The uncertainty that loomed over the Pakistan Super League (PSL) due to the financial model has finally come to a close as franchise owners have accepted Pakistan Cricket Board’s (PCB) new financial model.
Earlier, PCB had presented a new financial model to the PSL franchise owners, which included a greater share of the central revenue pool, a fixed USD to PKR exchange rate, and financial relief for the COVID-19 struck PSL 5 and 6. The terms and conditions have been agreed upon by the PSL owners after a lot of deliberation amongst themselves.
Newly-elected PCB Chairman, Ramiz Raja, confirmed the news and expressed his delight at resolving the matters with the PSL franchise owners.
“I am delighted that all matters have finally been resolved, which is a big step forward in building a stronger relationship with the franchise owners as we look forward to working with them to take the PSL to greater and unprecedented heights,” Ramiz stated.
According to the new financial model, the franchises will receive 95 percent of the revenue generated from all revenue streams, including broadcasting rights, sponsorship rights, and ticket sales. Previously, the PSL franchises received around 85-90 percent of the total revenue generated.
PCB has also assured the PSL franchises that no new franchises will be brought into the competition until at least the tenth season of the competition. This will help the existing franchises receive the maximum amount from the revenue generated.
PCB has also offered a lucrative package to attract top-quality players to the league. Additional money will be allocated to procure the best players in the world as PCB has decided to allocate any additional revenue from broadcast revenues to bring in the best players. Broadcast revenue in excess of PKR 3 billion will be used exclusively to attract the best talent in world cricket.
In addition to this, PCB has also altered the franchise fee payment structure, which will prove beneficial for the PSL franchises. The franchises will have to pay 50 percent of the fees two months in advance of every PSL season, 25 percent of the fees will have to be paid before the start of the first match, and the remaining 25 percent will be paid before the final of the competition. Previously, the PSL franchises had to put forth a bank guarantee. This condition has now been removed as well.s
Source: Pro Pakistani