CSA Presentation to the Parliamentary Portfolio Committee

Tuesday, 19 May 2015, Cape Town

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Chris Nenzani – President

Dr Peter Cyster - Vice President

Haroon Lorgat – Chief Executive

Max Jordaan – Transformation Manager

The CSA Delegation

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The Brief

To report on:

1. Transformation

2. Governance and related issues

3. 2013/14 Annual Report (includes financial results)

4. Finance

5. Results and Performances

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Introduction

• CSA is currently in excellent shape!

– Governance, Finance, Development and progress with Transformation initiatives

– Currently No. 1 in Test and No.4 in ODI cricket; Women No.2 in ICC ODI World Challenge and No. 3 at the last ICC World T20 tournament; and our U/19s are the current World Champions. (next event early 2016)

– CSA has concluded its Future Tours Programme through to 2023, building certainty in scheduling

– CSA recently launched the Africa Cup – T20 Competition for 13 Affiliates and 3 African Countries

• Stakeholders openly expressing their confidence in CSA and sponsors are growing their involvement. CSA has renewed all existing properties and has also attracted new partners (Samsung, Audi, Sony Six)

• Apart from the one mischievous CWC selection issue, media coverage has been grudgingly positive

• Transformation remains paramount in the general business of cricket and we acknowledge the progress still required to improve representivity, esp. at National level

• A new model for cricket in Schools, alongside our RPC & Hubs programme, is currently being developed in collaboration with SRSA & DBE with roll out planned for September 2015

• Proteas delivered their best ever performances at the 2015 Cricket World Cup, alongside a new and authentic #ProteaFire campaign. All the Protea players now appreciate their broader responsibilities in our country.

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TRANSFORMATION

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Transforming from bottom.... up

RPCs, Hubs, and - targets disadvantaged communities

Schools teams - 8 players in squad of 15

University teams - 3 black players in playing XI

Semi-professional - 6 black players

Franchise - 6 black players

National teams - 50% target, but merit selection prevails

Specific focus on increasing black African players

Note: we have significant concerns with future of Schools cricket

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1

New initiative - Transforming Cricket in Schools

• Stats SA

• Mapping of footprint

• Socio-economic mapping

• CSA & GCB

• Link Schools with Hubs, Clubs

• Provide Coach Education

• DBE & GDE

• Link with Teacher Centres – Identify Educators as coaches

• SRSA

• Provincial Enablers

Facilities & Budgetary

Support

Educational &

Institutional Support

Statistical & Mapping Support

Programmes & Talent ID

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RPC

HUB

school

school

school

School

School

School

School

School

Area schools matches at HUB level

RPC to play in the Top schools league of the Affiliate at all levels HUBS feed into the RPC programme

HUB

school

school

school

School

School

School

School

School

HUB

school

sschooloo

school

School

School

School

School

School

Community based programmesPlay more matchesEncourage partnerships

RPC

school

school

school

School

School

School

School

School

Alongside our RPC & HUBS Model which has been

shared with SRSA & DBE

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Transformation and Development Progress

What’s changed to accelerate our progress?

Activity Based funding with incentives and sanctions now in place

Refocused Regional Performance Centres (RPCs) & Hubs, e.g. Langa centre managed by Thami Tsolekile

Regional academies –UFH, UJ/Unisa to be part of the RPC & Hubs programme

Scholarship Programmes to aid development and transformation – Momentum M2E, Sunfoil Trust

Aggressive Player Loan system to support transformation goals

Varsity Cup (inaugural in Feb 2015)

49%

30%

21%

2014

White Black Black African

49%

32%

19%

2013

White Black Black African

Franchise Professional Contracts

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Progress at Malekutu Rural Academy

• Funding partners in place

• Memorandum of Agreement with Mpumalanga Department of Sport & Recreation in place

– This deals with upgrade of existing disused facility for this Academy

• Integrated in the Mpumalanga Talent Identification Programme

• Graders moved in.

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1

Programmes at UFH Rural Academy

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Women’s Cricket – greater investment and focus

• Entire national squad now contracted on full time basis

• Supported by CSA National Academy Programmes, inclusive of education and life skills

• Fulltime coach, staff and team support now in place

• More international matches

• Feeder system developed from school level to emerging team

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CSA High Performance Squad (12 players)

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Black African Generic Black White

Temba Bavuma

Eddie Leie

Mangaliso Mosehle

Mthokozisi Shezi

Khaya Zondo

Farhaan Behardien

Beuren Hendricks

Reeza Hendricks

Dane Piedt

Simon Harmer

Rilee Roussouw

Stiaan van Zyl

Note: CSA has a Strategic Transformation Fund in place to support worthy

transformation initiatives across the country

Impediments to Accelerated Transformation

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• Unemployment rate

• High Poverty headcount

• Low levels of facilities and active sport in schools

• Amended National Norms and Standards for School Funding (ANNSSF) provides that 80:20 in Quintile 1 & 2 may apply funds on matters other than personnel costs

• High costs of maintenance of existing facilities

• High costs for transportation

GOVERNANCE & RELATED ISSUES

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CSA Overview 2014 and Governance

CSA has completed its governance overhaul and now enjoys a good governance culture, which is producing returns

Past AGM successfully held on 13 September 2014 – 2013/14 Integrated Annual Report presented, reflecting good governance in practice

The CSA governance model and Memorandum of Incorporation (MOI) has since been replicated in all the Affiliate & Associate Members (alignment process near completion)

Independent Directors have made a major and positive contribution to governance

Measurement and Accountability is part of the new governance culture

Board and committees undertake annual self assessments

A restored reputation and image, and renewed public confidence in administration

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CSA Overview 2014 and Governance (cont.)

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Financial Sustainability has been a key focus in the past 12 months. The economics of cricket continues to be re-engineered

A new Operating Model (based on Activity Based Funding) has been implemented

Revamped plans for Academies (Regional Performance Centres and Hubs) have been rolled out

Superb results and performances on the field of play

The Transformation Indaba resolutions (Sept 2013) remains work-in-progress with implementation tracked and regularly reported on. Key focus areas, include:o Re-engineering the economics of cricket through the new Operating model

o Align Member governance and strategies with CSA

o Geo-political alignment at Member level

o Grassroots cricket development

o Greater Africanisation of cricket

o Raising the profile of women’s cricket

o Celebrating and recording our history

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Geopolitical Boundaries

• This issue is progressing and CSA seems ahead of SASCOC and other Federations.

• CSA Board has appointed a Task Team (12 September 2014) and the Terms of Reference to proceed with the geopolitical demarcation was approved by the CSA Board.

• SASCOC updated on 22 April 2015

• CSA would welcome assistance from SASCOC with research and best practice model as promised (Note: SASCOC also indicated funding the alignment process to assist with the creation of new structures)

Strategic Challenges ...some examples

Challenges (not exhaustive)

• Schools cricket. (Currently in discussion with SRSA & DBE)

• SABC, as the public broadcaster, has not fully supported cricket in past few years

• Financial sustainability of Provincial Affiliates & Franchises

• Mooted regulatory changes would impact sponsorships i.e. proposed bans on Fast Food and alcohol advertising

• Seek to develop strategic relationships to address cricket in schools

• SABC has signed a 3-year deal and we need to build on this newf relationship.

• New Operating model and CSA requirement for all Affiliates to breakeven

• Monitor and make appropriate submissions to relevant authorities

Mitigation steps (not exhaustive)

See CSA Corporate Scorecard for full list of strategic challenges and mitigating steps

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Strategic Challenges (cont.)

Challenges (not exhaustive)

• Maintaining local club cricket facilities. Little or no municipal support

• Lack of financial support from central and local governments for development and transformation imperatives

• Sustaining international class stadiums. Implementing the new Safety Act will be costly

• Engage with local govt. and other relevant role players

• Engage with Sports Ministry and other relevant departments.

• Revisiting the stadia model and already agreed to implement a grading system that will downsize some stadia

Mitigation steps (not exhaustive)

See CSA Corporate Scorecard for full list of strategic challenges and mitigating steps

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FINANCE MATTERS

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2013/14 Financial Results

Audited results 2013/2014 2012/2013 Change

Rm Rm Rm

Revenue 810 607 520 985 298 622

Expenses -634 092 -700 495 66 403

Net Profit (loss) 199 410 -133 275 332 685

Cash 383 721 298 671 85 050

Retained earnings 599 421 400 011 199 410

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Excellent financial results, notwithstanding the curtailed tour by India

CSA operates in 4-year cycles and needs to retain large reserves and cash for the lean years experienced within each cycle

**Note:

Impressive

results will

be reported

in respect of

2014/15

4-Year Aggregate Financial view

Forecast 2015/2018

Actual 2011/2014

Rm Rm

Revenue 2 817 2 506

Expenses (2 652) (2 181)

Aggregate net surplus 165 325

Reserves 764 599

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Depending on the tour schedules and ICC distributions, some years in the cycle would experience losses while other years would make a surplus

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ICC -

The Proposed ICC Distribution Model for 2015 -2023

2014 Expense breakdown

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Central costs 9%

Amateur cricket 25%

Professional cricket 54%

National Teams9%

Coach hire

3%

Cricket Development Funding 2014/15

6%

8%

4%

5%

15%

15%2%1%

37%

5%

2%

Umpires Scorers Corrective measures

Presidential Plan salaries Hubs

Club cricket

Youth cricketAdministration costs

Cricket centres of Excellence

KFC Mini cricket

Development Women’s cricket

Affiliate Member Funding (Direct grants)

2014/15 = R 87m (+20%)

2013/14 = R 72m

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2014/15 CSA Indirect Funding – Talent Development

Programmes/Activities Cost

Youth & Other Weeks R22.0 m

Fort Hare Project R 2.8 m

Women’s Cricket R 7.0 m

Talent Acceleration Programme & SFS R 7.7 m

Coach Education R 1.8 m

Cricket Operations for Youth & Other weeks R 6.0 m

TOTAL R47.3 Million

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Direct funding 87.0mIndirect funding 47.3mTotal development funding 134.3m per annum

Current Sponsors

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With high market confidence in CSA, we are enjoying excellent sponsor relations and will continue to explore new potential partners

RESULTS & PERFORMANCE

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RESULTS over the past 12 months

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Women

Men

P W L D NR % win

ODI 11 7 2 0 2 64%

T20 22 13 9 0 0 59%

P W L D NR % win

Test 10 5 3 2 0 50%

ODI 25 18 5 0 2 72%

T20 11 6 5 0 0 55%

Baby Proteas won the ICC World Cup in Feb 2014 for the first time ever

and are thus the current U/19 World Champions

Performance as at 10 April 2015

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• State of the art Indoor Facility (R30m capex project funded by CSA) launched on 13 March’14

• Regular reciprocal international tours arranged for Women, SA Emerging and SA ‘A’ teams

• Women National Team

– Top 20 Player Rankings:

• ODI Batting: Mignon du Preez (15), Dane van Niekerk (20)

• ODI Bowling: Shabnim Ismail (8), Dane van Niekerk (9) Marizanne Kapp (16)

• T20 Batting: Mignon du Preez (11), Dane van Niekekerk (19), Lizelle Lee (20)

• T20 Bowling: Shabnim Ismail (9), Dane van Niekerk (12)

• Proteas

– Top 10 Player Rankings:

• Test Bowlers: Dale Steyn (1) , Vernon Philander (7)

• Test Batsmen: AB de Villiers (2), Hashim Amla (3)

• ODI Bowlers: Imran Tahir (2), Dale Steyn (3), Morne Morkel (10)

• ODI Batsmen: AB de Villiers (1), Hashim Amla (3)

• T20 Batsmen: Faf du Plessis (4)

• T20 Bowlers: Imran Tahir (6)

ODI – 2nd

T20 – 3rd

Test - 1st

ODI - 4th

T20 – 7th

APPENDICES

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UNIVERSITY OF FORT HARE (Current)

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Surname Name Student No. Degree Cell No 1. Payi Phumelelo New Student BA Education

2. Draai Bongolethu New Student BA Communication

3. Langa Babalo New Student

4. Dithole Tsepang 201213929 B Comm Eco & Bus 0748332717

5. Modiba Matome 201213927 B Comm Eco & Bus 0785498420

6. Kilani Jongile MSC College HR 0849179112

7. Bosch Clayton MSC College HR 0711442664

8. Calana Mkhululi MSC College HR 072 647 7000

9. Mbulelo Budaza MSC College Office Admin. 0733197628

10. Mnyaka Thandolwethu MSC College IT 079666695

11. Mungro Kerwin MSC College HR 0711442664

12. Loyiso Mdashe MSC College HR 0737136326

13. Thapelo Letsholo MSC College Public Relations 0844117271

14. Enkosi Nonyukela MSC College IT 0827114730

15. Kirchoff Maryka UFH B Ed 0765810419

16. Khaka Ayabonga UFH HMS 0715779757

17. Mnyiki Akhona UFH B Ed 0790211315

18.

UNIVERSITY OF FORT HARE (Alumni)

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Student Cricket career Academic career

Vuyisa Makaphela Warriors 3 yr Diploma MSC

Jerry Nqolo Border Final yr student FH

Luthando Mnyanada SWD 3 yr Diploma MSC

Gionne Koopman Border FH Graduate

Cebo Tsiki Boland Final yr student FH

Lonwabo Rodolo SWD Cape College

Ayavuyo Myoli Titans Final yr student FH

Somila Seybokwe Border Final yr student FH

Thandolwethu Mnyaka Warriors 3rd yr MSC

Siphamandla Dapo Eastern Cricket 3 yr Diploma MSC

Mbulelo Budaza Border 2nd yr MSC

Tsepang Dithole KZN Inland Final Yr BCom UFH

Mkululi Calana Border Squad Final yr Dip HR MSC

Clayton Bosch Border Squad Final yr Dip HR MSC

Nandile Tyali CSA HMS Hons. UFH

Shannon Musto Border Cricket HMS UFH

Recognising our History – Kimberley, Friday 10th October 2014

CSA CE Haroon Lorgat with former NSC General Secretary Krish Naidoo & Thomas Mongwe who led the protest march of 26 January 1990 against the Rebel English Tour led by Mike Gatting

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Other issues1. Blind Cricket World Cup

• Mischief media reports caused regrettable harm

The Way Forward

• Clarify relationship, status of membership and obligations of each party

• Bottom up representation

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2. CWC selection issue

• Negative publicity

• Reason of CSA position

• Leadership

• Funding commitment

• Global invitation

• Educate and manage better

The Way Forward

Questions &

Thank You

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