PSL financial model unlikely to be revised before 2022

The Pakistan Super League (PSL) financial model is unlikely to be revised before 2022, according to sources.

Earlier, the PSL franchises had taken PCB to court as they believe that the financial model is skewed in the latter’s favour which led to significant losses for the former. Later, the two parties decided to settle the matter out of court for the betterment of the league.

Sources privy to the matter have revealed that board has once again asked for franchise fee for the sixth edition of PSL, which none of the owners have submitted so far, but the franchises believe that such a demand should be made after the revised financial model is put in place. The initial deadline of November 20 has already passed in this regard.

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On the other hand, the PCB have clearly stated, in an email sent out to franchises, that, even if the financial model is revised, the changes would only be applicable form 2022 so the franchises should submit their franchise fee as soon as possible.

It must be noted that two proposed financial models are currently under discussion but the franchises are divided on which one to adopt for the future.

The first option gives the franchises 90 per cent share in commercial contracts but they will have to pay franchise fee. Meanwhile, in the second proposal the franchises will get 30 per cent of share in commercial contracts along with 50 years of ownership. In the second option, they won’t have to pay the yearly franchises fee.

The franchises which were sold for a lower value prefer the first option, while the teams which were bought for a considerably higher value are inclined towards the second option.