The PCB has offered the PSL franchise a hike in its share from the central revenue pool starting next year. That, as well as a few other concessions, comes as board and franchisees attempt to resolve a long-standing impasse over the league’s financial model. The PCB is also set to fix the US dollar rate on franchisees’ annual fees – a key sticking point – and also offered financial relief for the last two editions of the league, both of which have been badly hit by the Covid-19 . global pandemic.
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PCB has sold ownership rights to all six franchises till 2025
Although the PCB sold ownership to all six franchises by 2025. The changes introduced in the new model will remain in place until the 20th season of the PSL, to be played in 2035. The exact details of the revised revenue shares or the financial relief are not yet known, and they expected to received by the franchisees in the next few days. The six franchisees expected to conduct internal consultations before deciding whether or not to accept the offer.
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The hope is that the franchise will accept the offer, says PCB chairman Ramiz Raja
As PCB chairman Ramiz Raja categorically stated in a brief statement, the expectation is that the franchise will accept the offer – a sign that further talks will probably not be considered. Ramiz met the franchise on Monday, the second meeting since Friday as he tries to take the league ahead of the financial impasse he has found himself in.
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Ramiz said that “taking into account the legal and contractual framework, the PCB has introduced a new financial model to the franchisees with the sole objective of supporting and resolving their concerns.” “PCB is hopeful that the franchisees will accept the offer so that we can focus on strengthening the HBL PSL brand.”
PCB has made profits from the league
The franchise’s broad grip on the financial model has been where the PCB has profited from the league. The franchise has struggled to break itself apart since the league’s inception in 2016. Four of the six franchises, it is believed, have yet. To put the brakes on their investments even after six seasons. From the franchise fee alone, the PCB earns USD 15.65 million per season. And also takes 15% from the broadcast revenue stream. The PCB takes home a portion of the gate money and sponsorship contracts. Despite the disparity in annual rights fees, all six teams receive an equal share from the central revenue pool each season.
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In 2020, the franchises took the fight to the courts. Although the courts eventually asked both sides to settle the matter out-of-court. This led to former board chairman Ehsan Mani forming. A one-man panel with a retired former Chief Justice of Pakistan to put an end to the issue. Tassaduq Hussain Jilani submitted that report earlier this month. Although the PCB has not shared it with the franchises, citing it as a confidential document. Whether that report retains relevance given the PCB’s offer remains to be seen.
The PCB always argued that the fifth season of the league was the first to be entirely in Pakistan
Under former chairman Najam Sethi, the PCB always argued. That once the league completely moved back to Pakistan. The franchise would be towards breaking even due to the low cost of running the league. There rather than in the UAE, and That would also generate “higher economic activity in the country”. The fifth season of the league was the first to be entirely in Pakistan. But it was hit by the Covid-19 crisis and had to be completed in two phases. Adding to the cost of the operation. The sixth edition similarly broken after bio-bubble breaches and the league moved to Abu Dhabi a few months later.
