BASSETERE, St. Kitts – MINISTER OF SPORTS the Hon. Shawn Richards yesterday (Apr. 21) revealed at a press conference that over the next five years the Government would pay the US$7.5 million owed to the Caribbean Premier League (CPL), despite no budgetary support being provided for by the previous administration.
At the Prime Minister’s press conference held earlier this month, Richards informed that on January 26 this year the former Minister with responsibly for Sports signed a contract on behalf of the Government of St. Kitts and Nevis which committed the Administration to some US$7.25 million to CPL up until 2019.
Richards, at that time, indicated that a review of the contract would have to be made to see what benefits are there for St. Kitts and Nevis.
Speaking yesterday at the press conference, Richards confirmed that the Government has decided to honour the contract.
“In signing the CPL franchise team hosting agreement, the previous Administration committed the Government to a cost of 7.25 million USD to be paid in five annual installments for the period 2015 -2019. I must unfortunately say that the said contract amount was not appropriated for in the 2015 Budget Estimates.”
He however indicated that the Government had assessed the benefits of the CPL and mentioned a list of gains that could be derived.
“Investment in the form of inward investment from sponsors, international fans and CPL. The CPL franchise team remaining resident on island during the practice and match season of the CPL, ensures that accommodation and insurance cost of team personnel remain on island. As a team, the naming ensures worthwhile positioning of the Federation of St. Kitts and Nevis' name and attract sponsorship opportunities to offset subsidy cost. CPL brand lends to recognition to our Federation for high class sport and leisure activities.
“Development through planned local cricket development programmes to build local passion, talent and capacity for the game. Country promotion opportunity as the CPL plans to expand into North America will be strategically leveraged to further country promotion through our local franchise team exposure.
“My Government has therefore committed to structuring the CPL 2015 and ensure the mistakes of the past are no longer furthered through inaction and political expediency.”
He further indicated that the US$7.5 million to be paid across the next five years would finally be committed.
“The initial 2015 spend amount of US$2.5 million, payable in installments of $1.5 million, $500 000 and $500 000 are expected to be finalised through consultation with the Ministry of Finance.”
Richards thanked the CPL officials for their understanding during the period of uncertainty and stated that no penalties would be laid on the Government for late payments.
”I must say thanks to the organisers of CPL; they have been most understanding. They have recognised the fact that on February 16 we had a change of government, they recognised the fact that no monies were budgeted by the former Administration...as such they have been most accommodating and now we will not incur any interest charges for the late payments.”
He declared that the funds would come from recurrent revenue of the Government.
However, in an interview with SKNVibes, former Government Minister Glen Phillip gave a rationale for not providing budgetary support for the games, indicating that the deal was struck after the Budget was delivered.
"Let me explain the whole context of what is happening. If he had asked a question he would have understood what has happened. Last year, as you are well aware, CPL was very successful. You had 220 million households viewing the games and at the same time you had $26 millions circulating in the economy for the week in which CPL was here.
"Apparently, what happened even before the finals last year, Trinidad made an offer for the Semi-Finals and Finals for this year and next year."
He further explained that the Government at the time was reluctant to host games in 2015 not knowing what type of games would have been awarded.
"When we looked at the whole landscape, we didn't know what type of games would have presented itself, whether it would have been preliminary games or games leading up to the Finals. As a matter of fact, we were kind of reluctant to go with the CPL due to the fact that we were not getting the Finals and we didn't know where we stood in terms of the other games.
"However, in December after the Budget, CPL approached us and came with a new angle towards the games in which they offered us a team."
Phillip further stated that they had a plan in place to source the funds for hosting the games.
"We knew where we would have gotten the money; either from an appropriation warrant or we would have gotten some sort of donation whether it was the SIDF or someplace else. We knew basically how we would have done it. If the Minister don't, he could certainly reach out to me and I would tell him what to do. It was nothing sinister at all that was happening.”
