WICB Losses Reach US$7.5 Million

At the meeting of the Directors of the WICB on May 24 our auditors presented draft financial statements for the year ending September 2001 that show a loss of US$7.5 m. This follows a loss of US$5.4 m for the year ending September 2000. The losses experienced over the last two to three years are of grave concern to me and to this board.

The main reason for the loss in 2001 was that the Board decided inspite of decreased revenues to follow through with its commitment to finance the development component of the strategic plan including the expansion of the Red Stripe Bowl and Busta Cup.

Key factors contributing to decreased revenues were commitments under the ICC 10 year tour programme and the unfavourable fee structure, losses from home tournaments and the South Africa series television production costs that could not be offset by television rights as well as the losses from the disposal of investments made in 2000.

I took office in July 2001 and since then I have placed a high priority on setting the organization and by extension West Indies cricket on a firm financial footing.

The Board is committed to reversing this trend of losses and has approved a break-even budget for this financial year. In order to finance the medium term cash-flow shortfall we have obtained a loan from First Citizens Trust and Merchant Bank based in Trinidad and Tobago. We also expect to earn substantial revenues this year from television rights for the India tour that will help us achieve a break-even position.

To this end the Finance committee will be amalgamated with the Executive to allow for closer linkages between financial and operational matters. The Board will also be making greater efforts to encourage timely reporting from member associations that will allow us to get a clear picture of the finances in time to make adjustments operationally if necessary.

A draft of the financial procedures manual has been prepared and a new Chief Financial Officer, Mr Barry Thomas has taken office. Ensuring adherence to strict financial procedures and budgetary limits will be a priority for the CFO and the entire staff of the headquarters.