Queensland Cricket in Financial Crisis?

Brisbane's Courier Mail newspaper has reported that the auditor brought in to check Queensland Cricket's books has uncovered debts of more than $9 million and a loss of $900,000 in the past financial year.

As a result there is "significant doubt" that Queensland Cricket can go on.

Daniel Knowles of the Courier Mail reported that in the previous financial year the Association was $400,000 in the red and that the auditor found there was "material uncertainty which may cast significant doubt about the company's ability to continue as a going concern" based on losses and debt.

The Association's annual report says it has "projections in place over the next five years showing positive growth". But the report for the year before carried the same assurances.

The biggest chunk of debt is $6 million borrowed from Cricket Australia to buy two buildings in Albion opposite its Allan Border Field headquarters in 2008.

The association used the money to pay $4.2 million for the 20 Bogan Street, Albion, property in December 2008.

Two years earlier, the building and land sold for $1.8 million.

It also paid $1.5 million for neighbouring 11 Immarna Street, where it plans to expand its Centre of Excellence.

Queensland Cricket Chief Executive Graham Dixon said there was no danger of the association folding, that it had $2 million in the bank and the $6 million property purchase was an investment backed by Cricket Australia to expand the Centre of Excellence. Dixon said a final agreement with Cricket Australia was "imminent" and reportedly dismissed the auditor's note as a "technicality" which had been explained to members in August.

Dxion added "the 'going concern' note was a technicality relating to the temporary loss of a finance facility with Queensland Cricket's bankers that was a result of the financing arrangements made with Cricket Australia in regard to the purchase of the Immarna St and Bogan St properties.

"This finance arrangement was agreed to by the board of directors with the knowledge that future financial projections for Queensland Cricket were very positive. For commercial reasons ... the Cricket Australia loan was extended until final agreement was reached on the extent and scope of this development, which is imminent."

According to the Courier Mail, a Cricket Australia spokesman said he did not have any concerns about Queensland Cricket's finances.

Queensland Cricket is also trying to secure a new lease for the Gabba, with the current agreement expiring in March.

A spokesman for Stadiums Queensland, which inherited the lease from the former Brisbane Cricket Ground Trust, said negotiations were under way.

The Queensland Cricketers' Club is completely separate from Queensland Cricket, having its own lease with Stadiums Queensland, management and ticketing.

Crowds for the domestic four-day game have evaporated and the Bulls this week missed out on the Twenty20 final.

Image: The Gabba, home of Queensland Cricket.

18th February 2009 - CRICKET AUSTRALIA SPONSORSHIP SAFE DESPITE TELCO MERGER