the acquisition of Newlands is a reality, the immediate benefit is that it brings the full value of the stadium into the Association`s books. The purchase price for the land of R33 million, payable on 1 May 2002 should the conditions precedent be met, will raise the book value to R66 million, but the market value is estimated conservatively to be closer to R120 million. Against this considerable asset base, the Association will have liabilities in the order of R50 million. These liabilities will be bridged over to World Cup 2003 and be substantially repaid out of the World Cup revenues leaving the Association to generate significant positive cash flows in future years to meet the challenges that face cricket development in the province.

The ownership of Newlands and the wealth that this unlocks brings to reality a dream, which began with unity in 1991 when the then WPCU and the WPC Board's combined assets totalled approximately R500 000. Nie sleg vir `n klomp "amateurs" nie!

But the dream could not have been realised if true commitment to the process of transformation had not been maintained. The guiding light has been and remains that the generations of cricketers that follow will play their cricket in an atmosphere of total freedom with the right to choose their own cricketing destinies as they deem fit.

The Association can also be proud of its record of financial support it has granted to the Clubs and to grassroot development over the past 9 years. The level of commitment and the degree of professionalism exhibited by the Association's many sub-committees and the staff is often commented on by other cricketing authorities around the world.

It has been difficult for me personally to give the Clubs the necessary attention in recent times. Whilst I truly appreciate the tolerant attitude of my fellow executive members and that of management to accommodate my overseas business travel, I have decided that it is not in the best interest of WP Cricket that I remain on in the capacity of Treasurer. I have had 13 wonderful, stimulating and exciting years as Treasurer - one could not have asked for more, having experienced the transformation of cricket in South Africa and the development of Newlands to the beautiful stadium it is today.

My sincerest thanks go to the Presidents, past and present, whom I served, the life and executive members, the sponsors, the media, the incredible staff - our greatest asset, the players and the members of the cricket Association - you have all enriched my life, and that of my wife Marie. It has been an honour to serve you all and we wish you the very best of success as the Association goes forward from strength to strength.