Disgraced former Australian cricket captain Steve Smith stands to lose up to $100million following his involvement in the ball tampering scandal, a finance expert has predicted.
Smith was set to earn up to $10million this year in wages and multiple sponsorship deals, until he allowed Cameron Bancroft to cheat on his team’s behalf in the third Test against South Africa.
The financial cost of his decision – which Smith tearfully admitted he will regret for the rest of his life – is expected to burden the 28-year-old well into the future.
Finance expert Terry McCrann suggested the impact the scandal will have on his medium and long-term earnings capacity could see him loose a nine-figure sum over ten years, Herald Sun reported.
Steve Smith (pictured with his father Peter) stands to lose up to $100million following his involvement in the ball tampering scandal, a finance expert has predicted
Smith (pictured with fiancee Dani Willis) was set to earn up to $10million this year in wages and multiple sponsorship deals, until he allowed Cameron Bancroft to cheat on his team’s behalf in the third Test against South Africa
The financial cost of his decision – which Smith tearfully admitted he will regret for the rest of his life – is expected to burden the 28-year-old well into the future
Smith is suspended for a year and won’t be able to earn his $1.5million base wage, which is believed to grow by an extra $14,000 per Test, $7,000 per One Day International and $5,000 per T20 International.
It’s understood he will still earn a wage while on suspension, but the amount remains unclear.
He also had his lucrative $2.4million Indian Premier League contract ripped up by the Board of Control for Cricket of India.
Next to fall were Smith’s personal sponsorship deals – including with Weet Bix and Commonwealth Bank – thought to be collectively worth more than $1million.
Smith had been the face of breakfast cereal Weet Bix, but its owner, Sanitarium, this week removed all material related to the sacked Australian skipper from its website.
‘Based on the ball tampering incident and the findings of Cricket Australia’s investigation, we are unable to continue our relationship with Steve Smith,’ executive general manager for Sanitarium Australia, Todd Saunders, said.
Smith also lost his deal with the Commonwealth Bank, who chose last year not to continue their deal with the men’s team.
Finance expert Terry McCrann suggested the impact the scandal will have on Smith’s medium and long-term earnings capacity could see him loose a nine-figure sum over ten years
Smith (right with Cameron Bancroft) is suspended for a year and won’t be able to earn his $1.5million base wage for playing cricket for Australia
Next to fall were Smith’s personal sponsorship deals – including with Weet Bix and Commonwealth Bank – thought to be collectively worth more than $1million
His deal with American footwear giant New Balance – which said it would wait for Cricket Australia’s investigation to finish before making a decision – now hangs on a knife edge.
A New Balance spokesman told Daily Mail Australia earlier in the week the company would make an announcement on its partnership with Smith on Friday.
Based on his age and form, McCrann predicted Smith could have remained Australian captain for another decade while continuing to rake in between $6million and $10million a year.
Sanctions imposed on Smith by Cricket Australia means he won’t be eligible for another leadership position until 2020.
McCrann wrote: ‘Smith could have anticipated a Ricky Ponting future; now it’s going to be more a Tiger Woods one.’
Smith had been the face of breakfast cereal Weet Bix, but its owner, Sanitarium, this week removed all material related to the sacked Australian skipper from its website
Based on his age and form, McCrann predicted Smith could have remained Australian captain for another decade while continuing to rake in between $6million and $10million a year
David Warner (pictured with wife Candice and their two kids) is also expected to lose millions, but is closer to the end of his career than Smith and earns less playing for Australia
Warner – who instructed Bancroft to ball tamper using a piece of sandpaper – is also suspended for a year from earning his Cricket Australia base salary of $900,000
David Warner is also expected to lose millions, but is closer to the end of his career than Smith and earns less playing for Australia.
Warner – who instructed Bancroft to ball tamper using a piece of sandpaper – is also suspended for a year from earning his Cricket Australia base salary of $900,000.
He was also set to make $2.4million playing in the IPL for Sunrisers Hyderabad until his suspension.
Electronics company LG on Wednesday said it would not renew its soon-to-expire deal with Warner.
His deal with sportswear giant ASICS – along with Bancroft’s – was on Thursday terminated.
‘The decisions and actions taken by David Warner and Cameron Bancroft are not something that ASICS tolerates and are contrary to the values the company stands for,’ a spokesman said.
Bat-maker Gray-Nicolls could follow suit, though Warner’s partnerships with Channel Nine and and Toyota are said to be safe, at least for now.