PCB seeks to boost finances with new PSL teams

The Pakistan Cricket Board (PCB) is keen to boost its finances by adding new teams to the HBL Pakistan Super League (PSL). The board hopes to sell a new team for 2 to 2.5 billion rupees annually. Meanwhile, Multan Sultans, which pays an annual franchise fee of 1.08 billion rupees, continues to suffer financial losses. Under the current financial model, it will be challenging for any new team to achieve profitability.

Existing franchises have expressed interest in maintaining their contracts. After evaluating the league and franchises, the PCB may increase franchise fees by 25%. Some Pakistani investors, as well as individuals from the U.S. and the U.K., are interested in acquiring two new teams.

Following PSL 10, the board plans to extend or modify various contracts, including franchise agreements. Currently, the league consists of six teams, but two new franchises are set to join from the 11th season in 2026. The existing franchises have the option to continue their agreements or opt out. However, none of them have declined so far, and they have already informed the board of their decision to continue.

To determine the new franchise fees, an independent audit firm with a strong reputation will be engaged. PCB had previously set the exchange rate at 170 rupees per dollar for fee calculations, but with the dollar now at 282 rupees, the financial dynamics have changed.

Multan Sultans currently pays an annual fee of 1.08 billion rupees (approximately $6.3 million) but is facing consistent losses. With the expected 25% increase in franchise fees, its fee could rise to nearly 1.5 billion rupees.

For context, the initial sale prices of other teams were:

    •    Karachi Kings: $2.6 million
    •    Lahore Qalandars: $2.5 million
    •    Peshawar Zalmi: $1.6 million
    •    Islamabad United: $1.5 million
    •    Quetta Gladiators: $1.1 million

The PCB hopes to sell the new teams for $7 to $10 million (approximately 2 to 2.5 billion rupees).

A major stakeholder in Pakistan cricket, along with a potential partner, is interested in acquiring a team. Additionally, an organization involved in Grade Two cricket has also expressed interest. Recently, PCB Chairman Mohsin Naqvi and PSL CEO Salman Naseer held meetings with potential investors in the U.S., where two individuals showed interest in purchasing a team. Some UK-based Pakistani businessmen are also in the race. However, the seriousness of these potential buyers will only become clear closer to the bidding process.

Under the current revenue model, all franchises receive an equal share from the central pool, regardless of their franchise fee. Existing teams fear that the inclusion of new franchises may reduce their share. However, PCB officials argue that after PSL 10, major sponsorship and broadcasting deals will be renegotiated, which could increase the overall revenue pool.

Critics question how a new team, paying 2 to 2.5 billion rupees in fees, will generate profits when Multan Sultans struggles even at a fee of 1.08 billion rupees. There are concerns that, like the previous owner of Multan Sultans (Schon Group), a new franchise owner might also back out due to financial losses.

Therefore, experts suggest that PCB should only sell teams to financially stable and well-established investors to ensure long-term sustainability.