PCB offers new terms to PSL franchises


Sohail Speaks Yasir's Blog Fazeer's Focus

User Tag List

Page 1 of 2 12 LastLast
Results 1 to 80 of 81
  1. #1
    Debut
    Jun 2001
    Runs
    88,106
    Mentioned
    2252 Post(s)
    Tagged
    27 Thread(s)

    PCB offers new terms to PSL franchises

    Ramiz Raja on Monday chaired the meeting of the Pakistan Super League Governing Council.

    As part of its commitment and resolve to assist and support the franchises so that they can continue to play their crucial role in the growth of cricket in Pakistan, the PCB has offered the following to the six franchisees:

    · Covid-19 relief for HBL PSL 5 and 6

    · Increased share from the Central Pool of Revenue (CPR) for HBL PSL 7–20

    · Fixation of Dollar rate

    Ramiz Raja: “Taking into the account legal and contractual framework, the PCB has offered a new financial model to the franchisees with the sole purpose of supporting and resolving their concerns. The PCB expects the franchisees to accept this offer so that we can switch our focus on strengthening the HBL PSL brand.”



  2. #2
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by Saj View Post
    Ramiz Raja on Monday chaired the meeting of the Pakistan Super League Governing Council.

    As part of its commitment and resolve to assist and support the franchises so that they can continue to play their crucial role in the growth of cricket in Pakistan, the PCB has offered the following to the six franchisees:

    · Covid-19 relief for HBL PSL 5 and 6

    · Increased share from the Central Pool of Revenue (CPR) for HBL PSL 7–20

    · Fixation of Dollar rate

    Ramiz Raja: “Taking into the account legal and contractual framework, the PCB has offered a new financial model to the franchisees with the sole purpose of supporting and resolving their concerns. The PCB expects the franchisees to accept this offer so that we can switch our focus on strengthening the HBL PSL brand.”
    The Franchises are already taking 80% of the PSL Revenue Pool i.e. the Broadcasting and Title Sponsorship and other Revenues. In the IPL it is maximum of 50%. If the PCB is going to give everything to the Franchises, what is the point of having the PSL if they don't make anything from it?

    I am dissapointed, i wanted the PCB to get tough with these Franchises to find ways to increase their own revenues or make way for other more professional and keen Franchise owners.

  3. #3
    Debut
    Apr 2013
    Runs
    4,509
    Mentioned
    514 Post(s)
    Tagged
    1 Thread(s)
    The Franchises are literally playing the PCB.

    The Qalandars bought a franchise in South Africa, it was their luck that the old structure didn't work and South Africa scrapped the entire deal.

    The Gladiators have a team in the Sri Lankan premier league.

    The King's owner has a T10 tournament/team among other things.

    They have vehemently denied entry of the seventh team and continue to pull the tournament down.

    National T20 is almost at par with PSL at the moment barring the exception of two or three foreign players who are head and shoulders above our international talent. This is just so disappointing to read.


    Azaadi. InshAllah.

  4. #4
    Debut
    Oct 2016
    Runs
    24,104
    Mentioned
    571 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Savak View Post
    The Franchises are already taking 80% of the PSL Revenue Pool i.e. the Broadcasting and Title Sponsorship and other Revenues. In the IPL it is maximum of 50%. If the PCB is going to give everything to the Franchises, what is the point of having the PSL if they don't make anything from it?

    I am dissapointed, i wanted the PCB to get tough with these Franchises to find ways to increase their own revenues or make way for other more professional and keen Franchise owners.
    Not sure about the details of new model however, IPL and PSL have few other differences.

    - In IPL after the first 10 years there was no franchise fee which is charged and the owners actually own the franchises. Its now only from the IPL's revenue from which BCCI takes a share and there is no other source like fees previously. Yes two new franchises might start to pay something.

    - PSL gives teams only on contracts and PCB earns early PKR 2bln + from the franchise fees and PCB has no plan to stop getting that. So PCB's revenue stream is still there and is constant, giving away little bit for of the revenue from the PSL itself wont make much of a difference to PCB

    So point is both models are being operated in a different manner. So direct comparison of BCCI taking 50% while PCb taking only 20% or less of the revenue pool is not a valid comparison. Because, as mentioned PCB's major source is the contractual fees which is not going to discontinue as per my understanding unlike IPL which stopped charging the fees after 10 years. PSL gives teams on contracts to franchises and that fees is the major source of PCB's income while IPL gives away the ownership of the franchises.
    Last edited by Titan24; 27th September 2021 at 21:52.

  5. #5
    Debut
    Oct 2016
    Runs
    24,104
    Mentioned
    571 Post(s)
    Tagged
    0 Thread(s)
    So overall I think PCB was already in pretty safe situation and had favorable terms from the start of the contract with fixed yearly income from franchise fees revenue.

    However, when the league becomes bigger and the broadcasting as well as other revenues start to increase then PCB can evaluate whether they can discontinue the yearly franchise fee and increase their share of the overall revenue pool.

    At the moment PCB gets good fixed sum (Even benefitted from exchange rate) on yearly basis along with the variable 20% or now possibly less from overall PSL revenue.
    Last edited by Titan24; 27th September 2021 at 21:58.

  6. #6
    Debut
    Jun 2001
    Runs
    88,106
    Mentioned
    2252 Post(s)
    Tagged
    27 Thread(s)
    Ramiz is definitely more hands-on as Chairman.

    He obviously sees the importance of keeping the PSL owners sweet.

    Lets see if the PSL owners accept this olive branch.



  7. #7
    Debut
    Sep 2018
    Runs
    725
    Mentioned
    34 Post(s)
    Tagged
    0 Thread(s)
    PCB gets the franchise fees.

  8. #8
    Debut
    Sep 2018
    Runs
    725
    Mentioned
    34 Post(s)
    Tagged
    0 Thread(s)
    The IPL model is far better. Franchise fees should have stopped after a 10 year period whereby both the PCB and the Owners would have been forced to come together to build a better league.

  9. #9
    Debut
    Jan 2006
    Runs
    36,627
    Mentioned
    426 Post(s)
    Tagged
    1 Thread(s)
    Any news about the draft being replaced by an auction system?

  10. #10
    Debut
    Jun 2001
    Runs
    88,106
    Mentioned
    2252 Post(s)
    Tagged
    27 Thread(s)
    Quote Originally Posted by Rana View Post
    Any news about the draft being replaced by an auction system?
    Nothing from PCB yet.



  11. #11
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    By keeping the Dollar fixed at $105 when the Dollar is touching $170. Who is going to suck up the $65 loss?

  12. #12
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by Titan24 View Post
    Not sure about the details of new model however, IPL and PSL have few other differences.

    - In IPL after the first 10 years there was no franchise fee which is charged and the owners actually own the franchises. Its now only from the IPL's revenue from which BCCI takes a share and there is no other source like fees previously. Yes two new franchises might start to pay something.

    - PSL gives teams only on contracts and PCB earns early PKR 2bln + from the franchise fees and PCB has no plan to stop getting that. So PCB's revenue stream is still there and is constant, giving away little bit for of the revenue from the PSL itself wont make much of a difference to PCB

    So point is both models are being operated in a different manner. So direct comparison of BCCI taking 50% while PCb taking only 20% or less of the revenue pool is not a valid comparison. Because, as mentioned PCB's major source is the contractual fees which is not going to discontinue as per my understanding unlike IPL which stopped charging the fees after 10 years. PSL gives teams on contracts to franchises and that fees is the major source of PCB's income while IPL gives away the ownership of the franchises.
    According to my estimates taking into account the Annual fee from the Franchises and the share of the Broad Cast and Title Sponsorship. The PCB is making $16-18 million from the PSL. According to the current model, the Franchises have to pay up the TV HD production costs whereas the PCB takes care of the Match officials.

    In order for the League to be really profitable, the PCB has to hit a bonanza on the next 3 year Broadcast and Title Sponsorship now.

  13. #13
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by unemployedgm View Post
    The IPL model is far better. Franchise fees should have stopped after a 10 year period whereby both the PCB and the Owners would have been forced to come together to build a better league.
    I am not in favour of stopping the Franchise Fees. The PCB should also keep their options open with regards to other interested investors who are willing to pay higher fees and manage the Franchises better.

  14. #14
    Debut
    Oct 2016
    Runs
    24,104
    Mentioned
    571 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Savak View Post
    By keeping the Dollar fixed at $105 when the Dollar is touching $170. Who is going to suck up the $65 loss?
    I am not sure as of what date they are going to fix the dollar to, I dont think they are going to fix it at $105 unless there is some information available as that would be really extreme as there was no such thing in the contract when the league was launched. It will be based upon the recent or maybe year or so old dollar prices to hedge it for the franchises who are paying much more than they were doin in 2016 due to dollar value.

  15. #15
    Debut
    Oct 2016
    Runs
    24,104
    Mentioned
    571 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Savak View Post
    According to my estimates taking into account the Annual fee from the Franchises and the share of the Broad Cast and Title Sponsorship. The PCB is making $16-18 million from the PSL. According to the current model, the Franchises have to pay up the TV HD production costs whereas the PCB takes care of the Match officials.

    In order for the League to be really profitable, the PCB has to hit a bonanza on the next 3 year Broadcast and Title Sponsorship now.
    Fair estimates I think. The way PCB has created the model its profitable for PCB anyways due to the yearly franchise fees however, for the health of the league and franchises as you mentioned title sponsorship and broadcasting rights would be really important.

  16. #16
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    The PSL salary cap is 1.2mn about a 10th of the IPL. Plus they have to pay the franchisee fees and other expenses. Now if all costs are around the same 1/10th of a IPL team, a PSL team would be profitable if the revenues from the revenue pool was 10 percent of the IPL.

    Here lies the issue.

    IPL currently has a broadcast deal of 2.55bn usd. PSL is 36mn usd. The difference is way way too much.

    PSL either has to cut costs or raise revenues. The current revenue to expenditure model isnt sustainable.

    PCB already gives away 80 per cent of the revenue to the franchisee. They are also responsible for all the organization including officials, production, match venues etc. So they dont have much room to cut their share, unless ofcourse they want to part with the 10 to 12mn they get as franchise fee.

    Some of the franchisee may have paid over the top money to get a team. Buying a team for more than a 1mn per year doesn't make sense when the revenue pool is worth only 20-25mn a year. Thats why they are making losses.

  17. #17
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by cricketjoshila View Post
    The PSL salary cap is 1.2mn about a 10th of the IPL. Plus they have to pay the franchisee fees and other expenses. Now if all costs are around the same 1/10th of a IPL team, a PSL team would be profitable if the revenues from the revenue pool was 10 percent of the IPL.

    Here lies the issue.

    IPL currently has a broadcast deal of 2.55bn usd. PSL is 36mn usd. The difference is way way too much.

    PSL either has to cut costs or raise revenues. The current revenue to expenditure model isnt sustainable.

    PCB already gives away 80 per cent of the revenue to the franchisee. They are also responsible for all the organization including officials, production, match venues etc. So they dont have much room to cut their share, unless ofcourse they want to part with the 10 to 12mn they get as franchise fee.

    Some of the franchisee may have paid over the top money to get a team. Buying a team for more than a 1mn per year doesn't make sense when the revenue pool is worth only 20-25mn a year. Thats why they are making losses.
    The Franchises take care of the production costs. PCB takes care of the officials.

  18. #18
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    Quote Originally Posted by Savak View Post
    The Franchises take care of the production costs. PCB takes care of the officials.
    Franchisees pay for production? Its PCB who pay for it. Didn't pcb hire sunset vine?

  19. #19
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by cricketjoshila View Post
    Franchisees pay for production? Its PCB who pay for it. Didn't pcb hire sunset vine?
    According to ESPN Cricinfo, the production costs are divided equally among the franchises but the PCB takes care of the officials. I agree with you, unless the PCB hits a big bonanza on their next 3 year broadcast deal, the PSL's current economics do not look profitable or sustainable

  20. #20
    Debut
    Apr 2016
    Runs
    210
    Mentioned
    8 Post(s)
    Tagged
    0 Thread(s)
    They should offer (optional )to pay in Bitcoin will attract a lot of young players specially when btc is expected to hit 100 k by the end of year.

  21. #21
    Debut
    Oct 2010
    Runs
    8,042
    Mentioned
    154 Post(s)
    Tagged
    1 Thread(s)
    likely ramiz is sending some more money the franchise way assuming they'll scrap the draft and use the excess money for an auction system.

  22. #22
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by ElRaja View Post
    likely ramiz is sending some more money the franchise way assuming they'll scrap the draft and use the excess money for an auction system.
    PCB needs to find new Franchises now. I don't think these business owners are really able to uplift their franchises anymore. As it is they have a very part time attitude towards the franchises where they shut up shop for 10 months in the year and then only start working when the PSL is around the corner. They have done zero work when it comes to merchandising, building a loyal marketable fan base and find new sponsors for themselves.

  23. #23
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    Quote Originally Posted by Savak View Post
    According to ESPN Cricinfo, the production costs are divided equally among the franchises but the PCB takes care of the officials. I agree with you, unless the PCB hits a big bonanza on their next 3 year broadcast deal, the PSL's current economics do not look profitable or sustainable
    Tbf its the franchisee who paid OTT money.

    A mumbai franchisee is sold for 110mn usd, with the IPL broadcast deal at 1.1bn usd in 2008. Valuing Karachi at 25mn with PSL tv deal at 36mn in 2019 makes no economic sense.

    Anything over 1 to 1.2mn will not make any sense because at present the central revenue pool share of a franchise wont exceed 3.5mn max.

    On top of that PCB greedily added 1 more team.

  24. #24
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    Quote Originally Posted by Savak View Post
    PCB needs to find new Franchises now. I don't think these business owners are really able to uplift their franchises anymore. As it is they have a very part time attitude towards the franchises where they shut up shop for 10 months in the year and then only start working when the PSL is around the corner. They have done zero work when it comes to merchandising, building a loyal marketable fan base and find new sponsors for themselves.
    PCB has to take some blame here. Any league's 80 per cent revenue is the Tv deal. PCB really haven't got a good tv deal.

    Secondly, to rake in the money they got a 6th franchisee and that means one more share from the revenue pool, which anyway was not very big.

  25. #25
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by cricketjoshila View Post
    PCB has to take some blame here. Any league's 80 per cent revenue is the Tv deal. PCB really haven't got a good tv deal.

    Secondly, to rake in the money they got a 6th franchisee and that means one more share from the revenue pool, which anyway was not very big.
    Well the PSL broad cast deal from 2015 to 2017 was $10 million, the Broad cast deal from 2018 to 2021 was $36 million. You have to factor in the fact that the league does not have the IPL Marque A plus elite players playing for all the team teams consistently for 2 months in a year, a league which does not have its own window, a league which was played outside Pakistan and has not fully enjoyed a full home season at home. Considering the circumstances i think $36 million was a miraculous effort considering the Big 4 international team hadn't toured Pakistan for 10 plus years. Will be interesting to see what the PCB can negotiate with the broadcasters for the next 3 years

  26. #26
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    Quote Originally Posted by Savak View Post
    Well the PSL broad cast deal from 2015 to 2017 was $10 million, the Broad cast deal from 2018 to 2021 was $36 million. You have to factor in the fact that the league does not have the IPL Marque A plus elite players playing for all the team teams consistently for 2 months in a year, a league which does not have its own window, a league which was played outside Pakistan and has not fully enjoyed a full home season at home. Considering the circumstances i think $36 million was a miraculous effort considering the Big 4 international team hadn't toured Pakistan for 10 plus years. Will be interesting to see what the PCB can negotiate with the broadcasters for the next 3 years
    They have franchisee paying them 5mn a year for a team and even that amount cannot be recouped from the share of the revenue pool.

    Dont you think something was terribly wrong in how PCB fixed the reserve price for the 6th team?

  27. #27
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by cricketjoshila View Post
    They have franchisee paying them 5mn a year for a team and even that amount cannot be recouped from the share of the revenue pool.

    Dont you think something was terribly wrong in how PCB fixed the reserve price for the 6th team?
    The sixth team was sold for $6.35 million per year. It was the highest bid after one of $3.5 million. The PCB reserved a price of $5.55 million for the sixth team. Anyone would have accepted it.

    When the PSL was launched in 2015, the max it got was $2.5 million per year for Karachi Kings.

    I actually read a news report where the PSL Franchise officials mentioned that the reason why they are scared of growing their franchises and brands is because the PCB signed ten year contracts with them and once that ten year period is up, the PCB will demand much higher valuation prices from them

  28. #28
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    LAHORE: Finally, the franchises of the HBL Pakistan Super League (PSL) have succeeded in convincing the Pakistan Cricket Board (PCB) about their financial losses to get considerable relief from the seventh edition of the competition to be held in January 2022.

    “Taking into the account legal and contractual framework, the PCB has offered a new financial model to the franchisees with the sole purpose of supporting and resolving their concerns. The PCB expects the franchisees to accept this offer so that we can switch our focus on strengthening the HBL PSL brand,” read a press release issued after the meeting between PCB chairman Ramiz Raja and the franchises’ owners here on Monday.

    “As part of its commitment and resolve to assist and support the franchises so that they can continue to play their crucial role in the growth of cricket in Pakistan, the PCB has offered the following to the six franchisees: Covid-19 relief for HBL PSL 5 and 6; Increased share from the Central Pool of Revenue (CPR) for HBL PSL 7 to 20, Fixation of Dollar rate,” the press release concluded.

    It is learnt that the increase in the CPR offered to the franchises is 90 per cent plus of the total revenue, which was 80 in the past.

    Moreover, the main issue is related to the fixation of US dollar, which has sky-rocketed during the last three years, increasing from Rs100 per US$ to Rs170. The discussion was held to fix the rate at 136 per US$, till the next 14 editions.

    Moreover, as the Covid-19 has hindered the last two editions of the PSL (5 and 6) as both were postponed, it created problems for the franchises in dealing with their foreign players’ remuneration issues. Now the PCB will also help out the franchises in this regard, besides bearing all the incremental cost of the last edition, which had to be shifted from Pakistan to the UAE midway due to the emergence of Covid-19 cases in Karachi during March 2021.

    It may be mentioned here that the franchises claim that they are facing financial losses but the PCB is earning profits, according to the existing financial model, which the former signed in 2015 for a period of ten years.

    Published in Dawn, September 28th, 2021
    Last edited by MenInG; 28th September 2021 at 12:35.

  29. #29
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    How will this fixed uss to pkr thing work

    Secondly, who will absorb the losses? Players?

  30. #30
    Debut
    Oct 2016
    Runs
    24,104
    Mentioned
    571 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by cricketjoshila View Post
    They have franchisee paying them 5mn a year for a team and even that amount cannot be recouped from the share of the revenue pool.
    Title sponsorship is also a decent sum usually for leagues if I am not wrong which will be renewed as well this year alongside the broadcast deal. Not to forget individual team sponsorships.

    When the 6th team came in the broadcasting rights were sitting at USD 36 mln as Savak mentioned in comparison to 10 for the previous tenure so naturally the reserve price of 6th team was up.

  31. #31
    Debut
    Oct 2016
    Runs
    24,104
    Mentioned
    571 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by cricketjoshila View Post
    How will this fixed uss to pkr thing work

    Secondly, who will absorb the losses? Players?
    Players are paid in USD, they wont be incurring the losses as they will be paid the amount mentioned in their contracts like before. So players have nothing to do with this.

    As per my understanding it is PCB which will incur losses or profits unless they have some hedging mechanism in place. PCB made profits on exchange rate in last 5 years when it went from 105-170 as it wasnt fixed then and franchises had to pay whatever the rate was.

    Fixing it for 14 years is a big time line and PKR/USD can vary during this period and there can potentially be some years where the rate goes down below 136 and then PCB can be making profits on this fixed rate or absorb or hedge for when rate goes up.
    Last edited by Titan24; 28th September 2021 at 16:58.

  32. #32
    Debut
    Jun 2017
    Runs
    1,741
    Mentioned
    59 Post(s)
    Tagged
    1 Thread(s)
    That broadcast rights number makes no sense. Pakistan is about a 1/6th of India in terms of population. Per capita income is a bit less although you wouldn't guess it by the tone of many, many posters pointing out abject poverty in India.

    A simple calculation should tell you PSL rights should sell for 70 to 80 million USD a year. Granted the economy hasn't been in the best shape lately so maybe half of that figure - about 40 million USD - would make sense.

    But PCB gets 12 million USD a year. How? This only makes if Pakistan were 6-7 times poorer than India.

  33. #33
    Debut
    Dec 2010
    Venue
    Dubai, UAE
    Runs
    4,064
    Mentioned
    5 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by AMSS View Post
    That broadcast rights number makes no sense. Pakistan is about a 1/6th of India in terms of population. Per capita income is a bit less although you wouldn't guess it by the tone of many, many posters pointing out abject poverty in India.

    A simple calculation should tell you PSL rights should sell for 70 to 80 million USD a year. Granted the economy hasn't been in the best shape lately so maybe half of that figure - about 40 million USD - would make sense.

    But PCB gets 12 million USD a year. How? This only makes if Pakistan were 6-7 times poorer than India.
    Bro, population numbers don't directly correlate to economy

  34. #34
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    Quote Originally Posted by AMSS View Post
    That broadcast rights number makes no sense. Pakistan is about a 1/6th of India in terms of population. Per capita income is a bit less although you wouldn't guess it by the tone of many, many posters pointing out abject poverty in India.

    A simple calculation should tell you PSL rights should sell for 70 to 80 million USD a year. Granted the economy hasn't been in the best shape lately so maybe half of that figure - about 40 million USD - would make sense.

    But PCB gets 12 million USD a year. How? This only makes if Pakistan were 6-7 times poorer than India.
    Pakistan economy is less than a 10th of India. The growth rate is low, inflation is high, currency weaker and the security situation fluid.

  35. #35
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    According to reporters, Nadeem Omar threatened Ramiz and the PCB with legal action and said the PCB had no right to dictate to him and even suggest to him how to run his Franchise. Apparently the PCB had been taking the position for years with the Franchises that if you don't know how to run your affairs, if you can't make money, we will find someone else who can not only afford to buy you out but will also run the Franchise affairs better and these owners have no real answer apart from threatening legal action and making emotional statements i.e. we are the first time investors, we invested in the PSL when no one wanted too and were not willing too.

  36. #36
    Debut
    Nov 2020
    Runs
    3,389
    Mentioned
    29 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Savak View Post
    According to reporters, Nadeem Omar threatened Ramiz and the PCB with legal action and said the PCB had no right to dictate to him and even suggest to him how to run his Franchise. Apparently the PCB had been taking the position for years with the Franchises that if you don't know how to run your affairs, if you can't make money, we will find someone else who can not only afford to buy you out but will also run the Franchise affairs better and these owners have no real answer apart from threatening legal action and making emotional statements i.e. we are the first time investors, we invested in the PSL when no one wanted too and were not willing too.
    This is what I mean.

    If this guy had any iota of sense, he wouldn't let a guy as fat as Azam Khan on his team. Clear nepotism present.

    A lot of these owners have large egos and for what? PCB is certainly in the clear to add new franchises if it feels so; these owners need to be put in their places.

    It also has the right to tell franchise owners how to run their teams; if these owners have issues, feel free to part ways with the PSL brand.

    Over-emotional.

  37. #37
    Debut
    Jun 2017
    Runs
    1,741
    Mentioned
    59 Post(s)
    Tagged
    1 Thread(s)
    Quote Originally Posted by cricketjoshila View Post
    Pakistan economy is less than a 10th of India. The growth rate is low, inflation is high, currency weaker and the security situation fluid.
    You are partly right but still confused about the cause and effect. Pakistan has weak growth, high inflation etc etc and therefore they have an economy 1/10th the size of India.

    And therefore, their broadcast right should more or less be 1/10th of IPL - 50-55 million USD. But it's 12 million a year instead.

    Partly explained by the fact that PSL season has half the matches compared to IPL. But even so, it should be roughly 25 million USD a year.

    So either Pakistan's economic numbers are majorly cooked up or PSL has major room to grow domestically.

  38. #38
    Debut
    Jul 2016
    Runs
    1,036
    Mentioned
    1 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by AMSS View Post
    That broadcast rights number makes no sense. Pakistan is about a 1/6th of India in terms of population. Per capita income is a bit less although you wouldn't guess it by the tone of many, many posters pointing out abject poverty in India.

    A simple calculation should tell you PSL rights should sell for 70 to 80 million USD a year. Granted the economy hasn't been in the best shape lately so maybe half of that figure - about 40 million USD - would make sense.

    But PCB gets 12 million USD a year. How? This only makes if Pakistan were 6-7 times poorer than India.
    Lol things dont work out that linearly in the world

  39. #39
    Debut
    Jun 2017
    Runs
    1,741
    Mentioned
    59 Post(s)
    Tagged
    1 Thread(s)
    Quote Originally Posted by Ahmad-GERMANFC View Post
    Lol things dont work out that linearly in the world
    That's a nice cliche to utter, has a nuanced and profound feel to it too.

    But I am afraid in economics, consumption, market based pricing etc etc, things work more or less analogous and linearly across different countries. I mean, this is bread and butter stuff in economics. The Big Mac index is the living proof of it.
    Last edited by AMSS; 29th September 2021 at 11:37.

  40. #40
    Debut
    Oct 2004
    Runs
    175,291
    Mentioned
    2927 Post(s)
    Tagged
    22 Thread(s)
    According to reports, Pakistan Super League franchises are not happy with Ramiz Raja.

    Multan Sultans have requested the chairman to fix the US dollar rate on the franchises annual fees and have also asked for a financial relief for the last two editions of the league, both of which have been badly hit by the Covid-19 pandemic.

    The PCB chairman, reportedly, didn’t pay heed to the concerns of franchises.


    For the latest updates on Cricket, follow @PakPassion on Twitter

  41. #41
    Debut
    Jun 2001
    Runs
    88,106
    Mentioned
    2252 Post(s)
    Tagged
    27 Thread(s)
    When I saw this from Ramiz, I knew Wasim Khan's days were numbered at the PCB.

    It was almost like Wasim had been demoted recently.



  42. #42
    Debut
    Jan 2018
    Runs
    1,395
    Mentioned
    67 Post(s)
    Tagged
    1 Thread(s)
    Quote Originally Posted by Saj View Post
    When I saw this from Ramiz, I knew Wasim Khan's days were numbered at the PCB.

    It was almost like Wasim had been demoted recently.
    Saj seems like Ramiz being too generous. How is that fair that the franchises take 90 percent of the revenue and the PCB looks after most of the tournament costs and walks away with hardly 10 percent of the revenue?

  43. #43
    Debut
    Nov 2019
    Runs
    2,435
    Mentioned
    76 Post(s)
    Tagged
    2 Thread(s)
    Quote Originally Posted by Savak View Post
    According to reporters, Nadeem Omar threatened Ramiz and the PCB with legal action and said the PCB had no right to dictate to him and even suggest to him how to run his Franchise. Apparently the PCB had been taking the position for years with the Franchises that if you don't know how to run your affairs, if you can't make money, we will find someone else who can not only afford to buy you out but will also run the Franchise affairs better and these owners have no real answer apart from threatening legal action and making emotional statements i.e. we are the first time investors, we invested in the PSL when no one wanted too and were not willing too.
    This was always going to happen. Someone like Imran should pull Rameez Raja and give him a dressing down. He is just spoiling the good will built by PCB across years and straining relationships right, left and center.

  44. #44
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by MenInG View Post
    According to reports, Pakistan Super League franchises are not happy with Ramiz Raja.

    Multan Sultans have requested the chairman to fix the US dollar rate on the franchises annual fees and have also asked for a financial relief for the last two editions of the league, both of which have been badly hit by the Covid-19 pandemic.

    The PCB chairman, reportedly, didn’t pay heed to the concerns of franchises.
    Didn't the PCB provide this as per their press release?

  45. #45
    Debut
    Dec 2013
    Venue
    Connecticut
    Runs
    5,915
    Mentioned
    953 Post(s)
    Tagged
    3 Thread(s)
    Quote Originally Posted by Savak View Post
    By keeping the Dollar fixed at $105 when the Dollar is touching $170. Who is going to suck up the $65 loss?
    Use derivatives to hedge against the dollar. A risk manager should be able to do that.

  46. #46
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Ramiz infuriates PSL franchise owners in General Council meeting: sources

    They have threatened to go to court again

    The Pakistan Super League franchise owners were left infuriated after Pakistan Cricket Board chairperson Ramiz Raja took a rigid stance over their demands in the PSL General Council on Monday.

    The franchise owners have been demanding for changes in the PSL’s financial model with only two of the six teams breaking even after six editions, while others still suffering losses.

    During Monday’s meeting, Quetta Gladiators owner Nadeem Omar categorically asked Ramiz to resolve issues on priority basis. Ramiz, according to sources, responded rudely.

    Multan Sultan’s representative Haider Azhar also urged Ramiz to adjust the Dollar rate but Ramiz told him that was not possible at all. “I don’t want to go to the NAB,” the PCB chief was quoted as saying by sources.

    Peshawar Zalmi owner Javed Afridi warned Ramiz that the next three months were crucial ahead of the PSL’s seventh season. “Do you want to scare me talking about the next three months?” Ramiz asked Afridi.

    The owners told Ramiz they will go to court if matters are not resolved. Sources said Ramiz had told the owners to “take or leave” the offer that was made to them, which included increased share from the PSL revenue pool, fixation of the Dollar rate and Covid-19 relief for PSL 5 and 6.

    Ramiz also turned down the franchise owners’ demand of a separate secretariat for the PSL.

    The meeting ended after a heated argument. Ramiz has told the franchises to decide about PCB’s offer within a week.

    Link: https://www.samaa.tv/sports/cricket/...eting-sources/
    Last edited by Saj; 29th September 2021 at 22:42.

  47. #47
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    Quote Originally Posted by Savak View Post
    Ramiz infuriates PSL franchise owners in General Council meeting: sources

    They have threatened to go to court again

    The Pakistan Super League franchise owners were left infuriated after Pakistan Cricket Board chairperson Ramiz Raja took a rigid stance over their demands in the PSL General Council on Monday.

    The franchise owners have been demanding for changes in the PSL’s financial model with only two of the six teams breaking even after six editions, while others still suffering losses.

    During Monday’s meeting, Quetta Gladiators owner Nadeem Omar categorically asked Ramiz to resolve issues on priority basis. Ramiz, according to sources, responded rudely.

    Multan Sultan’s representative Haider Azhar also urged Ramiz to adjust the Dollar rate but Ramiz told him that was not possible at all. “I don’t want to go to the NAB,” the PCB chief was quoted as saying by sources.

    Peshawar Zalmi owner Javed Afridi warned Ramiz that the next three months were crucial ahead of the PSL’s seventh season. “Do you want to scare me talking about the next three months?” Ramiz asked Afridi.

    The owners told Ramiz they will go to court if matters are not resolved. Sources said Ramiz had told the owners to “take or leave” the offer that was made to them, which included increased share from the PSL revenue pool, fixation of the Dollar rate and Covid-19 relief for PSL 5 and 6.

    Ramiz also turned down the franchise owners’ demand of a separate secretariat for the PSL.

    The meeting ended after a heated argument. Ramiz has told the franchises to decide about PCB’s offer within a week.

    Link: https://www.samaa.tv/sports/cricket/...eting-sources/
    Sources said Ramiz had told the owners to “take or leave” the offer that was made to them, which included increased share from the PSL revenue pool, fixation of the Dollar rate and Covid-19 relief for PSL 5 and 6.

    What more do the franchisee want?

    90 per cent of revenues are going to the franchisee.
    Last edited by Saj; 29th September 2021 at 22:43.

  48. #48
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by cricketjoshila View Post
    Sources said Ramiz had told the owners to “take or leave” the offer that was made to them, which included increased share from the PSL revenue pool, fixation of the Dollar rate and Covid-19 relief for PSL 5 and 6.

    What more do the franchisee want?

    90 per cent of revenues are going to the franchisee.
    Sources say some Franchises are demanding that their fees be reduced or done away with to which the PCB responded why did you buy a team if you can't afford it? What is in it for us if you guys want to take everything and leave us with nothing?

  49. #49
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    Quote Originally Posted by Savak View Post
    Sources say some Franchises are demanding that their fees be reduced or done away with to which the PCB responded why did you buy a team if you can't afford it? What is in it for us if you guys want to take everything and leave us with nothing?
    I told you, anything above 1mn usd as franchise fees doesn't make economic sense.

    Now if they cannot pay what they bid, then they must surrender the franchise.

  50. #50
    Debut
    Jun 2001
    Runs
    88,106
    Mentioned
    2252 Post(s)
    Tagged
    27 Thread(s)
    This is not heading in the right direction.

    Could be a stalemate ahead of PSL7.



  51. #51
    Debut
    Oct 2004
    Runs
    175,291
    Mentioned
    2927 Post(s)
    Tagged
    22 Thread(s)
    Quote Originally Posted by Saj View Post
    This is not heading in the right direction.

    Could be a stalemate ahead of PSL7.
    Nadeem Omar refutes reports of heated exchange with Ramiz Raja

    KARACHI: The Quetta Gladiators owner Nadeem Omar has refuted reports circulating in media that he and Pakistan Cricket Board (PCB) Chairman Ramiz Raja had heated exchange in recent Pakistan Super League (PSL) governing council meeting.

    Nadeem Omar said that there was extensive discussion between franchise owners and PCB Chairman but there was never a moment when things got heated between us.

    “I want to categorically say that I never had any heated exchange with Ramiz Raja in PSL governing council meeting and both have mutual respect for eachother,” Nadeem said.

    “When stakes our so high and so much investment has been put in then there will be differences as both parties have got their own opinions. PSL is a national brand and collectively we need to make it even bigger and better”.

    Nadeem hoped that both franchises and the PCB will come out with a solution which will have long-term benefits for all stakeholders of the PSL.


    For the latest updates on Cricket, follow @PakPassion on Twitter

  52. #52
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    I wonder if the people in the PCB who feel threatened by Ramiz's no nonsense, straight shooting and your out style are throwing these rumours out to put him under pressure?

  53. #53
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    PSL franchise owners unhappy with PCB's new financial model: source

    Sports

    Abdul Mohi Shah

    September 30, 2021

    PSL franchise owners to hold important meeting today, decide collectively on PCB's new financial model

    PSL franchise owners to hold important meeting today, decide collectively on PCB's new financial model.Franchise owners not happy with board's policy to distribute profits equally.Multan Sultans reportedly owe the largest annual fee amount to the PCB— $6.5 million.

    LAHORE: The Pakistan Super League (PSL) franchise owners are unhappy with the PCB's "take it or leave it" offer for them, and will convene an important meeting today to take a collective decision on the new financial model proposed by the board.

    A report in The News quoted a source close to one of the franchise owners who said that the PCB's "take it or leave it" financial package offer had caused offense to them.

    "Take it or leave it — is something that is an offensive option. That option was given to us by the new PCB management. Not all our concerns have been addressed in the document we received. Though we were expecting a better deal following Monday’s meeting, we did not get the same paper in black and white," revealed the source.

    The source said the PSL franchise owners were expecting their issues to be resolved in their meeting with Ramiz Raja. "That did not turn out to be the case. Now we have to discuss the entire package in a meeting before coming out with a collective stance," he added.

    How much does each franchise owe the PCB?

    The bone of contention for the franchise owners and the board, as per the source, is the annual fee collected by the PCB. The PCB wants the fee deposited by the franchise owners in advance for the seventh league to function smoothly.

    The Multan Sultans reportedly owe the largest annual fee amount to the PCB— $6.5 million followed by the Karachi Kings, who owe the board $2.6 million, while the Lahore Qalandars have to pay $2.5 million dollars.

    Islamabad United and Peshawar Zalmi have to pay $1.5 million each while the Quetta Gladiators have to cough up $1.1 million, the lowest amount.

    Every franchise has a different amount of money to pay to the board but when it comes to profit-sharing, they all have the same share. The franchise owners are reportedly not happy with this aspect of the financial model.

    The source said that five franchises signed contracts when the PSL was a "baby" but had now grown into a huge sports event in Pakistan.

    "I am talking about the five franchises which signed the initial contracts. At that time the PSL was just a baby. We took a risk, invested a heavy amount and yet are getting equal profits. This issue has to be addressed,” one of the owners, when contacted, said.

    He added that the PSL required a solid base which is missing. "It is no longer a baby hence solid and practical rules are required to give it a professional look."

    'PCB's hands are tight'

    "The PCB has done the best it could do but when it comes to contractual issues, the PCB's hands are tight," a source within the PCB, when contacted, said.

    He was tight-lipped as to what would happen in case these franchises refuse to accept the new package.

    https://www.geo.tv/amp/373192-psl-fr...-pcbs-financia

  54. #54
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Someone needs to tell the Franchises to **** and that the PCB is going to negotiate a new broadcast and title sponsorship package this year. This blurbering and threats against the PCB about the league only hurts the PSL. If they came in expecting a quick buck with zero effort from their side then they entered into the wrong business

  55. #55
    Debut
    Mar 2016
    Runs
    7,916
    Mentioned
    98 Post(s)
    Tagged
    1 Thread(s)
    Quote Originally Posted by world cup captain View Post
    Use derivatives to hedge against the dollar. A risk manager should be able to do that.
    Rupee hedges against the dollar are prohibitively expensive and importantly the duration of the hedge (available swaps) is too short-term for it to protect against medium-term volatility.

  56. #56
    Debut
    Apr 2015
    Runs
    2,480
    Mentioned
    158 Post(s)
    Tagged
    0 Thread(s)
    Need 2 more teams but those 2 owners should be Shahid Khan level maybe him who will be willing to give 100 million dollar each team. One team should be from Sind maybe Hyderabad and one should be resurrection of Sialkot Stallions.

  57. #57
    Debut
    Oct 2016
    Runs
    24,104
    Mentioned
    571 Post(s)
    Tagged
    0 Thread(s)

    PSL franchises accept PCB offer

    Lahore, 11 October 2021: Pakistan Cricket Board today announced that the six Pakistan Super League franchises have accepted the offer, which was presented to them during last month’s Governing Council meeting in Lahore.

    Some of the salient terms of the offer, which the six franchises have accepted, include:

    - Covid-19 relief for HBL PSL 5 and 6
    - Upward revision of Central Pool of Revenue in favour of the franchises for HBL PSL 7–20
    - Locking of Dollar rate with prospective effect

    PCB Chairman Mr Ramiz Raja welcomed the resolution: “The longstanding matters between the PCB and the franchises were causing distraction and affecting the reputation of the brand. 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.”

    The franchise owners, in a joint statement, said: “HBL PSL is very close to our hearts. Since 2016, we all have worked very hard to bring it to where it is today. The acceptance of the PCB offer is an indication of our commitment and resolve to making the HBL PSL a bigger and better league that is participated by the best players, commercially supported by the elite companies and watched live by the passionate cricket fans in Pakistan as well as globally.”

    https://www.pcb.com.pk/press-release...pcb-offer.html

  58. #58
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    PCBs desperation is poor. They should just shut down the PSL if they are giving everything away to the Franchises

  59. #59
    Debut
    Mar 2011
    Runs
    38,422
    Mentioned
    1941 Post(s)
    Tagged
    11 Thread(s)
    Quote Originally Posted by Savak View Post
    PCBs desperation is poor. They should just shut down the PSL if they are giving everything away to the Franchises
    Well they make 13-14mn from franchisee fees.

  60. #60
    Debut
    Jul 2006
    Runs
    6,672
    Mentioned
    49 Post(s)
    Tagged
    1 Thread(s)
    They should add two more teams to increase the revenue

  61. #61
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by Muhammad Saad View Post
    They should add two more teams to increase the revenue
    The PCB has agreed with the Franchises no new teams will be added to the PSL till the tenth edition.

  62. #62
    Debut
    Oct 2004
    Runs
    175,291
    Mentioned
    2927 Post(s)
    Tagged
    22 Thread(s)
    According to media reports, there was an angry exchange between Ramiz Raja and PSL owners. The chairman had a heated exchange with the franchises owners, where Raja called them ‘intruders’.

    “PSL is our home and you guys are intruders - You have destroyed windows and doors of our home.”

    Quetta Gladiators owner Nadeem Omer replied that PSL existed because of the franchises - “We are the investors of the league - We have six successful seasons of the league and it is our home.”

    The PCB chairman inquired from PSL's Imran Ahmed Khan about why renowned T20 cricketers like Australia’s Glen Maxwell don't feature in the PSL and he replied that "We have invited them many times, but they refuse to play in Pakistan"


    For the latest updates on Cricket, follow @PakPassion on Twitter

  63. #63
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by MenInG View Post
    According to media reports, there was an angry exchange between Ramiz Raja and PSL owners. The chairman had a heated exchange with the franchises owners, where Raja called them ‘intruders’.

    “PSL is our home and you guys are intruders - You have destroyed windows and doors of our home.”

    Quetta Gladiators owner Nadeem Omer replied that PSL existed because of the franchises - “We are the investors of the league - We have six successful seasons of the league and it is our home.”

    The PCB chairman inquired from PSL's Imran Ahmed Khan about why renowned T20 cricketers like Australia’s Glen Maxwell don't feature in the PSL and he replied that "We have invited them many times, but they refuse to play in Pakistan"
    Ramiz with his badtameez arrogant self inflated nature is going to destroy bridges that the PCB has built over the years. His tenure as CEO from 2003-2004 was filled with controversy after which he had to resign. If ramiz carries on like this, don't be surprised to see people put pressure on IK to make a u turn on his appointment

  64. #64
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Maxwell doesn't play in the PSL because he gets paid an avg of $1.5 million per IPL season for doing nothing. The PSL in return will not keep paying him $150,000-$250,000 per psl season without performance as the likes of Chris Gayle, Brendon Mccullam found out

  65. #65
    Debut
    Aug 2017
    Runs
    4,034
    Mentioned
    127 Post(s)
    Tagged
    2 Thread(s)
    Quote Originally Posted by MenInG View Post
    According to media reports, there was an angry exchange between Ramiz Raja and PSL owners. The chairman had a heated exchange with the franchises owners, where Raja called them ‘intruders’.

    “PSL is our home and you guys are intruders - You have destroyed windows and doors of our home.”

    Quetta Gladiators owner Nadeem Omer replied that PSL existed because of the franchises - “We are the investors of the league - We have six successful seasons of the league and it is our home.”

    The PCB chairman inquired from PSL's Imran Ahmed Khan about why renowned T20 cricketers like Australia’s Glen Maxwell don't feature in the PSL and he replied that "We have invited them many times, but they refuse to play in Pakistan"
    The reason why the Maxwells of this world don’t play PSL is because they have their domestic season going on at that time and they actually give importance to their own domestic cricket before anyone else. The rest is just sensationalist reporting.

  66. #66
    Debut
    Oct 2016
    Runs
    1,411
    Mentioned
    2 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Angrez Pakistani View Post
    The reason why the Maxwells of this world don’t play PSL is because they have their domestic season going on at that time and they actually give importance to their own domestic cricket before anyone else. The rest is just sensationalist reporting.
    Its all about the money; and the timing of PSL which comes before IPL
    No player would want to sacrifice million $ earnings for 100k $ .. what if player gets injured during PSL, and cant recover fully for IPL?

  67. #67
    Debut
    Oct 2016
    Runs
    1,411
    Mentioned
    2 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by iniqbal223 View Post
    Its all about the money; and the timing of PSL which comes before IPL
    No player would want to sacrifice million $ earnings for 100k $ .. what if player gets injured during PSL, and cant recover fully for IPL?
    And then there is an extra baggage of playing matches in Pakistan. Which most of SENA players + WI + SL + others are still not comfortable with

    What we see is players of following categories : like retired/veteran players, out of sorts/fringe players, T20 mercaeries (from WI) ae the one who could play..

    else no chance for so low salary and putting their lives/careers at risk

  68. #68
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by Angrez Pakistani View Post
    The reason why the Maxwells of this world don’t play PSL is because they have their domestic season going on at that time and they actually give importance to their own domestic cricket before anyone else. The rest is just sensationalist reporting.
    I will test this argument if the Australian domestic season clashes with the IPL

  69. #69
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Read a report that with the new PSL model, the likes of Quetta, Peshawar, Islamabad United are expecting to earn Profits of Rs 500 million and above. However Karachi, Lahore and Multan Sultans will still be incurring losses because of high Franchise Fees

  70. #70
    Debut
    Dec 2013
    Runs
    12,968
    Mentioned
    978 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by Savak View Post
    Read a report that with the new PSL model, the likes of Quetta, Peshawar, Islamabad United are expecting to earn Profits of Rs 500 million and above. However Karachi, Lahore and Multan Sultans will still be incurring losses because of high Franchise Fees
    That's around $2mil.

    Well done to those franchises!!

  71. #71
    Debut
    Oct 2004
    Runs
    175,291
    Mentioned
    2927 Post(s)
    Tagged
    22 Thread(s)
    The Pakistan Super League(PSL) franchises will finally be delighted after the new changes that have been inhibited into the financial model by the PCB. Ramiz Raja, the new PCB chairman has been doing a fantastic job so far in setting up the right platform for the game’s development in the country and the financial issues in PSL have been one of the talking points for a long time.

    The new model will definitely work hugely in favor of certain franchises like Quetta Gladiators, Peshawar Zalmi, and Islamabad as they have been paying less when compared to Multan Sultans or the Lahore Qalandars. According to the new model, the central revenue pool has been increased as the PCB board has decided to give 95 percent of the revenue to the franchises following the complaints.

    Earlier, the PSL brand value had been around PKR 75,000 at the start while it has increased now to around PKR 1.3 million. According to sources from Cricket Pakistan, PCB did a television rights deal for PKR 4,350,786,786 while they bagged title sponsorship rights for around PKR 3.5 Billion. The live-streaming rights saw an increase of 175 percent which is massive for the popularity of the tournament going forward.

    It is estimated that the Karachi Kings will also have a substantial profit in the new model despite them taking the Television right expenses. All these benefits have been possible only due to the introduction of Ramiz into the PCB committee which had earlier offered very less profits for the franchises. A lot of overseas players will now look into taking part in the tournament with the financial profits looking promising.

    The PSL 2021-2022 season is scheduled to take place from the 27th of January to the 27th of February. The defending champions Karachi Kings will take on the Multan Sultans in the opening encounter. The venues for the tournament will be Lahore and Karachi due to the current Covid-19 situation getting worse. Shahid Afridi at 46 years of age will be playing this PSL season as he announced earlier.

    https://www.crictracker.com/psl-2022...nancial-model/


    For the latest updates on Cricket, follow @PakPassion on Twitter

  72. #72
    Debut
    Apr 2013
    Runs
    4,509
    Mentioned
    514 Post(s)
    Tagged
    1 Thread(s)
    Quote Originally Posted by Savak View Post
    Read a report that with the new PSL model, the likes of Quetta, Peshawar, Islamabad United are expecting to earn Profits of Rs 500 million and above. However Karachi, Lahore and Multan Sultans will still be incurring losses because of high Franchise Fees
    They should have introduced weighted revenues, the more expensive the franchise, the bigger the revenue share.

    There's literally incentive to remain a cheap and small franchise in this model.


    Azaadi. InshAllah.

  73. #73
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by GoUgandaCranes View Post
    They should have introduced weighted revenues, the more expensive the franchise, the bigger the revenue share.

    There's literally incentive to remain a cheap and small franchise in this model.
    Tbh, the Central Kitty Pool i.e. Broadcast, Title Sponsorship, Gate Receipts and Other Sponsorships should be distributed in accordance with the PSL points table at the end of every season. This will really drive the Franchises to up their game, make as many merit based cricketing decisions as possible and end nepotistic and friendship, family based selections. The value of the Franchise should reflect its performances on the field.

  74. #74
    Debut
    Oct 2013
    Runs
    1,234
    Mentioned
    7 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Savak View Post
    Tbh, the Central Kitty Pool i.e. Broadcast, Title Sponsorship, Gate Receipts and Other Sponsorships should be distributed in accordance with the PSL points table at the end of every season. This will really drive the Franchises to up their game, make as many merit based cricketing decisions as possible and end nepotistic and friendship, family based selections. The value of the Franchise should reflect its performances on the field.

    I don't understand this. Why would a private, profit-driven franchise prioritize nepotism, friendship and family based selections? Is it unique to some franchises in PSL or have you noticed this with other franchises in other cricket leagues around the world? It sounds so counter productive for any franchise to not run based on merit. It's suicidal.

  75. #75
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Quote Originally Posted by leonidas_alexandar View Post
    I don't understand this. Why would a private, profit-driven franchise prioritize nepotism, friendship and family based selections? Is it unique to some franchises in PSL or have you noticed this with other franchises in other cricket leagues around the world? It sounds so counter productive for any franchise to not run based on merit. It's suicidal.
    It is just part of Pakistani culture. The departments in Pakistani domestic cricket were selecting players close to their mid 30's, even 40 who had no future with Pakistan over youngsters, similarly you had batsmen averaging in the low to mid 20's being selected by these departments again and again every season. These Franchises are still owned by small business families and not a lot of stakeholders are keeping them under check. I wish there were shareholders who could ask tough questions from Franchise Owners, the Captains and Coaches over Franchise Selections. There is zero excuse for someone like Aqib Javed to still have a job at Lahore Qalanders.

  76. #76
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    HBL PSL franchises to earn massive profit under new financial model

    Some franchises will have profit of at least PKR500million while others will have little amount left in their tank

    Saleem Khaliq in Karachi

    10 January, 2022

    The time has come for HBL Pakistan Super League (PSL) franchises to reload their coffers as most of them will be profited massively after the changes in the financial model.

    Under the new financial model, Pakistan Cricket Board (PCB) have decided to give 95 per cent of the revenue to the franchisees.

    Title sponsorship, broadcasting rights and commercial agreements are the reason behind this. PCB Chairman Ramiz Raja has played a main role because PSL franchises have been stating since the start of the league that they are incurring losses.

    They demanded to change the model and the case also went to court while Ehsan Mani was the chairman of the PCB but the stakeholders opted to talk.

    There were various models under consideration but there was a change in the PCB regime and Ramiz Raja tried to dig out the solution positively. At last, both the parties agreed on a new model where franchises will get 95 per cent of the revenue while PCB will receive the remaining.

    According to sources, many franchises will be benefited and they can also cover the previous losses. PCB did a television rights' deal for PKR4,350,786,786 while they bagged title sponsorship rights for around PKR3.5Billion. The live-streaming rights saw an increase of 175 per cent.

    The credit for this goes to Ramiz Raja, who listened to the franchises and met their demands. One franchise official told that after new agreements, the revenue in Central Pool will be increased and all the teams will get an advantage from it.

    If the franchises remove spendings which include players' travel and living expenses, salaries and other things, they will still get the huge sum this time around. Franchisees also receive PKR200million from sponsors with respect to brand value.

    They will have a profit of at least PKR500million. Sources told that Quetta Gladiators, Peshawar Zalmi and Islamabad will get benefits while the owners of Karachi Kings have acquired TV Rights, therefore after calculating all the expenses, they will also have an advantage.

    However, due to paying heavy fees of over PKR1billion, Multan Sultans along with Lahore Qalandars will have little amount left in their tank.

    An interesting fact to shed upon is the franchises that collectively fought against the PCB are now far from each other after meeting their own interests.

    Recently, two franchises were dealing for sponsorship with the same company but a third franchise jumped and did an agreement in a lesser amount

    PCB reminded franchises to pay fees for the second time, sources revealed that some have paid while PCB has the amount of others that has been deducted.

    It must be noted that there has been a massive increase in PSL's brand value. The estimation can be evaluated that at the start of the tournament that one minute cost around PKR75,000 but now it is selling around PKR1.3million.

    Link: https://cricketpakistan.com.pk/en/ne...inancial-model

  77. #77
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    Was watching an interesting discussion on Game On Hai where they were discussing the financial model of the PSL. The existing model obviously favors the low cost teams like Quetta, Peshawar, Islamabad because these teams will now get a significantly enhanced share of the central kitty pool in relation to the annual fees they are paying. The only two franchises that have really invested in their franchise are Lahore Qalandars and Peshawar Zalmi whereas the other remaining franchises are content with just waking up a month or two before the PSL and then go missing for the remaining 9-10 months during the year.

    Some of these small franchises are hessitant to invest in their franchises or to grow the Franchises because of the fear that they will have to pay higher fees to the PCB. The PCB in order to counter this have changed their terms with the Franchises where in exchange for the 95-98% share from the Central Pool, the Franchises will continue to pay their existing fees to the PCB + 20-30% of the increase in the FMV of the Franchise.

    I think the PCB perhaps should have held off on adding Multan Sultans to the league until the Broadcast revenues reached somewhere along $50-60 million. These Franchises all ultimately depend on the Broadcast revenue.

  78. #78
    Debut
    Feb 2006
    Runs
    41,314
    Mentioned
    520 Post(s)
    Tagged
    5 Thread(s)
    In addition to the PCB sharing 95% of the central pool with the franchises and hedging the dollar at $154, the PCB and the Franchises have also agreed to the following

    - The franchises wanted the PCB to give them rights in perpetuity but that is not part of the new model. As per the original contract franchises will have to pay an increased franchise fee [existing fee + 25% or 25% of market value of the franchise, whichever is higher].

    - In its new, final offer, the PCB has revised the franchise fee payment schedule and done away with the practice of paying player fees themselves and adjusting that amount from when they pay out from the central pool revenue. In this new model, the board is asking franchises to pay 50% of player fees in advance. The condition of putting forth a bank guarantee against the franchise fee has also been removed. The new payment structure will see franchises deposit 50% of the franchise fee two months before the start of the PSL, a further 25% one day before the start first match and the remaining 25% the day before the final match. If a franchise fails to keep to this schedule, a bank guarantee three months in advance will be reinstated for that particular franchise.

    - In a bid to attract foreign players, the PCB offered a lucrative package offering them more money out of the available purse. If annual net broadcast revenues (including live streams) exceed PKR 3 billion, any additional revenue of up to USD 0.5 million* will be used exclusively to procure elite players from the world. Presently top players at the PSL earn about USD 180,000 to 200,000. The new, higher amount paid to elite players will be over and above the agreed player cap agreed with the franchises. Thereafter, any amount in excess of USD 0.5 million will be shared 80:20 between the PCB and the franchises.

    - Any further franchise will not be launched till the tenth edition of the PSL.

  79. #79
    Debut
    Oct 2004
    Runs
    175,291
    Mentioned
    2927 Post(s)
    Tagged
    22 Thread(s)
    The Pakistan Cricket Board (PCB) has finalised the schedule for the Pakistan Super League (PSL) season eight without consulting the franchises.

    According to sources, the event will be held between February 15 and March 31.

    “There was no discussion between franchises and PSL management regarding the schedule but despite that it was finalised,” the franchises were quoted as saying by sources.

    The PCB has also decided that the 2023 tournament will take place at four venues in Pakistan — Karachi, Lahore, Multan and Rawalpindi.

    The schedule for PSL8 has been finalised bearing in mind New Zealand and West Indies’ tour of Pakistan in January 2023.

    Samaa


    For the latest updates on Cricket, follow @PakPassion on Twitter

  80. #80
    Debut
    Oct 2004
    Runs
    175,291
    Mentioned
    2927 Post(s)
    Tagged
    22 Thread(s)
    PCB expects only its share PSL 7 profit to be around Rs 2b+. At the same time, the PCB expects all franchisees to have also earned a reasonable profit.

    For the fiscal year ended, June 30th 2021, PCB had earned an operational profit of Rs 600M, against an approved budget deficit of Rs 2.2b. However, the management decided to provide financial assistance of roughly Rs 1.3B, to its PSL franchisees for their losses incurred in PSL 5 & PSL 6 due to covid out break. This financial assistance created an accounting loss for the year for PCB of roughly Rs 700m instead of the projected profit of Rs 600m.

    despite the covid related challenges faced by PCB for the last two years and for providing significant amount in financial assistance to its franchisees, PCB's financial position remains very strong. It's financial reserves have increased due to increase in recent revenues and due to reducion in its expenses.

    The financial results of PSL 7 will be shared with the PSL Franchisees next week. All financial information related to PSL 5 & PSL 6, have been timely provided to all relevant stakeholders.


    For the latest updates on Cricket, follow @PakPassion on Twitter

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •