Reduced profit for cricket council

Press, 28 September 1988, Page 72

Reduced profit for cricket council

A profit of $36,432 will be reported to the New Zealand Cricket Council’s annual meeting in Christchurch on Friday. That represents a considerable reduction in revenue from the $148,943 surplus the previous year. Only a healthy profit from the World Cup tournament in India and Pakistan prevented the N.Z.C.C. suffering a big loss because of the sharemarket crash last October. The World Cup money boosted tour profits to $459,354, more than eight times the 1987 figure of $55,385. But a 1987 gain on realised investments of over $450,000 was transformed into a $175,000 loss. Administration and coaching costs also increased markedly, though they were more than offset by a rise of $331,000 in sponsorship. The financial result was "not entirely unexpected,” according to the retiring chairman, Bob Vance.

. “As a result of the sharemarket crash the days of significant realised investment gains disappeared overnight. Instead, the N.Z.C.C. has sustained large investment losses and been forced to revalue investments down to market value, which had fallen below cost as at balance date,” said Mr Vance in his annual report. “The final position would have been much worse but for the World Cup in India and Pakistan,” said Mr Vance, who welcomed the 61 per cent increase in sponsorship income. Expanding the administrative staff and the expense incurred by the national development squad and spin bowling clinic were additional costs. “There will be no World Cup windfall in 1988-89, nor can we anticipate significant investment income. Fortunately the N.Z.C.C. had adequate reserves, but our cash flow will be adversely affected and a tight rein on expenditure will be necessary throughout the coming year,” reported Mr Vance.