Durham County Cricket Club match success off field

Jun 29 2010 by Peter McCusker, The Journal

THE off-the-field performance at Durham County Cricket Club has matched its achievements on the pitch with revenues up 30% and the club returning to the black with pre-tax profits of almost £200,000.

The Chester-le-Street-based county cricket club achieved a turnover of £7m last year up from £5.5m in the previous year and it returned to profit after losing almost £1m in 2008.

This change in fortunes has been partly attributed to the boost of hosting a five-day Test Match between England and the West Indies last May which helped bring in an extra £1m in revenues.

The improved performance off the field comes as the club won the LV County Championship on the pitch for the second season running.

During the year in question the club secured a £1.25m loan from taxpayers through Durham County Council which is being used to help fund spectator facilities and to be repaid by 2025.

David Harker, chief executive of the club and the Journal’s North East Business Executive of the Year 2009, said: “We have been through a challenging period but we have maintained our momentum on the playing side and secured the long-term future of the club off the field. We are now optimistic for the future.”

The club recently signed a six-year sponsorship deal with Emirates Airline and is currently creating a bigger hospitality business and increasing seating to take capacity from 8,000 to 9,500.

It is also well on with plans to double this capacity again by 2013 for the England versus Australia Ashes test at the Emirates Durham International Cricket Ground (previously known as the Riverside).

It has also secured planning permission for an £8m Gateway building comprising of a banqueting suite and conference centre.

It is working with One North East on plans to build a £12m hotel at the site, with Mr Harker expecting to see these completed in time for the Ashes Test.

With revenue from international games key to the club’s profitability it is aiming to attract more fixtures over coming years.

Mr Harker added: “Revenue from international cricket is, in the medium term, essential to all of the Category A venues of which we are one.

“We are now seeing a recurring pattern where even the bigger, major city centre venues are losing between £500,000 and £1,000,000 in years without midsummer Test Matches.

“This situation is only sustainable if clubs are able to retain sufficient income from Test Matches in order to fund the costs of running such major venues in the lean years.

“I am pleased however that the ECB recognises the problem and that there is currently a lot of work going on within the game to address the issue of major match allocation.” Mr Harker added: “We are fortunate that with, for example, the hotel and Gateway Building we have a number of long-term income generating opportunities to underpin our cricketing ambitions.”

Clive Leach CBE, Durham chairman said its on the field success cannot be sustained without also pursuing other areas of income generating activity.

“Durham CCC is an ambitious club and although we have already achieved many milestones, we must continue to develop our infrastructure and international profile.

“Improvements such as the media centre, additional seating capacity and the new hotel development will reinforce the ground’s status on the world stage and should help us to secure more profitable international cricket and other major events for Durham.”