Leicestershire in ECB cash talks

The Cricketer has seen the independent auditor’s report for Leicestershire’s accounts for the year ending September 30, 2018

Leicestershire are in talks with the ECB about alleviating their financial difficulties.

They are not the only county facing uncertainty, with many in the game fearing the new teams in The Hundred – the ECB’s new competition that starts next year – will eclipse them and become the future of the domestic game.

The Cricketer has seen the independent auditor’s report for Leicestershire’s accounts for the year ending September 30, 2018. The club declared a loss of £298,506 together with an operational cash outflow of £643,861, and added over £350,000 to its borrowings.

Leicestershire owe creditors £1.3m within the next year, and another £1.9m beyond that. They have reported debts of more than £3m, nearly £1.3m due in the current year, partly offset by approximately £600,000 of current assets. Against that the club does have a strong balance sheet with tangible assets of some £5.5m (largely Grace Road).

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The auditors state: “The club is in dialogue with the ECB to quantify and formalise the level of additional support needed... in order to manage their cashflow requirements for the foreseeable future. The requirement indicates the existence of a material uncertainty which may cast significant doubt about the club’s ability to continue as a going concern if the support is not provided.

“The directors, having considered the forecasted performance and cashflow of the club, have a reasonable expectation that, with the continued support of its funders the club will have adequate resources to continue in operational existence for the foreseeable future. Subsequent to the year end the club has been in detailed conversations with the ECB discussing the possibility of the ECB advancing further financial support.”

It is hoped that payments of £1.3m from the ECB for each of five years from 2020–2024 for agreeing to the Hundred will help. Leicestershire were invited for comment.

This story appeared in the April edition of The Cricketer, available now at all good newsagents - find out what's inside

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