It’s the news cricket fans across Australia have been waiting for: the ugly pay dispute which has marred the sport this year has reached its end, with Cricket Australia and the Australian Cricketers’ Association announcing an in-principle agreement this afternoon.
CA CEO James Sutherland and his ACA counterpart Alistair Nicholson have announced the completion of a Heads of Agreement document at a press conference at the MCG. That document will provide the framework for the next Memorandum of Understanding, which will span the next five years.
The agreement includes an updated form of revenue sharing which will see players take home 30 per cent of ‘agreed revenue’, which is expected to be somewhere in the vicinity of $500 million.
That revenue sharing agreement, the definition of which had threatened to derail talks this week despite earlier rumours of a resolution, includes all cricketers, female and male, domestic and international.
It marks the first time that Australia’s female cricketers have been included in the revenue sharing agreement since its introduction in the late 1990s.
The next MOU will see a significant investment in grassroots cricket. Sutherland said Cricket Australia will commit somewhere between $10 and $20 million more per year to the grassroots in comparison to the old deal, while Nicholson said the players’ expected contribution is somewhere between $25 and $30 million per year.
The agreement between the feuding parties means the 230 or so cricketers who have been unemployed since July 1 can now be contracted once again.
Players will be back paid for the past two months once the next MOU is signed.
The signing of the HOA allows the upcoming tour of Bangladesh and the following one to India later in the year to go ahead, and brings to an end the speculation that Australian cricket fans would be deprived of a home Ashes series, which is due to start in November.
It also means the dispute won’t be sent to a formal arbitration process, something Sutherland had called for if the two parties didn’t come to an agreement this week.
There are still a few minor hurdles to pass, notably a player vote in the next 24 hours on the proposal, although Nicholson said he expects that vote to “come back supportive”.
The inclusion of revenue sharing and back pay for the cricketers – both of which CA were previously set steadfastly against – is a major coup for the ACA and its players.
Main points of agreement between CA and the ACA
Player Payments Pool (PPP) (all male and female player payments and programs apart from Performance Pool):
– A modernised revenue sharing formula achieved by developing a Player Payments Pool to a dollar value based on external market benchmarks, internal equity and financial viability, and forecast cricket revenues.
PPP of $459m (would be the equivalent of 27.5% assuming ACR of $1.67bn).– Includes Player development program increased from $7m-14m
Performance Pool (PP):
– Continues for the Australian men’s team on similar terms to the last MOU and extended to include the Australian women’s team.Female player payments:
– Female player payments will increase from $7.5m to $55.2m.Adjustment ledger:
– If ACR exceeds $1.67bn, players receive 19% of the upside to $1.96bn ACR and grassroots cricket receives 8.5%. Above $1.96bn, male and female players receive 27.5%.– The Adjustment Ledger from 2012-17 will be paid out.
Additional grassroots funding:
– Up to $30m that would otherwise have gone to the PPP under the old model.
frank
Guest
Well we will see if these so called professional cricketers can live up to their salaries because before this dispute their so called performances was well below par ( definitely not worth what they were paid) How many of them would you class as great (none of them) Really are they worth watching
Bakkies
Guest
Drivel anon. They were going in to bat for the state players some who are on less than 50k a year.
ozinsa
Guest
If you're a female tennis player you can make a valid point that your play generates the same revenue even if you can't compete with men. If you're a female cricketer, the difference is stark and justifies the pay gap. It will change but until a woman's test match draws 250,000 people to the MCG then the gap will remain and justifiably so. What possible argument could you make to rebut this view?
Rats
Guest
This is the right time to play Test cricket against Bangladesh if you like to watch some competitive action. Aus can't take them lightly and it will be fun to watch. Glad the internal issues are resolved.
peter chrisp
Guest
All cashed up & ready to go
maverick
Roar Rookie
Finally it's over.It's time to play some cricket now.
anon
Roar Pro
I think the player's were a little greedy. These are multi-millionaire's after all. There are people in this world with real problems and rich people getting indignant about how money is distributed is not one of them. But great to see an ideological, antagonistic union-wrecker get his just deserts even if it took a bunch of pampered multi-millionaire's to make it happen. No sympathy for the players, but even less so for Cricket Australia.
johnnie
Guest
Heads need to roll at CA, probably Peever and Roberts - they have absolutely butchered its image in Australia, treated its employees like pieces of dispensable paper, made their sponsors and broadcasters uneasy, not to mention damaged relationships with foreign cricket boards. We are no better than the WICB at the moment. So much for the fake deadlines, hollow statements regarding back pay, and rhetoric. The players got absolutely everything they asked for... CA got next to nothing. Clowns.
bozo
Guest
Yes, cricket is very important for third world countries. First World against Third World, certainly gets me excited. One Aus player contract may buy their team
Brad
Guest
Thats what I mean, I bet its not a 50-50 split
davros
Guest
Baz in all seriousness ...in just about every dispute in all walks of life with an eba f w a etc etc management allways threatens no back pay ...and allways allways every time ..the back pay is payed ..its the emptiest hollowest threat ..it was cracking me up that people on here were discussing no back pay ...like the women of australia were discussing tony abbotts paid maternity leave plan ..u know like it was ever really going to happen !
davros
Guest
but Todd you said there would be no back pay ? :) bwahahahahahahah
Todd Shand
Guest
We watched the Sunset over the Castle on the Hill.
Todd Shand
Guest
The players got us at Cricket Australia administration. WE have had to accept that they get basically everything they want. India would have sued us if the players didn't tour. Well played Players. You Win. Now lets play some cricket.
Alex L
Roar Rookie
Small problem, that number is based on "someone who takes part in at least four sessions of a formal cricket program" and is taken straight out of a CA press release. The Ausplay report, conducted by a neutral party, found a much lower number -- especially participating in actual clubs where cricket is 6th for participation, barely ahead of basketball.
Connor Bennett
Editor
Spare a thought for Bangladesh who almost lost a high-profile home series through zero fault of their own that would have left plenty of money behind for their Cricket Association and players.
Alan
Guest
Aww Nudge, why do research when me and me mates at work agree on something? Seems like a bit of hard work to me. I will say though that when I was at school (showng my age I guess) we played cricket at every break, in season, and that doesn't happen now.
Nudge
Guest
What are you talking about Alex? Over 1.3 million people played organised cricket last year, which was an 8.5 per cent increase on the year before. Never has Australia had more people playing cricket than right now. Maybe do some research next time
Barry
Guest
Now we have to look at just who started this and have them brought to book. Peever and the board started this and then brought in James Sutherland to be the one to lose face. The public would like to know when this was put to the board and who voted in favour of causing the rift. Mark Taylor as an ex captain sat on the fence with comments like" both sides should compromise". So much for supporting those who followed in his footsteps. A new board please.
bozo
Guest
Great. Now the tour to Bangladesh can go ahead and I can't wait to hear the scores. The "players" are entitled to be paid like Movie stars because the income is derived from gambling popularity in India and cricket being a great "filler" for TV during the Australian summer, rather than them being athletes