PSL’s financial model review suspended as Ramiz meets with owners – Journal

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LAHORE: No deliberation took place on Pakistan Super League (PSL) franchises’ long-standing request to review the financial model of the franchise-based T20 competition when PCB chief Ramiz Raja had a brief preliminary meeting with owners.

Although detailed discussions were scheduled for Monday, Friday’s meeting brought together representatives from Multan Sultans and Lahore Qalandars, while the other four were present by video link.

PSL has been in the headlines for the wrong reasons over the past four years and the hot topic is the financial health of franchises, which demand a larger share than the 80% of revenue generated with the rest going to the PCB coffers.

Another persistent problem is the devaluation of the Pakistani rupee over the past three years. Franchises ask the PCB to set a price in US dollars in local currency to compensate for losses since franchises have to pay their foreign players in dollars.

These demands were first made under the tenure of Najam Sethi, the president of the PCB who launched the league in 2016. But neither Sethi nor his successor Ehsan Mani paid any attention. Franchises have challenged the Lahore High Court against a PCB decision to pay the annual fee by September 25, 2020, without paying financial dues for the 2019 edition of the league.

Later, however, both sides vowed to resolve their issues out of court.

But these issues weaken the immediate future of PSL. PCB is in pole position after signing a 10-year deal with franchises before the start of the inaugural edition of PSL.

Under this deal, in the event that a franchise does not want to continue, the PCB will auction that franchise and take all the money without offering any shares to the original team owners. So if a franchise wishes to leave PSL, it will not get any of the franchise goodwill amount because all the benefits will go to the new buyer’s PCB.

Franchises claim they were losing $ 15-18 million in each edition and under these conditions it is not possible for them to run their business.

But PCB’s position is that since the franchises have signed the long-term agreement, they must stick to it.

However, during his press conference earlier this week, Ramiz said he would call on franchises to increase compensation for foreign players to attract the biggest names in world cricket. This step, in turn, will be useful in encouraging other nations to visit Pakistan in the event of security concerns.

Franchises, at this point, refrain from spending more under the existing financial model.

It’s relevant to mention here that the Multan Sultans are hit the hardest after paying $ 6.5 million when they joined the PSL family as the sixth franchise in 2018. In contrast, Karachi Kings was priced at $ 2. $ 6 million, Lahore Qalandars $ 2.5 million, Islamabad United and Peshawar Zalmi $ 1.5 million each and Quetta Gladiators $ 1.1 million.

Meanwhile, in a brief press release after Friday’s meeting, the PCB said: “Ramiz Raja highlighted and appreciated the contribution of franchisees in the growth, development and promotion of Pakistani cricket, and assured the owners of the team that he remained committed to improving and strengthening the HBL PSL. Mark.

“The president assured the owners that he understood the challenges they were facing and promised to work with them.

Posted in Dawn, le 25 September 2021

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