Does the Pakistan Super League possess a sustainable financial model?

[cricketjoshila]

Very simple assumption. Dont cite this example in an investment banking interview trust me

But yes you are right. Problem is that I would look at in whole dollar amounts only. Wasnt the winner prize money of 4.8cr INR still translate to $1million in 2008 using the exchange rates of the time?

There is also a basic mistake.

The total prize money of PSL is 1mn.

The tournament will carry collective prize money of up to $1 million (Dhs3.673m).

http://sport360.com/article/interna...er-dubai-host-inaugural-pakistan-super-league

So if we are taking the total prize money of PSL then its only fair to take the total prize money of IPL 1 which was 12crore. 4.8 crore was for the winner only.

 

[Slog]

The total prize money of PSL is 1mn.



http://sport360.com/article/interna...er-dubai-host-inaugural-pakistan-super-league

So if we are taking the total prize money of PSL then its only fair to take the total prize money of IPL 1 which was 12crore.

If that is true then you are right.

in any case i think the deciding factor from a players point of view will be the individual contracts not the winning prize money

 

[cricketjoshila]

If that is true then you are right.

in any case i think the deciding factor from a players point of view will be the individual contracts not the winning prize money

Here is another source for you

In addition, top foreign coaches are also being roped in for the first edition of the PSL. The tournament will carry collective prize money of up to $1 million.

http://tribune.com.pk/story/945201/feb-4-24-doha-to-host-first-edition-of-pakistan-super-league/

 

[Slog]

Here is another source for you



http://tribune.com.pk/story/945201/feb-4-24-doha-to-host-first-edition-of-pakistan-super-league/

You are right then.

In any case I have mentioned in this thread and elsewhere that our competition is not IPL and it is unrealistic and frankly delusional to try to compete with it.

The aim should be to get above the likes of CPL, BPL and SLPL and not make the mistakes these have made which is why 2 of them had to shut shop.

My major concern is the same problem BPL had which is the lack of timely payments which was a death knell for that league. The players lose trust, the word gets around and the good players are no longer willingly to commit and play. I'd rather PSL start off as low key and slowly build its way up over the years so that it competes with Big Bash.

The problem is that the major Pakistani conglomerate and players dont seem to be interested. I know fairly high up people in 2 of them very well and for neither of them it is even a consideration to make a play into the PSL. And from what they tell neither has the PCB or PSL organizers come to them and made a case why these guys should invest in a team and how it might be good for them in the future

For PSL to be a sucess Hashwanis, Dawoods, Habibs etc need to be involved rather than Cool and Cool, JJ and Haier. This is a front PCB doesnt seem to have done a lot of work in and I dont really expect PCB to pull out something magical out of the bag in theis regar

 

[cricketjoshila]

Have they sold the Tv rights for PSL?That will decide the real financial worth of PSL.

BBL fetches 20mn USD per year from TV Rights.

IPL makes around 160mn USD per year from Tv rights and 5mn USD from internet telecast rights.

CPL broadcast deal's value isnt known.

 

[cricketjoshila]

You are right then.

In any case I have mentioned in this thread and elsewhere that our competition is not IPL and it is unrealistic and frankly delusional to try to compete with it.

The aim should be to get above the likes of CPL, BPL and SLPL and not make the mistakes these have made which is why 2 of them had to shut shop.

My major concern is the same problem BPL had which is the lack of timely payments which was a death knell for that league. The players lose trust, the word gets around and the good players are no longer willingly to commit and play. I'd rather PSL start off as low key and slowly build its way up over the years so that it competes with Big Bash.

The problem is that the major Pakistani conglomerate and players dont seem to be interested. I know fairly high up people in 2 of them very well and for neither of them it is even a consideration to make a play into the PSL. And from what they tell neither has the PCB or PSL organizers come to them and made a case why these guys should invest in a team and how it might be good for them in the future

For PSL to be a sucess Hashwanis, Dawoods, Habibs etc need to be involved rather than Cool and Cool, JJ and Haier. This is a front PCB doesnt seem to have done a lot of work in and I dont really expect PCB to pull out something magical out of the bag in theis regar

The thing is throughtout Indian history Indian conglomorates have sponsored cricket its a sort of priviledge among the Ultra rich of India to be associated with Indian cricket.In Pakistan the big corporate houses like Mansha,Saigol etc havent sponsored cricket.I dont know why.

 

[11ShadyBrothers]

The total prize money of PSL is 1mn.



http://sport360.com/article/interna...er-dubai-host-inaugural-pakistan-super-league

So if we are taking the total prize money of PSL then its only fair to take the total prize money of IPL 1 which was 12crore.

My bad. I thought 1 million was just for the final.

If we take unitary method into account ( a tad unreliable) we can say that IPL 1's prize money is equal to around 3 million USD. A difference of 2 million. Well, not unexpected tbh. But still 1 million is not a poor amount.

 

[11ShadyBrothers]

The thing is throughtout Indian history Indian conglomorates have sponsored cricket its a sort of priviledge among the Ultra rich of India to be associated with Indian cricket.In Pakistan the big corporate houses like Mansha,Saigol etc havent sponsored cricket.I dont know why.

Yeah, thats true. DLF a local company sponsored IPL in the initial years before Pepsi iirc took over.

 

[cricketjoshila]

My bad. I thought 1 million was just for the final.

If we take unitary method into account ( a tad unreliable) we can say that IPL 1's prize money is equal to around 3 million USD. A difference of 2 million. Well, not unexpected tbh. But still 1 million is not a poor amount.

1mn USD is not poor.But all depends how they distribute it.

 

[11ShadyBrothers]

Have they sold the Tv rights for PSL?That will decide the real financial worth of PSL.

BBL fetches 20mn USD per year from TV Rights.

IPL makes around 160mn USD per year from Tv rights and 5mn USD from internet telecast rights.

CPL broadcast deal's value isnt known.

Me thinks that PSL's broadcast value would be around BBLs.

 

[cricketjoshila]

Me thinks that PSL's broadcast value would be around BBLs.

Unlikely.The BBL is 20mn USD per year.The other cricket broadcast deal.of CA is around 450mn USD for 5 years that is 90mn USD per year.

PCBs deal for other cricket broad cast is around 150mn USD out of which 90mn USD is dependent on India tours.

I expect the rights to be sold for 8 to 12mn USD per year.

 

[11ShadyBrothers]

Unlikely.The BBL is 20mn USD per year.The other cricket broadcast deal.of CA is around 450mn USD for 5 years that is 90mn USD per year.

PCBs deal for other cricket broad cast is around 150mn USD out of which 90mn USD is dependent on India tours.

I expect the rights to be sold for 8 to 12mn USD per year.

Whoa. 90mn is a huge amount. Where did you get those figures from?

 

[cricketjoshila]

Whoa. 90mn is a huge amount. Where did you get those figures from?

Which 90mn?

The CA Tv deal or the PCB Tv deal?

I can post the links if you want.

 

[11ShadyBrothers]

Which 90mn?

The CA Tv deal or the PCB Tv deal?

I can post the links if you want.

The PCB deal. Yeah sure, want to take a look.

 

[cricketjoshila]

The PCB deal. Yeah sure, want to take a look.

In a recent deal, Pakistan Cricket Board (PCB) has sold its international matches broadcasting rights for an estimated sum of $150 million for the next five years,

the entire deal is dependent on whether Pakistan can have a home series with India on a neutral venue.

“If India does not play Pakistan in this period then at least 60 percent of the total bid amount will be reduced by the successful broadcasters,” he said.

http://tribune.com.pk/story/862982/pcb-sells-broadcasting-rights-for-150m/

 

[11ShadyBrothers]

http://tribune.com.pk/story/862982/pcb-sells-broadcasting-rights-for-150m/

Thanks man. No wonder PCB was dying for the december series. Harsh stuff from BCCI.

 

[cricketjoshila]

Thanks man. No wonder PCB was dying for the december series. Harsh stuff from BCCI.

Pleasure ShadyBhai

 

[Sami92]

[MENTION=139202]11ShadyBrothers[/MENTION]: Well done brother for the calculation. Thanks a lot for your advice. Much appreciated.

 

[Adnan Siddiqui]

PSL will follow KSE, real estates, Lollywood, inaami shows on tv etc. No one will show losses. #BlackMoney2WhiteMoney

PCB will be happy if this trend...

 

[MightyObnoxious]

Thanks man. No wonder PCB was dying for the december series. Harsh stuff from BCCI.

Had to say this, Cricket is undersold by many in Pakistan.Hope PCB manages to market it right and sell it for a decent amount.

 

[Flat_Track_Bully]

Will Sky or BT Sports be bidding for the broadcasting rights?

 

[Convict]

Unlikely.The BBL is 20mn USD per year.The other cricket broadcast deal.of CA is around 450mn USD for 5 years that is 90mn USD per year.

PCBs deal for other cricket broad cast is around 150mn USD out of which 90mn USD is dependent on India tours.

I expect the rights to be sold for 8 to 12mn USD per year.

On the other hand it is widely considered that Channel 10 got a massive bargain for the BBL because 1. CA wanted to get the BBL on Free to Air tv and 2. Nobody was sure how it would rate

Next time the amounts will be much larger

 

[Little Master]

It is a tournament which is expected to generate and use cashflows over a period of 1 to 3 months at the most and the wannabe investment bankers over here are calculating NPVs and IRRs. Unless you are assessing the financial viability of PSL over a period of say 5 years (on the assumption that PSL would go on for 5 years) [MENTION=139202]11ShadyBrothers[/MENTION] is just showing off his academic knowledge, which is not that great to be honest.

 

[11ShadyBrothers]

It is a tournament which is expected to generate and use cashflows over a period of 1 to 3 months at the most and the wannabe investment bankers over here are calculating NPVs and IRRs. Unless you are assessing the financial viability of PSL over a period of say 5 years (on the assumption that PSL would go on for 5 years) [MENTION=139202]11ShadyBrothers[/MENTION] is just showing off his academic knowledge, which is not that great to be honest.

What makes you think that you cannot calculate NPV and IRR for a period of 3 months? Do you have a slightest of ideas that the time duration has no link to usage of any calculation method? Why dont you tell us the method because we are all wannabe investment bankers as per you?

 

[aqeelPK]

Unlikely.The BBL is 20mn USD per year.The other cricket broadcast deal.of CA is around 450mn USD for 5 years that is 90mn USD per year.

PCBs deal for other cricket broad cast is around 150mn USD out of which 90mn USD is dependent on India tours.

I expect the rights to be sold for 8 to 12mn USD per year.

TV ads revenue will be atleast 19mn USD alone from Pakistan.

(Geo Entertainment offers 2min airtime at 11,000USD for prime time slot. Assuming PSL's ratings will be much much higher (atleast 10x)than a serial episode on Geo. Broadcaster should easily manage a price of 10,000USD per min. A t20 match has approx 70-90min of ad time on pak tv, means on avg 800kUSD revenue per match, multiply it by 24(total matches) = 19.2mn USD)
Now add tv revenues from other markets India, UK, US, Canada, ME + social media, website etc revenues.

Net broadcasting revenue should be around 30-35mn USD excluding broadcasting cost per season.

PCB should sell rights in the 20-25mn USD range.

 

[MightyObnoxious]

TV ads revenue will be atleast 19mn USD alone from Pakistan.

(Geo Entertainment offers 2min airtime at 11,000USD for prime time slot. Assuming PSL's ratings will be much much higher (atleast 10x)than a serial episode on Geo. Broadcaster should easily manage a price of 10,000USD per min. A t20 match has approx 70-90min of ad time on pak tv, means on avg 800kUSD revenue per match, multiply it by 24(total matches) = 19.2mn USD)
Now add tv revenues from other markets India, UK, US, Canada, ME + social media, website etc revenues.

Net broadcasting revenue should be around 30-35mn USD excluding broadcasting cost per season.

PCB should sell rights in the 20-25mn USD range.

Well, that may very well be the finances but sadly Cricket is undersold here. The guys at PCB are amateurs at best and sadly not many sports channels to have a fierce competition. Ten Sports will run away with it by paying peanuts.

 

[wasiii960]

how psl franchise earn money ???

i read some where that pcb shared 70% of broadcasting right profit with the franchise .. what are the other sources of their earning?

 

[Savak]

The PSL is run from the annual fees the Franchises have to pay the PCB. The PCB is getting $15 million in annual fees from the 6 franchises and another $600,000 each from the Franchise for the right to use the players. The net profit from this is the saving the PCB enjoys in its kitty. Sethi has already said that the PCB is getting $5 million per year from the PSL which is half of what the PCB gets from the ICC every year. Should the PSL expand and another 5-6 teams are added then the PCB can easily get upto $30-40 million per year and finally stand up on its own feet.