Pakistan Cricket Board (PCB) has assured at least Rs850 million per franchiser from the central income pool for each of the next five editions of Pakistan Super League (PSL) commencing with 11th edition in 2066.
Under clause 6.4 of the agreement — available with Dawn — executed between the PCB and PSL franchises, if any of a franchise’s pool share in each of the five editions drop below guaranteed amount, PCB will compensate the difference.
In clause 5.2 c) of the agreement: “If the share of Central Pool Income in respect of a Tournament shall be less than Rs850 million, PCB will make good such shortfall.
The provision has soothed fears of massive losses for three franchises — Quetta Gladiators, Islamabad United and Peshawar Zalmi — whose fee for the franchise is fairly below Karachi Kings’, Lahore Qalanadars’ and Multan Sultans’.
According to the sources, PSL teams worth for Quetta Gladiators has been fixed at Rs360 million, Peshawar Zalmi Club Rs480million per year, Islamabad United Rs490millon per year and Lahore Qalandars will be given RS670milion while Multan Sultans would stand with 1. 8 billion.
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Now, meanwhile the base price for the two new sides — to auctioned off in Islamabad on Jan 8 — has been fixed at Rs1. 3 billion apiece, sources said.
Franchises must spend $1.4 million each to cover players’ fees as well as accommodation and travel through the league. Consequently, the cumulative price for remaining five franchises – two new ones combined with Multan Sultans, Karachi Kings and Lahore Qalandars – is high and close to guaranteed minimum of Rs850 million as opposed to Gladiators, United and Zalmi.
This was a disparity that Multan Sultans owner Ali Tareen had used as a stick to hit the PSL with when he complained about the PSL’s financial model, saying his franchise was making losses because its valuation had been too high. Later, the PCB did not extend ownership rights of Sultans with their original owner but renewed five other franchises.
While the franchise amounts differ, the shares of individual sides from the central fund are uniform. Under the financial model, 95% of the revenue is divided among the six franchises and PCB keeps five per cent.
“50pc of the revenue is to be paid two months after the completion of the tournament, 40pc after four months and 10pc completion [of] nine months or upon receipt of an audit report conducted by PCB, whichever is earlier,” according to clause 6.5 of agreement reads.
Further incentives are also available under clause 6.6 should the PCB’s year-end net media revenue exceed Rs3bn. The remaining anywhere to a maximum of Rs50 million surplus will be spent on acquiring top foreign players and divided among the PCB and franchises in a ratio of 80:20.
