Cricket Australia wants to scrap a 20-year-old pay deal that shares income with the players, but the Australian Cricketers Association (ACA) rejected the idea.
The "in-principle" agreement signed between James Sutherland, the CA chief executive, and Alistair Nicholson, the ACA counterpart, paves the way for the cricketers to be re-contracted. Furthermore, should revenues exceed $1.67 billion, money will be pumped into grassroots cricket. "Though they did not say anything officially, they did not for once give us any negative impression".
The parties have agreed on a modified revenue-sharing model that will provide players 30% of agreed revenue, consisting of 27.5% of forecast revenue streams.
Skipper Steve Smith, who will lead his side in this month's two-Test tour of Bangladesh, struck a conciliatory tone on Twitter.
Under CA's proposal, only male global players would have had the chance to share in any surplus revenue, while other domestic male players and women at both domestic and worldwide level would have had to settle for fixed amounts which would have not fluctuated according to the game's income. "This is estimated to be up to Dollars 500 million in the next five-year period".
The players' union has argued strongly for the retention of the revenue share model, claiming that a revision would risk reducing them from being partners in the game to paid employees.
In March, the governing body proposed salary increases for men and women, which removed a clause from players' contracts guaranteeing them a percentage of the organisation's revenue. They have made history and created a legacy for generations of players to come. "We will conduct a player vote in the next 24 hours to follow past precedent, but we expect that to come back positive", he added. This was not a fight the players started.
"There is also a reality to confront".
Cricket Australia CEO James Sutherland is expected to announce details of the new five-year Memorandum of Understanding later in the day at the Melbourne Cricket Ground at a press conference.
"Obviously it's very good news for all of us as this series is going to take place finally and we all were hopeful for this series". "I'd like to think that in many ways, it's good sport and we can all shake hands at the end of it and move on".