Chief government Andrew Cornish says “there is no hiding away” from Middlesex’s financial difficulties, after acknowledging that the membership would possibly require an ECB bail-out after racking up a lack of £952,000 of their maximum just lately printed accounts.
In an open letter to Middlesex’s participants, Cornish stated {that a} fresh document within the Daily Telegraph have been an “accurate depiction” of the club’s financial status, following a success to their earnings from the Covid pandemic in 2020-21, plus a historical pensions miscalculation that has price the membership an extra £500,000 to rectify.
However, Cornish additionally insisted that none of this used to be “new news”, and that with Middlesex forecast to go back a benefit in 2023, any involvement of the ECB within the club’s control used to be simply a case of placing contingency plans in position, within the match of a “rainy day”. At provide the club’s reserves had been diminished to £179,000, from greater than £2 million prior to the pandemic.
“Losses have been significant, the accounts are filed publicly for all to see, as well as being sent to all members and discussed at the AGM, so there is no hiding away from the fact that the last two years have been an extremely challenging time for Middlesex Cricket,” Cornish wrote.
“As I have said, none of this is news to Middlesex members … we have made every effort to ensure that this has been conveyed to you in as transparent and open manner as possible.”
Unlike the opposite 17 top quality counties, Middlesex is within the distinctive place of renting its house floor, Lord’s, from MCC – a state of affairs that has each exacerbated their present publicity, for the reason that their sole earnings flow is from county cricket actions, but in addition guarantees that they’re debt-free, with their landlords as an example footing the invoice for closing yr’s £53 million redevelopment of the Compton and Edrich Stands.
For that reason why, alternatively, the source of revenue that Middlesex receives from the ECB makes up greater than 70 p.c in their total determine – £4.733 million out of £6.589 million, in accordance to their newest accounts, together with their long-standing county partnership settlement, plus an extra £1.3 million in go back for agreeing to the staging of the Hundred.
“We are much more reliant on the revenue that the ECB provides through its broadcast deals than our counterparts at other venues,” Cornish added. “This difference comes about due to us not owning our own ground and therefore being unable to stage profitable non-cricket events, which some might view as a blessing.
“With this sort of vested passion in protective the long run wellbeing of the English sport, and the counties which can be the stakeholders in it, it is just proper that open and truthful discussions are being had between each organisations to make certain that there may be an working out of our place.”
In 2016, Durham was punished for receiving a £3.8 million ECB bail-out, with relegation from Division One, a 48-point deduction for the following season, and a loss of Test status. However, the new ECB leadership of Richard Gould and Richard Thompson, formerly of Surrey, are unlikely to take such a hard line as they seek to make the case that their regime is more supportive of the counties than their forebears.
“We are thankful for the help and lend a hand the ECB are offering to the Club all through this procedure and will proceed to liaise with them intently in this topic transferring forwards,” Cornish added. “They are confident and inspired that the financial place of the Club at this level is way more encouraging than up to now.
“However, whilst unlike many other counties we have no debt, we also have minimal assets and that leaves our cashflow potentially exposed to the seasonality of cricket, hence our need as responsible Directors to ensure the Club has contingency plans in the event of a ‘rainy day’ – if you’ll forgive the pun.”