Both parties are discussing the draft proposal for a more equitable financial model
The Pakistan Cricket Board (PCB) and the Pakistan Super League (PSL) franchises are discussing the draft proposal for a more equitable financial model, for the tournament, to redress the latter’s grievances.
According to sources, the PCB has offered the franchises, through the draft proposal, a 90 per cent share in all the commercial contracts, fixed dollar exchange rate of 164 for the next five years and the entire gate receipts.
In the current financial model, the franchises share is set at 95 per cent for television broadcast deal, which also includes bearing 95 per cent of the production costs. The share of broadcasting revenue is 80 per cent, meanwhile share of title and other sponsorships is set at 60 per cent. Franchises also get 70 per cent of the gate receipts.
On the other hand, the franchises urged the PCB to draw up a new contract, fixed the exchange rate at 104, equal to rate of the dollar in the first season, and reduce the franchise fee.
Responding to this, the PCB officials stated that forming a new contract is not legally possible while the other issues raised by the franchises will not go down well with Public Accounts Committee and other relevant authorities.
Sources also stated that one franchise owner asked the PCB to deduct the bank guarantee from the central pool but also raised question marks over why it was being asked for in the first place. The franchise had to submit the guarantee till Friday, this week, but the board is not likely to ask for it, in the near future, even if they fail to do so.
The discussions took place in a cordial atmosphere and both the parties agreed to resolve this matter before the end of October, inorder to ensure that the remaining PSL 5 matches and the next season of the league are not affected.
“PCB presented to the team owners a draft proposal which has been put together at the behest of the franchises who requested that the PCB explore a more equitable model. Both sides agreed to delve deeper into the proposed model with their respective financial and operational teams over the coming weeks and aim to resolve outstanding concerns and find a mutually beneficial position as soon as possible,” the PCB had said in a statement on Wednesday.
Earlier, the franchises had filed a case against the PCB in the Lahore High Court (LHC) after suffering major losses, due to the current financial model, over the course of last five years.
Later, in the proceedings before the Lahore High Court (LHC) an out-of-court settlement was agreed between the parties to deliberate and discuss the disagreements and other issues associated with the structure of the PSL.