ACB, players enter into new age contracts
The Australian Cricket Board (ACB) and the Australian Cricketers' Association (ACA) today announced that they had signed a new four-year Memorandum of Understanding (MOU) that will result in total player payments receiving a multi-million dollar boost over the life of the agreement and allow the ACB to substantially increase distributions to State Associations.
The agreement will see:
a) The first one million dollar cricketer within three years;
b) Members of the Australian team become the highest paid cricketers in the world and the highest paid individuals within a sporting team in Australia;
c) The ACB increase distributions to State Associations by a projected 72 per cent by the end of the agreement, from the $57 million dollars in distributions over the last four years.
d) Significant increases in payments to State contracted players.
ACB Chief Executive, Malcolm Speed, said that the strong financial health of the game allowed it to make these substantial increases to the level of player payments and state distributions.
"The whole agreement is based on the capacity of the game to pay," said Mr Speed.
"Over the past three years, the finances that underpin the game have grown considerably and this will continue through the long term commercial agreements, particular in the area of overseas media rights and sponsorship, that the ACB has been able to negotiate."
ACA Chief Executive, Tim May, said that the pay increases were part of an overall program from the ACB and the ACA to ensure that cricket remains a career of choice for Australian athletes
"While there are significant increases in payments to Australian players, these increases also flow down to State contracted cricketers. In addition, the MOU introduces rookie contracts for players under 23 years of age and in total it allows cricket to recruit, retain and appropriately reward players at all stages of their development," said Mr May.
The new MOU will also see:
a) Increased recognition of the importance of the off-field issues associated with being an elite cricketer, with the introduction of a family assistance package for Australian players,
b) The introduction of a retirement benefit account for state and ACB contracted players; the continued funding of the career and welfare program; and
c) Protection for Australian cricket's interests through the negotiated limitations on player and ACA commercial activities; and a revised provisions for players playing overseas.
Under the formula agreed in the MOU, the gross cricket related income of the ACB and State Associations, known as Australian Cricket Revenue (ACR) will continue to be used as the basis on which to calculate the total pool to be paid to players.
"Since 1996-'97 ACR has grown from $54 million to $78 million in the last financial year. In the life of this agreement, we expect this figure to peak at $109 million in 2003/4 with a total ACR of $400 million dollars over the four years," said Mr Speed.
"The financial strength that underpins Australian cricket has allowed the ACB and the ACA to agree on an appropriate payment structure for the players while ensuring that the State Associations are also able to continue to invest in the game."
Mr May said that the new agreement was a win for both organisations with both the peak cricket associations and the players able to share in the financial success of the game.
"Clearly, the principle underpinning the agreement is that the players and the ACB are in partnership in the business of Australian cricket. This agreement allows both the ACB and the players to share in the financial benefits that come from having a very successful operation both on and off the field," said Mr May.
