The widespread uncertainty in the Pakistan Super League (PSL) over the financial situation has finally ended as franchise owners have adopted a new Pakistan Cricket Board (PCB) economic model.
Earlier, the PCB had introduced a new financial model for PSL franchise holders, which included a large share of centralized revenue, a steady USD for PKR exchanges, and COVID-19 financial support for PSL 5 and 6. and the terms agreed upon by the PSL owners after much discussion between them.
The newly-appointed PCB chairman, Ramiz Raja, confirmed the news and expressed his delight at resolving the issues with PSL rights holders.
I am glad that all the issues have been resolved in the end, which is a big step forward in building solid relationships with right holders as we look forward to working with them to take the PSL to the highest and unprecedented level," said Ramiz.
According to the new financial system, franchisees will receive 95 percent of the revenue from all revenue streams, including broadcasting rights, sponsorship rights, and ticket sales. Previously the PSL franchises received about 85-90 percent of total revenue
.PCB has also confirmed to PSL franchises that no new franchises will be introduced until the tenth season of the competition. This will help existing franchises to get the highest value on profits available.
PCB also offered a profitable package to attract top players in the league. Additional money will be allocated to find the best players in the world. The PCB has decided to issue any additional revenue earned from broadcast revenue to bring in the best players. Distribution revenue of more than PKR 3 billion will only be used to attract the best talent in world cricket.
In addition to this, the PCB has also modified the franchise payment structure, which will benefit PSL franchises. The franchises will have to pay 50 percent of the bills two months before the entire PSL season, 25 percent of the accounts will have to be paid before the start of the first game, and the remaining 25 percent will be paid before the tournament final. Earlier the PSL franchises had to issue a bank guarantee. This condition has now been removed.
The key terms of the offer include donating to all PSL teams - Islamabad United, Karachi Kings, Multan Sultan, Lahore Qalandars, Peshawar Zalmi, and Quetta Gladiators - a significant central revenue share.
The offer includes financial relief for season 5 of the PSL and season 6 as disrupted by the closure of COVID-19. The parties and the PCB have also agreed to adjust the dollar level from the date of signing the player, and it has also been decided that foreign players will be paid in USD dollars.
Following the settlement, Chairman Ramiz Raja issued a statement approving the decision. Raja also admitted that disagreements between the Pakistan Cricket Board and teams in the Pakistan Super League had tarnished the image of the PSL and created unnecessary disruption.
Welcoming the efforts from both sides, the happy Raja, who is also a Pakistani cricketer, said he was looking forward to "building stronger relationships with right holders."
He also said he was looking forward to taking the Pakistani domestic league T20 up and making it "very high" in the future.
The six-right PSL owners have also issued a joint statement once the matter has been resolved.
"The PSL is very close to our hearts. Since 2016, we have all worked very hard to bring you to where you are today. The acceptance of the PCB gift is a testament to our commitment and determination to make the HBL PSL league bigger and better," reads a joint statement.
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