PSL Franchise Sales Hit Record Rs2.45bn High

PSL franchise sales have hit a record Rs2.45 billion, with Rawalpindiz the latest team to change hands. The rising prices show the league’s commercial pull, but they also expose a model that leaves some owners struggling.

In 2015, Najam Sethi, then chairman of the PCB Executive Committee, asked colleagues at Gaddafi Stadium what to do if a PSL team did not sell. He called Nadeem Omar, a leading Karachi cricket figure, and talked him into buying a team.

Omar agreed, though reluctant, and was given the Quetta Gladiators for $1.1 million a year, then over Rs190 million. Multan Sultans, sold for $6.3 million, was the most expensive franchise at the time.

How PSL franchise sales exposed the revenue problem

The PSL model is unusual: every franchise gets the same central pool share, whatever fee it pays. Last year, each franchise was due about Rs980 million, but about Rs700 million went on salaries, travel, accommodation and other costs.

Once the fee is deducted, the result can be a loss, so a franchise’s own commercial income is vital, yet franchises lag here. The Express Tribune reported that if one franchise secures a sponsorship worth Rs500 million, another may offer the same deal for Rs250 million, and the sponsor then turns to the PCB directly, holding the market back.

Big global brands are also missing. Emirates and Qatar Airways fly full planes in Pakistan, but they do not sponsor the PSL as they sponsor the IPL, the report noted. Local firms can spend only so much, and the ban on surrogate betting ads closed another income stream.

Franchises sit idle for about ten months a year, which makes it hard to build hype. Merchandise is weak too: an official shirt may sell for Rs2,000, while a copy is available for Rs200.

Record PSL franchise sales in the new bidding

After the tenth edition, the PCB commissioned valuations of the league and franchises ahead of new deals and two new teams. Existing owners could keep their teams by paying the higher of the new valuation or 25 per cent of the old fee.

Quetta’s annual fee rose to about Rs360 million. Multan’s owner, already complaining of losses, faced a fee above Rs1.35 billion, so the search for a new owner began.

Fawad Sarwar, an American businessman, then bought the Hyderabad Kingsmen for Rs1.75 billion. The Multan franchise, renamed Sialkot for the bidding, sold for even more. Rawalpindiz then broke all records at Rs2.45 billion. The franchise has since appointed Rashid Latif as sporting director ahead of PSL 12, as Feature Pakistan reported.

The same issue returned at once: Quetta, paying Rs360 million, gets the same central share as a franchise paying billions. The PCB now knows it could sell that franchise for as much as Rs2.5 billion.

Unpaid dues and the road ahead

Money owed to franchises is another strain: they have waited two years for their revenue shares, the report said. Last year, one stakeholder failed to pay and has kept making excuses since.

This year, another party was brought in. Despite ambitious promises, it now refuses to pay, citing losses. A PSL official also failed to obtain the mandatory bank guarantee.

Senior PCB officials have issued final warnings to both. The deadline has passed, and a decision is expected soon.

Preparations for the 12th edition are under way, with the auction framework and direct-signing rules already set, as Feature Pakistan reported. A workshop of all franchises discussed the auction rules and direct signings, as Feature Pakistan reported, and upheld the direct-signing condition, as Feature Pakistan reported. The 12th edition is due to start in March, as Feature Pakistan reported.

The analysis concludes the league needs a dedicated marketing team, stronger due diligence, and franchise marketing executives who can build new revenue streams. The PSL is a gold mine, it says, and the PCB has given franchises a licence to extract gold. If a franchise still cannot make money, it should look at itself.

Frequently asked questions

Which PSL franchise sold for the highest price?

Rawalpindiz, at Rs2.45 billion, breaking all previous records.

How much did the Hyderabad Kingsmen sell for?

Fawad Sarwar bought the Hyderabad Kingsmen for Rs1.75 billion.

Why do some PSL franchises lose money?

Each franchise gets the same central pool share, about Rs980 million, but about Rs700 million goes on costs, and the fee can push the result into a loss.

What is the central pool share?

About Rs980 million per franchise last year, from title sponsorship and media rights revenue.

What is the unpaid dues issue?

Franchises have waited two years. One stakeholder failed to pay last year, and another is refusing to pay this year.