PCB sets 1.3 billion reserve price for two new PSL franchises
The Pakistan Cricket Board (PCB) is seeking to sell each of its two new teams for the next phase of the Pakistan Super League (PSL) at an annual franchise fee of 1.3 billion Pakistani rupees, according to sources. The PCB is scheduled to hold the final auction on January 8. Interestingly, the former owners of the Multan Sultans, who relinquished ownership a few weeks ago following differences with the PCB, have submitted initial bid documents to participate in the final auction for the two new teams.
However, there is no clarity yet on new owners for the Multan franchise, amid strong speculation that the PCB intends to manage the team itself for at least the 11th edition of the PSL, scheduled to begin on March 26 next year. The PCB claims around 12 parties, including five from overseas, have submitted initial bid documents for the two new teams, though it is yet to release the final list of eligible bidders after conducting financial and technical due diligence.
Earlier this month, the PCB held PSL roadshows in London and New York to attract foreign investors for the two new teams. In an effort to boost investor confidence, the PCB has guaranteed a minimum distribution of 850 million pakistani rupees to each franchise from the central revenue pool for the next five editions of the league, starting with the 11th edition. The board has said that if a franchise’s share from the central pool in any season falls below the guaranteed amount, the PCB will cover the shortfall. While the annual franchise fees of the existing six teams vary, all eight teams in the expanded PSL will receive an equal share from the central revenue pool.
Quetta Gladiators are valued at 360 million rupees, Peshawar Zalmi at 480 million, Islamabad United at 490 million, Karachi Kings at 650 million, Lahore Qalandars at 670 million and Multan Sultans at 1.8 billion. The PCB has also informed franchises that they will be allowed to spend up to $1.4 million each to acquire players through the PSL draft. Former Multan Sultans owner Ali Tareen had earlier raised objections to the PSL’s financial model, citing disparities that he said resulted in franchise losses.
