PCB offers new terms to PSL franchises


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  1. #1
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    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
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    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
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    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
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    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 22:52.

  5. #5
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    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 22:58.

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    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.



  8. #7
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    PCB gets the franchise fees.

  9. #8
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    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.

  10. #9
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    Any news about the draft being replaced by an auction system?

  11. #10
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    Quote Originally Posted by Rana View Post
    Any news about the draft being replaced by an auction system?
    Nothing from PCB yet.



  12. #11
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    By keeping the Dollar fixed at $105 when the Dollar is touching $170. Who is going to suck up the $65 loss?

  13. #12
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    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.

  14. #13
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    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.

  15. #14
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    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.

  16. #15
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    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.

  17. #16
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    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.

  18. #17
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    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.

  19. #18
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    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?

  20. #19
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    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

  21. #20
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    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.


  22. #21
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    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.

  23. #22
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    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.

  24. #23
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    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.

  25. #24
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    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.

  26. #25
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    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

  27. #26
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    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?

  28. #27
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    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

  29. #28
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    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 13:35.

  30. #29
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    How will this fixed uss to pkr thing work

    Secondly, who will absorb the losses? Players?

  31. #30
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    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.

  32. #31
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    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 17:58.

  33. #32
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    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.

  34. #33
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    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

  35. #34
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    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.

  36. #35
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    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.

  37. #36
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    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.

  38. #37
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    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.

  39. #38
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    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

  40. #39
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    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 12:37.

  41. #40
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    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

  42. #41
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    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.



  43. #42
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    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?

  44. #43
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    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.

  45. #44
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    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?

  46. #45
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    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.

  47. #46
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    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 23:42.

  48. #47
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    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 23:43.

  49. #48
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    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?

  50. #49
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    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.

  51. #50
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    This is not heading in the right direction.

    Could be a stalemate ahead of PSL7.



  52. #51
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    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

  53. #52
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    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?

  54. #53
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    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

  55. #54
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    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

  56. #55
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    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.

  57. #56
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    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.

  58. #57
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    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

  59. #58
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    PCBs desperation is poor. They should just shut down the PSL if they are giving everything away to the Franchises

  60. #59
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    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.

  61. #60
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    They should add two more teams to increase the revenue

  62. #61
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    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.

  63. #62
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    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

  64. #63
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    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

  65. #64
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    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

  66. #65
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    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.

  67. #66
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    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?

  68. #67
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    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

  69. #68
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    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

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