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Australia secures $50 million loan as safety cover for India Tests: Report

CA stood down more than 200 staff on 20 per cent pay until the end of June with chief executive Kevin Roberts fearing they might run out of money by August if the drastic cuts were not made

Topics
India vs Australia | Australia cricket team | Coronavirus

BS Web Team & agencies  |  New Delhi and Melbourne 

Virat Kohli looks to the umpire after he and opposing captain, Australia's Tim Paine came face to face after Kohli moved into Paine's path during play in the second cricket test between Australia and India in Perth | Photo: AP/PTI
Virat Kohli looks to the umpire after he and opposing captain, Australia's Tim Paine came face to face after Kohli moved into Paine's path during play in the second cricket test between Australia and India in Perth | File photo: AP/PTI

(CA) has secured a loan of $50 million, an upfront payment as part of a larger $200 million credit, which it has sought to cover the losses if India fail to tour the country later this year due to the Covid-19 pandemic.

According to a report published in 'The Sydney Morning Herald', stakeholders have been informed that the loan with the Commonwealth Bank is a "done deal".

However, it raised fresh questions about the governing body's decision to stand down 80 per cent of its staff last month due to financial crisis.

CA stood down more than 200 staff on 20 per cent pay until the end of June with chief executive Kevin Roberts fearing they might run out of money by August if the drastic cuts were not made.


The decision, which had saved CA about $3 million, is in question now with the governing body securing $50 million loan.

While Roberts, himself, is still earning 80 per cent of his salary, he is set to propose to state associations a 25 per cent reduction in grants from CA, the reports said.

CA is staring at losing a staggering 300 million Australian dollars (A$) in the wake of the pandemic and India's four-Test tour in December-January could provide relief to the struggling body.

Former Test all-rounder Shane Watson, who is the president of Australian Cricketers' Association Board, will convene a meeting early next week "to formalise a position on the state of the game's finances".

First Published: Mon, May 04 2020. 13:49 IST