This development brings to an end a long-running stand-off between the board and the franchises
The PCB and the PSL franchises have agreed on a new financial model for the league, bringing to an end a long-running stand-off which, at times, has threatened the existence of the league as it stands. The PCB had presented a final offer of a new model at last month’s PSL governing council meeting, which included giving the six franchises a greater share of the central revenue pool, financial relief for the Covid-hit seasons five and six, as well as fixing a USD dollar-Pakistan rupee exchange rate for all future payments.
After a few meetings among themselves, the franchises have accepted the offer.
“The longstanding matters between the PCB and the franchises were causing distraction and affecting the reputation of the brand,” Ramiz Raja, the PCB chairman, said. “I am delighted that all matters have finally been resolved, which is a big step forward in building stronger relationship with the franchise owners as we look forward to working with them to take the HBL PSL to greater and unprecedented heights.”
Increased share of Central Pool of Revenue
According to the new model, all franchises will get 95% of revenue generated from all revenue streams including broadcasting rights, sponsorship rights and gate receipts from the seventh edition onward. For PSL 5 and 6, the PCB will share 98% of the central pool revenue as an additional relief in view of the Covid-19. That revenue is yet to be paid out to the franchises.
In previous years, revenue shared varied between 85% and 90%. But at the same time, the plan to give them rights in perpetuity after the tenth season has been removed. Instead, franchises will have to pay an increased franchise fee [existing fee + 25% or 25% of market value of the franchise, whichever is higher].
Dollar rate fixed from date of signing
One of the key longstanding points of contention has been the exchange rate of the US dollar against the franchise fee. The price of franchises when they were auctioned was set in US dollars. In 2015, when the first five franchises came on board, the rate was PKR 105 to a dollar. Currently, the rate of a US dollar hovers above PKR 170. The agreed offer means the PCB will peg the US dollar to the day the new agreement is signed. International players will continue to be paid in USD.