HBL PSL financial model: Franchises’ request for deadline extension accepted

The Pakistan Cricket Board (PCB) has accepted the HBL Pakistan Super League (PSL) franchises’ request to extend the deadline for taking a decision with regards to the new financial model. All six teams are now allowed to make a call on the model till October 11.

According to sources, the franchises are still assessing the revised model and need more time to reach a decision.

The team owners are still concerned about the dollar exchange rate, which currently stands at 171. The franchises want the exchange rate to be fixed at 138, which was decided in December 2020’s governing council meeting, as it increases the burden of fees.

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The franchises have also requested the PCB to avoid including new teams before the league makes a profit around four billion rupees.

Sources added that PCB has also gone back on its decision to bear 50 per cent production costs for PSL 5. Franchises have also been asked to submit players’ fees in advance, which was previously deducted from central pool of revenue.  

The franchises also had meeting with interim Chief Executive Officer (CEO) Salman Naseer and Chief Financial Officer (CFO) Javed Murtaza to share their reservations, however no guarantees were provided.

Key elements of the proposed financial model:

• Franchises will get 95 per cent share, after excluding expenses, from the central pool of revenue
• The dollar rate, at the time when the model is approved, will be fixed for franchise fee
• Franchises won’t be given permanent rights (10-year agreement will remain intact)
• Independent valuation of franchises will be carried out after four years. The estimated value will be used to increase franchise fee by 25 per cent
• Covid-19 relief for HBL PSL 5 and 6 (98 per cent of share from central pool of revenue)