CSA Report to Parliamentary Portfolio Committee

on Sport and Recreation

Cape Town

11 February 2014

Chris Nenzani – President

Peter Cyster – Vice President

Haroon Lorgat – Chief Executive

The CSA Delegation

2

The Brief

To report on:

1. Annual Report 2012/2013 (includes financial results)

2. CSA Strategic Plan (and our challenges)

3. Progress in Terms of Development Programmes

4. Other

– New respect for good governance

– The International Cricket landscape (including current ICC

restructure proposal and the CSA/BCCI relationship)

3

1. Annual Report

Executive Summary:

New form Integrated report 2012/13 produced for the first time – impressive, comprehensive and transparent

Successful AGM held on 12 October 2013 following a few years of reputational damage

CSA key focus areas Grassroots cricket development

Sustainable cricket funding model

Align governance and strategies with Members

Greater Africanisation of cricket

Raising the profile of women’s cricket

Achieve geo-political alignment at stakeholder level

4

The CSA Board

• New Board elected on 2 February 2012 as part of new governance structure following recommendations in the Nicholson Report

• Board comprises 12 Directors - 7 Presidents elected from Members Forum and 5 Independent Directors. The Board does not have any Executive Directors

• Board reports to Members Forum, which is the highest authority made up of all the Affiliates

Independent

directors (5)

C Nenzani P Cyster F Jaffer A O’Connor R Richards B Williams G Sauls

N Arendse M I Khan D Mokhobo V Pikoli L van Zeuner 5

Revenue streams

Major Income Streams

• International Broadcast Rights – fluctuates/cyclical based on

fixtures (Future Tours Programme or FTP)

• Domestic sponsorships (SAB, Momentum, Sunfoil, Blue label, RAM couriers)

• Revenue from Champions League T20

• ICC distributions – fluctuates as it is ICC Event driven

• Other: ticket sales, financial income (interest, forex gains)

6

2012/13 Expenditure

Central Head Office Cost 9%

[CATEGORY NAME] [PERCENTAGE]

[CATEGORY NAME] [PERCENTAGE]

Professional Cricket 28%

Amateur & Cricket Development

23%

CLT20 & Other Services 18%

Financial Results 2012/13

Audited 2012/2013

Rm

Audited 2011/2012

Rm

Change

Rm

Revenue 521 430 91

Expenses (700) (518) (182)

Financial income 46 41 5

Net loss (133) (47) (86)

Cash 299 475 (176)

Retained earnings 400 533 (133)

8

Current 4-Year cycle (2011-2014)

Forecast 2011-2014

Rm

Revenue 2 341

Expenses (2 349)

Financial income 294

4-year net surplus 286

9

Key points on finances

4-year business/budget cycle, of which two are profit making

years – mainly due to the ICC CWC and lucrative India or

England inbound tours – and two loss making years

Commercial partners are presently confident with CSA and

growing their involvement in cricket

CSA currently reviewing the sustainable economics of the

cricket setup in South Africa – serious challenge needing re-

engineering as individual Affiliates are loss making

10

2. Strategy

STRATEGY

• A truly national sport of winners

Vision

• Transformation

• Operational Excellence

• Commercial / Marketing

• Legal and Governance

• Cricket Development (Amateur & National Teams)

• Communication

Objectives

• Promoting and protecting the game and its unique spirit in the context of a democratic South Africa

• Base our activities on fairness, which includes inclusivity and non-discrimination

• Accepting South Africa's diversity as a strength

• Delivering outstanding, memorable events

• Providing excellent service to Affiliates, Associates and other Stakeholders

• Optimising commercial rights and properties on behalf of our Members

• Implementing good governance based on King 3, and matching diligence, honesty and transparency in all our activities

• Actively marketing cricket from Mini Cricket to the Proteas

Mission / Strategies

12

STRATEGIC CHALLENGES

Challenges (not exhaustive)

• Improve governance at Affiliate level

• Representation, especially at senior and professional level

• Lack of opportunities for disability cricket

• Successful National Women’s team

• Poor awareness of the details of the cricket development programmes

• No engagement with Dept. of Education

• Need to record history and acknowledge all the past SA players, black and white

• Align Members MOI with that of CSA

• Incentive based targets and reward for quality based opportunities for BA players

• Formation of a Cricket Disability Forum

• Full time national player contracts (6) and a coach (Hilton Mooreng) + more game time

• Development of inter-disciplinary and trans- institutional projects with Gauteng Cricket, UJ, Unisa & Mindset Networks

• Seek to develop strategic relationship

• Activate projects to deliver outcomes

Mitigation steps (not exhaustive)

Strategic application of CSA Board approved annual R10m transformation fund 13

Strategic / Business challenges

Challenges (not exhaustive)

• Fluctuating revenues dependent on inbound tours increases financial risk

• Lack of demand for live match content from SABC broadcaster

• Financial sustainability of Affiliates & Franchises questionable

• Inadequate reporting from Affiliates on development spend

• Possible regulatory changes would impact revenue i.e. subscription TV and alcohol advertising

• Declining stadium attendances

• Inadequate staff skills and support

• Diversify revenue. Source from local corporates and government

• Engage with SABC to encourage live broadcast to benefit more people

• Tackle the entire economics & structure of cricket (Funding model review)

• Greater involvement of CSA internal audit function

• Monitor and make appropriate submissions to relevant authorities

• Task team appointed to review

• Review competencies and appraise performance more decisively.

Mitigation (not exhaustive)

14

Cricket Development Pipeline

SA “A”

Franchise cricket

National Academy

Semi Professional

Regional Academies/Fort Hare Project/Tertiary/Colts

SA U/19

Talent acceleration Programme

Schools cricket

KFC Mini Cricket

Pu

rpo

se d

rive

n M

ento

rin

g

Sup

po

rt S

ervi

ces

& P

rogr

amm

es

Quality opportunity,

Developing &

retaining talent

Performance, Quality

Opportunities &

Developing talent

15

Cricket Development Funding

Regional Programmes 1 284 467

Women's Cricket 1 669 349

Central Place Cricket Centers 6 422 337

Payroll & related costs 17 881 467

Administration 2 140 779

Club Cricket 7 706 805

Schools Cricket 3 854 458

Total R 40 959 662

Regional Programmes Women's Cricket

Central Place Cricket Centers

Payroll & related costs

Administration

Club Cricket

Schools Cricket

CRICKET DEVELOPMENT FUNDING

Progress in Terms of Development

Programmes

While we have a sound development programme in place, we are not satisfied with the rate of retention and upward progress of black African players right through to international level

We must access talent within the greater population to ensure we are to be “A truly national sport of winners”

Research studies have made us aware of some of the key challenges, for example 65% indicate social challenges faced by BA cricketers hinder progress and 83% commented on opportunities for BA cricketers

We have started to address these issues – formed the Sunfoil Education Trust (circa R1.5m current availability and +-R700k to be added annually) Archbishop Ndungane and Pinky Moholi are CSA’s independent Trustees; and

Monitor participation by measuring the “quality of opportunities” provided to BA players

17

Schools & Youth

Primary Schools

• Participation figures 1 591 schools, 290 leagues

• Spend R3m

• Cricket Weeks U13 Senior Schools

Senior Schools

• Participation figures 1 044 schools, 170 leagues

• Spend R3,9m

• Cricket Weeks U15, U17, U19 (boys & girls)

• Colts Week process to deliver SA U/19

18

National Cricket Weeks’ Representation

52

25

49 43 42

36

15

38 40 43

[VALUE]

[VALUE]

[VALUE]

[VALUE]

[VALUE]

95

45

99 103

96

CCKM U19 CUBS 19 U17 U15 U13

Schools: Age Group Opportunities

African Coloured Indian White

39 27

[VALUE]

130

112

[VALUE] [VALUE] [VALUE]

BLACK AFRICAN COLOURED INDIAN WHITE

Universities’ Weeks

USSA A USSA B

Growing participation

and representivity

24%

20%

5%

51%

Selectors

1

2

3

4

Senior Cricket

• Clubs – 886 (R1,3m)

• Tertiary – 26 Institutions • University Sports South Africa

USSA ‘A’ Week

USSA ‘B’ Week

• Rural – 16 Regions

• Women –16 Affiliates/Associates – Super 4

– Training Squad

• Disability Cricket

– Blind, Deaf, Intellectually Impaired

20

SA U/19 World Cup in UAE

21

ICC Cricket World Cup – Feb & Mar 2014

(takes place every 2 years)

• SA U/19 Fixtures

• Warm up matches:

– 10 Feb: vs Namibia, Dubai

– 12 Feb: vs India, Dubai

• Group matches;

– 14 Feb: vs West Indies Dubai

– 16 Feb: vs Canada Abu Dhabi

– 18 Feb: vs Zimbabwe Abu Dhabi

• Quarter Finals: 22/23 Feb

• Semi Finals: 24/25 Feb

• Final: 1 March Dubai

• Past Performances:

– 2012 – 3rd place

– 2010 – 5th place

– 2008 – Runner up v India

– 2006 – Plate Semi-final

– 2004 – Super League Group Stage

– 2002 – Runner up v Australia

– 1998 – Super League Group Stage

SA U/19 World Cup Team

22

Management team Manager: Morgan Pillay (Indian) Coach: Ray Jennings (White) Assistant Coach: Mandla Mashimbyi (Black African) Analyst: Kyle Southgate (Coloured) Physiotherapist: Megan Dutton (White)

Black

Black African

White

SA U/19 CWC SQUAD 2014

Wave of the future

Aiden Markram (c) Notherns Bradley Bopp EP Corbin Bosch Northerns Driaan Bruwer Northerns Kirwin Christoffels EP Justin Dill Boland Clyde Fortuin WP

Sibonelo Makhanya Border Greg Oldfield KZN Andile Phehlukwayo KZN Kagiso Rabada Gauteng Ngazibini Sigwili Border Jason Smith WP Yasseen Valli Gauteng

SA U/19 Squad of 14 to UAE

6 5

4

Making Opportunities Real

Black

Black African

White

WOMEN SQUAD MAKE UP

Black

Black African

White

WOMEN MATCHES PLAYED

26

7 6

1

25

4

Coach Education & Training

• The following materials have been developed:

– Coaching Curricula in DVD format Level 0 – Level 2 and distributed to all Members

– CSA administered advanced courses for Levels 3 & 4

• Long Term Participant Development Programme

From Grassroots to Proteas (SASCOC, SRSA & Lotto)

• 10’s of Performance and Training

• Quarterly publications on cricket coaching matters

• The number of qualified coaches countrywide:

• Level I since 2005 up to date

• Level II since 2005 up to date

• Level III since 2001 up to date

• Level IV since 1997 up to date

NO. COURSES NO. CANDIDATES MALES FEMALES FAILED PASSED TOTAL

379 6,028 5,319 709 1,030 4,998 4,998

NO. COURSES NO. CANDIDATES MALES FEMALES FAILED PASSED TOTAL

123 1,618 1,529 89 279 1,339 1,618

NO. CANDIDATES MALES FEMALES FAILED INCOMPLETE PASSED REFRESHERS TOTAL

279 271 8 33 83 161 2 279

NO. CANDIDATES MALES FEMALES FAILED INCOMPLETE PASSED REFRESHERS TOTAL

67 67 0 2 20 45 0 67

Efforts to Improve Performance

Existing Rural Academy at University of Fort Hare

Recently completed Indoor Facility – The CSA National

Centre of Excellence in Pretoria

25

KZNI Academy

KZN Academy

GW Academy

FS Academy

EP Academy

Border Academy

SWD Academy

WP Academy Boland

Academy

Northens

Academy

Easterns

Academy

Mpumalanga

Academy

Limpopo

Academy

Gauteng

Academy

NW

Academy Aims Semi Pro to

Franchise

Player

Support &

COE for

HUBS

Player

Support

with BA

Focus

Shop

window

FHU

UJ & Unisa

Performance :

The Affiliate & Regional Academies

26

Activities – Regional Academies

Centre of Excellence – GCB/UJ (Service to adjacent community clubs and schools)

UJ Club – Club Development

Regional Academy – UJ/CSA/GCB (Sport Science & Technical Service to broader community/country)

Educational services – Learnership Certificates, Diplomas & Degrees - UJ/CSA/UNISA/UFH

27

Aspire to achieve

holistic development

Development Challenges

28

Challenges (not exhaustive) Mitigation (not exhaustive)

• Poor conversation from mini cricket to hard ball cricket

• Inadequate facilities, community structures and focus on schools

• Unacceptable drop out for black African players throughout pipeline and poor retention of coaches at all levels

• Ineffective development structure for match officials

• Lack support to females in cricket

• Proper functioning of cricket ‘HUBS’

• Meet with SALGA on facilities issue; CSA/GCB/UJ-Unisa initiative;

Use CSA Transformation Fund for impactful change in disadvantaged areas

• Monitor “quality of opportunity” of all players and

Establish the Sunfoil Educational Trust (SED)

• Revise match officials educational and training programs

• Enhance female support at HP Centre

Development Challenges (cont.)

• Lack of school sports programmes in disadvantaged areas

• Disposable income or worsening income gaps

• Lack of service delivery

• Poor governance and administration

29

Challenges in Access & Opportunity

Mhluzi, Steve Tshwete

Municipality

Proposed new

facility in Malekutu

Wilton Mkwayi

Oval, Middledrift

Current oval in

Malekutu

30

High Performance & World Rankings

• Indoor Facility – R30m capex project funded by CSA [official launch on 13 March 2014]

• Regular reciprocal tours for SA Emerging Team and SA ‘A’ – with India and Australia

• Women National Team

– Top 20 Player Rankings:

• ODI Batting: Mignon du Preez (16), Trisha Chetty (19)

• ODI Bowling: Shibnam Ismail (12), Dane van Niekerk (14)

• T20 Batting: Mignon du Preez (12), Trisha Chetty (20)

• T20 Bowling: Marizanne Kapp (4), Shibnam Ismail (18)

• Proteas

– Top 10 Player Rankings:

• Test Bowlers: Vernon Philander (1), Dale Steyn (2)

• Test Batsmen: AB de Villiers (1), Hashim Amla (4), Graeme Smith (9)

• ODI Bowlers: Dale Steyn (2), Lonwabo Tsotsobe (7), Morne Morkel (8)

• ODI Batsmen: AB de Villiers (1), Hashim Amla (4)

• T20 Bowlers: Lonwabo Tsotsobe (6)

ODI – 6th T20 – 8th

Test 1st ODI 3rd

T20 3rd (or joint 2nd)

Proteas Squad and Performance

Black Black African White Black Black African White

Test 7 0 8 Test 40 0 59

P W D L

9 7 1 1

Black Black African White Black Black African White

ODI 10 2 12 ODI 107 31 181

P W L T

29 14 13 1

Black Black African White Black Black African White

T20 9 2 10 T20 33 8 47

P W L T

8 5 3 0

T20

ODI

TEST

Black

Black African

White

TEST SQUAD

Black

Black African

White

TEST MATCHES PLAYED

Black

Black African

White

ODI SQUAD

Black

Black African

White

ODI MATCHES PLAYED

Black

Black African

White

T20 MATCHES PLAYED

Black

Black African

White

T20 SQUAD

No 1 in the world

No 3 in the world

No 3 in the world (or joint 2nd) 32

Other

CSA will uphold good governance and accountability

We will be part of our communities and support social needs wherever we can

Promoting - Social Causes 33

Sport can unite the nation

like none other!

34

In Honour of Madiba

– Durban, Sun 8th Dec, SA v India

35

ICC Restructure

36

Proposals

• India, England and Australia have teamed up to develop what many view to be largely self interest proposals

• Far reaching and wide ranging - covering structure, governance, financial and competitions

• For example, Big 3 would have reserved seats on Exco and the reserved right to chair Board and committees (Exco and F&CA)

• Global outrage followed “leak” of “Big 3” plans

• Control of ICC and profits will go to “Big 3”

• Further concentration of wealth and power in few

• Undemocratic and unsustainable

Ramifications

The challenge – most countries are not financially sound and depend on India

for its revenue. India not afraid to use leverage to get its way

On 8 Feb 2014, CSA supported

modified revamp proposals

Questions ?