Lancashire Cricket report net profit following challenging 2021
Lancashire Cricket can report a surplus of £1,806,000 for the year ended 31 December 2021, following a year during which the Club continued to feel the impact of the Covid-19 pandemic.
The year started with the business continuing to be heavily impacted by Government restrictions and the initial three games of the season were played behind-closed-doors. Following that, reduced capacities were imposed until mid-July, along with limited conference and events business and reduced hotel occupancy.
However, the Club was successful in its business interruption insurance claim which generated £2.5million of insurance proceeds to mitigate the lost revenue throughout the pandemic.
In July, following the easing of restrictions in England, Emirates Old Trafford then hosted a successful sell-out International T20 fixture between England and Pakistan.
Following this was the unprecedented cancellation of the Test Match against India in September, just prior to gates opening on Day One. The Club suffered a loss of contribution from hospitality and secondary food and beverage, however the England and Wales Cricket Board (ECB) supported with general admission ticket refunds.
As previously stated, domestic cricket was also affected with matches played behind-closed-doors and at limited capacity for the Vitality Blast competition, however the financial impact of this was significantly reduced as the ECB provided compensation to top up revenues to normal levels.
The Club’s ECB distribution increased in 2021, due to a combination of new investment in the women’s game and additional prize money as a result of the men’s team being runners-up in the LV= Insurance County Championship. The special distribution of £1.1 million received in 2020 has continued to be spread over a three-year period.
Towards the end of 2021, the Club’s revenues began to increase as confidence returned to the market. The on-site hotel generated record revenues in October 2021 and the conference and events space at Emirates Old Trafford was heavily utilised during November 2021.
The outlook for 2022 is to continue with the Club’s recovery from the pandemic, across all areas of the business. The continued re-development of Emirates Old Trafford is also now underway and will be a major focus during the next year, which will see the on-site Hilton Garden Inn hotel extended to 250 bedrooms and increased and improved facilities for Members and supporters with a new lower tier stand installed, new restaurant, museum experience, ticket office and shop.
Angela Lowes, Chief Financial Officer at Lancashire Cricket said: “It has been a challenging year that, financially, would have resulted in a loss if it wasn’t for the Club’s successful business interruption claim.
“The demands of stopping and starting our business during the year, presented us with an incredibly difficult challenge throughout 2021. Now, we are looking forward to our business returning to normal and enjoying a successful 2022 for both Lancashire Cricket and Emirates Old Trafford.”