The Pakistan Cricket Board (PCB) has offered a new financial model to Pakistan Super League (PSL) franchises, a PCB statement has announced.
During a PSL Governing Council meeting on Monday, PCB chairman Ramiz Raja proposed the new model before the franchises. As per PCB statement, the new model offered relaxation in payments to all six franchises as part of the Covid-19 relief for the fifth and sixth editions of the PSL.
Moreover, it also offered an increased share from the Central Pool of Revenue (CRP) from PSL 7 to 20 and a fixation of the dollar rate in local currency to end the uncertainty surrounding annual payments.
In the statement, the PCB said that the new profit-sharing model was part of its commitment and resolve to assist and support the franchises in order they can keep continue in playing their crucial role in the growth and development Pakistan cricket.
Commenting on the development, the PCB chairman said: “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,” he added.
Earlier on September 24, the PCB chairman had also chaired the HBL PSL Governing Council meeting where he had highlighted and appreciated the franchisees’ contribution in the growth, development and promotion of Pakistan cricket.
He had assured the team owners that he remained committed to upscaling, enhancing and strengthening the HBL PSL brand.
Raja had also assured the franchise owners that he understood the challenges they faced and promised to work with them for the betterment of the league and cricket in Pakistan.
Significantly, the current profit-sharing model has been a major cause of disagreement between the PCB and PSL franchises for four years and the newly offerd model is directed towards ending the deadlock.
Under the new proposed model, the PCB will keep 20 percent of the profit and hand the remaining amount among the franchises, who were happy with it until Multan Sultans were added into the pool in 2018 as the addition of a new team meant a reduction in the amount they were getting before.
As a result, the franchises demanded for a bigger chunk of the revenue from the board.
An another issue was the depreciation of the Pakistani rupee regularly due to which the franchises wanted the US dollar rate to be fixed in local currency to offset the losses as they have to pay their foreign players in dollars.
All these issues were raised before former PCB chairman Najam Sethi however, he wasn’t able to address the issue.
Later, the issue wa again put up before Sethi’s successor Ehsan Mani, who too, failed in resolving the matter.