PCB projects Rs557m loss despite boost in revenues

Crickets governing body expects 60% increase in expenses.

KARACHI:

The Pakistan Cricket Board has projected a loss of Rs557 million in the coming season in spite of healthy boost in earnings. According to documents available with The Express Tribune the Board hopes to earn Rs2.8 billion from home and international tours as well as domestic tournaments and non-cricketing income but the heavy cost of not being able to play international cricket at home will eat away into this.

The Pakistan Cricket Board (PCB) hopes to spend Rs3.18 billion in the coming season of which Rs2.1 billion is projected cricketing expenditure, up from Rs1.24 billion spent on cricket last year.

The PCB expects to spend more on tours, both local and international as well as on domestic tournaments. Tours outside Pakistan are expected to cost the PCB Rs246m compared to Rs215m in 2012-13 while local tours (which are also played aboard on a neutral venue) will see a tremendous jump from Rs145.9 million to Rs857 million.

The Acting PCB Chairman Najam Sethi had vowed to cut down on expenses but one of the key points in non-cricketing expenditure is the raise in administrative expenses which are kept at Rs758.67 million while last year Rs617.87m were spent by the Zaka Ashraf-led PCB, which was planning to spend 881.34million.



All in all, despite a hefty projected increase in earnings, the massive cost of having to play home series at neutral venues is coming back to bite the PCB hard and the board projects a loss of Rs557 million after having registered a profit of Rs236 million in the previous season.

Pakistan have not been able to play at home and Rs857.17m will be invested on the home series which would have been much lesser had Pakistan been playing at home. The rest of the 33% expected expenses of Rs1051.03m is related to non-cricketing expenditure which include administrative expenses (24%), depreciation and amortization (4%), financial charges and contingencies (5%).

PCB hoping to earn Rs2.8 billion

Meanwhile, the board is expecting improvement in income upto Rs2.81 billion as compared to previous year’s income of Rs2.33 billion.

The rest of the 14% income will be generated through non-cricketing angles. This year’s budget has seen an improvement in sponsorships and advertisement as the PCB hopes to generate Rs252.64 million compare to last year’s meagre Rs49.22 million.

Published in The Express Tribune, August 31^st, 2013.

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