SLC endure mixed fortunes in finances during 2023
Sri Lanka Cricket (SLC) has long been the nation’s sporting pride, but its financial health tells a story of highs and lows, much like the fortunes of the teams it governs. The 2023 financial year was no exception, as the organisation recorded a whopping Rs 12.17 billion in revenue. However, this apparent success came with a significant caveat—a net deficit of Rs 2.11 billion, according to the financial statements released by SLC.
While SLC’s operational expenditure stood at Rs 12.07 billion, the organisation managed to eke out a modest operational surplus of Rs 90 million. Yet, this surplus was swiftly eroded by exchange losses, depreciation, and other financial costs, ultimately pushing SLC’s bottom line into the red.
This marks a stark contrast from the previous year. In 2022, SLC enjoyed a remarkable after-tax profit of Rs 6.34 billion, buoyed primarily by a sharp appreciation of the US dollar, which delivered an exchange rate gain of Rs 6.05 billion. However, 2023 painted a different picture. With the dollar dipping to Rs 323.00 by the year’s end from Rs 366.71 at the start of the year, SLC incurred an exchange loss of Rs 1.68 billion, a substantial hit that largely contributed to its financial deficit.
Despite these challenges, SLC’s revenue for the year remained robust at Rs 12.17 billion. The bulk of this income is attributed to dollar payments from the International Cricket Council (ICC) through annual distributions, television rights sales, and team sponsorships. Notably, the ICC’s contribution to SLC rose by Rs 1 billion compared to the previous year, reaching Rs 5.85 billion in 2023.
Beyond ICC contributions, SLC also generated significant revenue from various sources. International tours brought in Rs 1.28 billion, while the Asian Cricket Council (ACC) development grant added Rs 1.39 billion to the coffers. International television rights accounted for Rs 365 million, and women’s cricket financing from the ICC contributed Rs 23 million.
One area where revenue dipped was player releases to the Indian Premier League (IPL). The IPL paid SLC just Rs 21.9 million in 2023, a sharp decline from the Rs 63 million received in the previous year.
Nevertheless, SLC managed to rake in Rs 831 million from the fourth edition of the Lanka Premier League, a testament to the growing appeal of the domestic T20 tournament. Additionally, national team sponsorships and other sponsorships collectively contributed Rs 899 million, further bolstering SLC’s income.
On the expenditure side, SLC’s biggest outlay was on international cricket. This includes expenses related to international tours, the national team, the ‘A’ team, junior team tours, and the national women’s team. These expenditures totaled Rs 4.28 billion, reflecting a slight increase from the previous year’s Rs 4.25 billion. Notably, SLC invested over Rs 345 million in women’s cricket, signaling a commitment to boosting the women’s game.
Domestic cricket also saw a significant financial commitment, with SLC spending Rs 2.83 billion in 2023. This figure includes Rs 2.08 billion allocated for conducting local tournaments, marking a substantial increase from the Rs 1.63 billion spent on domestic cricket the previous year.
Cricket development work accounted for an additional Rs 1.21 billion in expenditure. This includes substantial investments in cricket infrastructure development and donations of cricket and ground equipment, highlighting SLC’s focus on long-term growth.
However, not all expenditures were directly related to the game. Administrative and other expenses amounted to a hefty Rs 3.58 billion. This figure includes staff costs of Rs 1.43 billion and administration expenses of Rs 1.646 billion. Additionally, SLC spent Rs 183 million on donations for various charity projects, reflecting its broader social responsibilities.
One of the most striking figures in SLC’s financial statement is the massive increase in legal expenses. The Board spent Rs 319 million on legal fees, representing a staggering 206 percent increase compared to the Rs 104 million spent in the previous financial year. The financial statements reveal that SLC was embroiled in 54 litigations including a number of cases against former Sports Minister Roshan Ranasinghe and various media institutions, during the year, which significantly drove up costs.
The financial statement also reveals that SLC lost USD 2.46mn of direct income after the International Cricket Council (ICC) shifted the U1-9 World Cup from Sri Lanka to South Africa.
The 16-team tournament was originally scheduled from January 13 to February 4 across five venues in Colombo. But the escalation of hostilities between then Sports Minister Roshan Ranasinghe and Sri Lanka Cricket (SLC) forced an ICC suspension on SLC. This amount to be received as host rights fee and SLC were to receive a further US$ 14.91mn to conduct the tournament.