All codes will look at risk management: CA

Scott Bailey
Earl Eddings says Cricket Australia will have to review their risk management after coronavirus

Cricket Australia chairman Earl Eddings predicts his sport will be one of many to reconsider their risk management and cash reserves out of the coronavirus.

CA made the tough decision to make 40 jobs redundant on Wednesday, as part of $40 million in cost cuts just a day after Kevin Roberts resigned as chief executive.

National teams and domestic competitions are relatively unchanged, but it's understood batting coach Graeme Hick is among those to go.

While other sporting codes have been affected on the field, cricket is arguably the more susceptible to any threat dependent on timing.

There can be up to a $100 million swing in revenue from summer to summer dependent on the schedule, with seasons involving India and England easily the most lucrative in the four-year cycle.

The anticipated postponement of the Twenty20 World Cup in October and November could cost CA around $20 million, while any impact on crowds during the summer would also hurt.

"Across all organisations, the risk management scene in the past three months is critical," Eddings said.

"Who would have predicted a global pandemic like this would hit straight away?

"It will certainly make all organisations go back and look at their assumptions about risk management, including reserves policies.

"I think over time we're going to have to reassess that as all good organisations do."

Eddings said the cuts looked like they would be much worse months ago, before further savings and Australia's advancement out of the virus and to a full Test summer.

Among the most significant changes fans will note will be a change in pathways and development, with more responsibility put back on the states.

As part of cost-saving measures, there will be no CA XI matches or Australia A tours for the next year, while the Futures League has also been scrapped.

Eddings has insisted there is still a place for the National Cricket Centre in Brisbane, and said he would work with the states on how it can be best used.

States had long wanted more power in the development of players, with CA stating the changes will save costs and remove double ups at state and national levels.

However, they come at a time where funding is set to be slashed by 25 per cent to the states, as part of a proposal both NSW and Queensland are yet to agree to.

"We'll continue talking with the states and territories about that," Eddings said when asked if he would consider reducing the cuts.

"There is still a lot of uncertainty.

"Today does show we have some flexibility in our plan to be able to evolve that plan in time.

"We will continue to talk to the state's and territories and the Australian Cricketers' Association over what that plan may look like."