St John's (Antigua): Rejecting media reports about bankruptcy, the West Indies Cricket Board (WICB) clarified that its financial position is not as bad as is being projected and claimed to have wiped out last year's 6.5 million dollar deficit for a "break even" position this year.
"The Board wishes to draw attention to its improved performance in the current financial year which is expected to show a break even position at year end September 30 compared with a loss of 6.5 million dollar in the prior year," the WICB said in a statement.
"The WICB wishes to clarify news items appearing on the condition of the Board's finances following the appearance of excerpts of the Consolidated Financial Statements for the year ended September 30 2005," the statement added referring to recent reports which said that the Board was in financial mess and was heavily banking on next year's World Cup to improve its monetary health.
WICB said the 22 million dollars being pumped into the event cannot be shown as an investment in the balance sheet, which in turn meant showing a deficit of 15 million dollars.
"The Board is currently investing in preparations for hosting Cricket World Cup 2007 which is the third largest global sporting event after FIFA's Football World Cup and the Olympic Games and on which 22 million dollars were invested as at September 30 2005.
"Due to the accounting treatment required by International Accounting Standards, these amounts cannot be reflected as an investment in the balance sheet. Without these amounts, the accumulated deficit in the Consolidated Accounts would reflect 15 million dollars which has been fairly constant over the past four years and which is not going to increase in the current financial year," the Board stated.
The WICB also revealed that it was taking steps to cut down on its expenditure and work out ways to increase its revenue. The board said it was planning an ODI series with India as part of the initiative.
"Steps have been taken by the WICB to reduce costs and to identify new lines of revenue including the Windies Superball Lottery game to be launched in August, the WICB Co-branded Credit Card, the ODI's to be held in conjunction with the BCCI and the licensing and merchandising programme promoted in connection with Cricket World Cup 2007," the Board added.
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