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Commercial Report: Planning and Executing the Cricket National Championships

The National Championship games that are set to be held in the coming year will bring together various professional cricket athletes from all over the country. The games will be aired live on TV and will also be posted on our YouTube channel. Given the historical nationwide appreciation for the game, among other factors as outlined above, it is important to have proper planning and execution modalities so as to ensure the success of the National Championships. As the Local Organizing Committee (LOC) of the National Championships games, we would like to provide comprehensive information to the state and national associations regarding our intent to commercialize the event. In line with our mission, we hereby provide a detailed blueprint on the running of the National Championships and the accompanying modalities that will be utilized in implementing the plans.

Athletes’ Participation Agreement

All cricket athletes who will be engaged by the LOC will have to get acquainted with and fashion their affirmative official response to the Athletes’ Participation agreement. Essentially, the agreement will be the main contract between the athletes and the LOC. The agreement is a delineation of the prevailing understanding between the athletes and the LOC.

One of the terms and conditions underpinned in the participation agreement is that the athletes be part of the state or national cricket associations. Being part of such associations will ensure that the individual players are up to date with the legal and ethical policies in the cricket industry. The agreement will also stipulate that the players act in compliance with all reasonable directions provided by the LOC. This requirement will ensure that the LOC does not experience any unforeseeable constraints when dealing with the huge pool of athletes from various cricket associations in the country. To that effect, the athletes will also be required to attend an orientation program which will be organized in due course by the LOC. Such attendance will foster unity and oneness even as the National Championships continue to be planned. 

As stipulated in the participation agreement, the athletes will have to comply with the Code of Conduct of the cricket community in Australia. They will particularly have to comply with the International Criminal Court (ICC) Code of Conduct for cricket players (ICC Code of Conduct for Players, n.d). To that effect, they will be required to abstain from abusing or misusing cricket equipment, ground equipment, or clothing during a match (ICC Code of Conduct for Players, n.d). They will also be required to abstain from using language or gesture that is obscene, insulting or offensive (ICC Code of Conduct for Players, n.d). If the athletes engage in any of the aforementioned shunned behaviors, they will be issued with a warning during the first instance, and during subsequent instances, they will be suspended from further participation during the event. In case of such an eventuality, an athlete is paid 50% of the amount that would have been paid for the number of days they have been in engagement with the LOC.

The participation agreement will also stipulate that every cricket player who takes part in the National Championships will be paid a sum of $20,000. The payments will be made before, during, and after the tournaments are complete. They will essentially be split into three installments. Further, players who exhibit outstanding performance will also be given additional gifts which include a holiday overseas, medals, cash awards, and gift vouchers.

In the participation agreement, the players will further be required to affirm their commitment to being fully available for the National Championships. They will also agree to not taking any drugs or stimulants that are prohibited. If any athlete fails to comply with this underpinning, he/ she will be disqualified from further participation in the National Championships. The athletes will also be required to maintain their individual insurance coverage and take the necessary reasonable measures of ensuring that they are in good health and are able to adequately participate in the National Championships. 

Finally, the agreement will stipulate that each individual athlete has the right and the opportunity to seek legal advice prior to the signing of the participation agreement. 

Taxation Implications for the Athletes

The athletes will be subject to various tax obligations. This is because the work they do is incidental to their occupation. Since each of them will earn $20,000, it is apparent that they will fall in the 19% tax bracket (Clark & Miller, 2000). They, however, do not pay 19% of the total amount payable to them, but they pay 19% on $1800 which is $342 (Clark & Miller, 2000).

It is also important to note that the gifts received by the outstanding players will not be exempt from taxation. The gifts include; a holiday overseas, cash awards and gift vouchers. Although gifts are ordinarily exempt from taxation, gifts received by athletes are subject to taxation since they are incidental to their occupation (Clark & Miller, 2000). This factor was well illustrated in the case of Kelly v FCT (1985) 16 ATR 478. Herein, a famous athlete won a ‘Sandover Medal” and received a $20,000 cash prize which was associated with the award (Clark & Miller, 2000). The medal was awarded to the best player. The issue for consideration was whether the cash prize was subject to taxation. The court held that gifts are assessable for purposes of taxation only in exceptional circumstances (Clark & Miller, 2000). The court further held that the cash prize was “reasonably incidental to the taxpayer’s employment and therefore assessable” (Clark & Miller, 2000, p. 63). It was essentially not an exceptional circumstance. It was also not exceptional because the players were aware of the award and they specifically applied their skills with the purpose of winning the award. The transaction was also blatantly a commercial one (Clark & Miller, 2000). Based on the stare decisis laid out in this case, it is apparent that the cash awards and the holiday overseas will be subject to taxation.

Trademark

The trademark for the tournament will be as follows;

            Australia Cricket Championships 2019, Building a Heritage of Prosperity

To prevent this trademark from being used by another entity, it is important to provide protection thereto. The first step of protecting the intellectual property is by registering the trademark. Once the mark is registered under the Trade Marks Act 1995, the owner thereto acquires the exclusive legal right to utilize, license and sell the intellectual asset in Australia (business.gov.au, 2018). Before applying or registering for a trademark, the prospective owner is required to search the Australian Trade Marks Search System with the aim of ascertaining that the mark is available for use (business.gov.au, 2018). Once it is apparent that the trademark is available for usage, an application can be made through the IP Australia website (business.gov.au, 2018). Once we complete the registration process, the application will be assessed within three to four months and thereafter, if the trademark has been accepted, it will be announced in the Australian Official Journal of Trademarks (business.gov.au, 2018). If no opposition is made thereto, we will pay the registration fee and the trademark will officially be registered to us.

Broadcast Opportunities

The Australia Cricket Championships 2019 will be aired live on NBN television. NBN has nationwide coverage thus every cricket fan will get the snippet chance of watching the cricket games as they are aired live. NBN will particularly air the first thirty minutes of each cricket match. Thereafter, sports commentators and sporting experts will provide an analysis of the game as it commences. Next, the games will be broadcasted from time to time within intervals of 15 minutes. The final hour of each game will also be broadcasted live.

Crucial parts of each game will also be posted on our YouTube channel. This will ensure that the fans are able to access the snippet parts of the matches at any given time. Another ‘new media’ broadcasting opportunity that will be utilized is through Facebook. We have opened a Fan page and an official page and we continually invite our fans to like the pages. These pages are instrumental in advertising and making announcements regarding the upcoming National Championships.

Revenue

Various modalities will be used to ensure that the requisite revenue is available so as to ensure the smooth running of the National Championships. One of the modalities of raising revenue will be through the selling of tickets or merchandise to spectators (Clark & Miller, 2000). Some of the merchandise that will be sold to spectators include T-shirts, caps, and various food items. However, before the actual sporting day comes, there is an apparent need for availability of revenue so as to ensure that the planning is seamless. To that effect, we will receive a federal grant that will go a long way in aiding the planning. We will also receive part of our revenue from various corporate sponsors.

Corporate Sponsors

Various corporate sponsors have expressed their commitment towards supporting the players, as well as, the National Championships. The following corporate sponsors will be part of Australia Cricket Championships 2019;

1. Alinta Energy; it is a fast-paced Australian Energy company that has a long-standing reputation of partnering with Australian cricket teams on a long-term basis. In this instance, however, Alinta will partner with us on a short-term basis. The contract between the LOC and Alinta will be with respect to the two-month period of the tournaments. The investment will be $130,000.
2. Commonwealth Bank; this company has been supporting Australian Cricket for the past three decades. The investment from this sponsor will be $150,000. The partnership herein will be with respect to the two-month period.
3. Domain; the investment will amount to $120,000. The contract herein will be for a one-year period.
4. MasterCard; this sponsor will ensure that spectators are able to make electronic payments seamlessly.
5. Accenture; will work hand-in-hand with NCN to ensure that the live-streaming is conducted in an efficient manner.
6. Toyota; Toyota Australia will partner with us on a long-term basis. The contract will run for a period of 2 years. The investment made will amount to $600,000. Toyota Australia will receive signage rights within the revenue.
7. Woolworths; will ensure that quality wristbands, caps, and t-shirts are provided to us for purchase by spectators during the event.
8. Qantas; Qantas will be the official airline of the national championships.
9. Bet365; will be a short-term partner thus the contract will run for two months. The contribution pledged by the company is $70,000.
10. ASICS; will also be a short-term partner thus the contractual agreement will run for two months. The investment pledged by the company is $90,000.

Protection of Corporate Partners from Ambush Marketing

We will protect our corporate partners from ambush marketing by making the best of every advertising opportunity to inform our audience regarding the sponsors of the national championships. We will also make the best of domestic legislation on the banning of unauthorized advertising within a certain radius from the sporting venue (Marmayou, 2013). We will further establish formidable communication channels with local authorities and landowners within a reasonable radius from the venue of the championships. This will ensure that any complaints or concerns regarding matters appertaining to ambush marketing are acted upon in an effective manner.

Corporate Hierarchy

The corporate hierarchy will be in three tiers. The classification is based on the longevity of the partnership between the sponsors and the LOC, and the amount or type of contribution made by each sponsor. Corporations on the first tier as illustrated on the figure below are those that have made contributions amounting to over $500,000 and have pledged a long-term involvement with the course. Corporations on the second tier have made contributions amounting to at least 10% of the aforementioned figure. Corporations on the third tier are those that have made their in-put in kind.

Toyota

Alinta, Commonwealth Bank, Domain, ASICS, Bet 365

MasterCard, Accenture, Qantas, Woolworths

Merchandise Items

The three merchandise items we will create for this event include; wrist bands, caps, and t-shirts. Licensure requirements for the sale of the items will be buttressed by dint of the fact that the supplier is already an authorized dealer. Woolworths will provide the items subject to the application of the logo designs as provided by us. Tis engagement with Woolworths will also insure the quality of the products.

Conclusion

The National Championship games are set to be held within the coming year. In line with our mission as the LOC, we have outlined a detailed blueprint on the running of the National Championships and the accompanying modalities that will be utilized in implementing the plans. The Athletes’ participation agreement comprises of the contractual agreement between the LOC and the athletes. A trademark has been created and the modalities of protecting it thereto have been put in place. Various corporate partners have been targeted and a corporate hierarchy has been put in place. Modalities of protecting the corporate partners from ambush marketing have also been put in place. The Australia Cricket Championships 2019 is set to be a great success.