The six Pakistan Super League (PSL) franchises have accepted the new financial model offered by the Pakistan Cricket Board (PCB), the board announced on Monday.
The new financial model was presented before the PSL franchises during last month’s Governing Council meeting in Lahore.
Some of the salient terms of the offer, which the six franchises have accepted are Covid-19 relief for HBL PSL 5 and 6, upward revision of Central Pool of Revenue in favour of the franchises for HBL PSL 7–20 and locking of dollar rate with prospective effect.
Commenting on the development, PCB Chairman Ramiz Raja, who welcomed the resolution, said: “The longstanding matters between the PCB and the franchises were causing distraction and affecting the reputation of the brand. I am delighted that all matters have finally been resolved, which is a big step forward in building stronger relationship with the franchise owners as we look forward to working with them to take the HBL PSL to greater and unprecedented heights.”
On the other hand, the franchise owners, in a joint statement, said: “HBL PSL is very close to our hearts. Since 2016, we all have worked very hard to bring it to where it is today. The acceptance of the PCB offer is an indication of our commitment and resolve to making the HBL PSL a bigger and better league that is participated by the best players, commercially supported by the elite companies and watched live by the passionate cricket fans in Pakistan as well as globally.”
During a PSL Governing Council meeting towards the end of September, Raja had proposed the new model before the franchises, which had 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 had 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.
Significantly on September 24, the PCB chairman had 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.