Losing sponsors, Pakistan Super League franchises are fuming

[Abdullah719]

DUBAI: Just three-years old, the HBL Pakistan Super League has already established itself as one of the biggest brands to come out of the country.

But despite its initial success, the T20 league continues to face stumbling blocks.And one of the biggest losers are the six franchises.

Sources in various PSL franchises told ‘The News’ that all the six teams have been losing money since the initiation of the league back in 2016.

“Not a single of the franchises is breaking even,” a well-placed source said.

Despite suffering from financial losses, the franchises have been fully backing the Pakistan Cricket Board (PCB) in its campaign to turn PSL into one of the best T20 leagues in the world.

However, there is one reason why many of the franchise owners are fuming. They believe that instead of supporting them, PCB is, directly or indirectly, robbing it of sponsors.

“We are all fully backing PCB because we own PSL and want to make it the best T20 league in the world,” said one franchise owner. “But the Board will have to rethink its marketing strategy. It will have to treat the franchises as major stakeholders but unfortunately some of their policies are having adverse effects on the finances of the franchises,” he added.

The single biggest lament of some of the franchises is that the PCB has given a too much of a freehand to its marketing partners Transmedia.

“They (Transmedia) are dealing fatal blows to some of the franchises by luring away their sponsors. This practice should be stopped. The franchises are already struggling because so far PSL has not been a money-making business for them.“

The Board should ask its marketing partners to find their own sponsors instead of poaching on sponsors that are associated with the franchises,” an official of one of the franchises told ‘The News’.

According to a senior official of one of the PSL franchises, Transmedia has succeeded in luring away sponsors from them because it was in a position to give them a better deal because it had PCB’s backing.

“The thing is that anyone working on behalf of the PCB can offer sponsors better deals. But you cannot go and make a pitch to a company that is already associated with a (PSL) franchise. They should find new sponsors for the Board instead of luring away companies associated with the franchises. This practice should be stopped,” he said.

According to sources, the issue was also raised in a meeting between the six franchise owners and Najam Sethi, the PCB chairman, at the Inter-continental in Dubai Festival City.

The franchise owners demanded that the PCB should make things more transparent and allow the franchises to be a part of the process through which it will sell title and broadcast rights for future editions of the league including PSL 4 in 2019.

“HBL’s title sponsorship was for three years which means that PCB will be signing up a new title sponsor. It is expecting to get a sum that is at least three times more than the previous deal with HBL,” said a source.

“The franchise owners want to be in the loop when the PSL rights are sold. They want in and the PCB has assured them that it will find a way,” another well-placed source disclosed.

https://www.thenews.com.pk/latest/291477-losing-sponsors-psl-franchises-are-fuming

 

[The cricket enthusiast]

eh nothing new here
unprofessional Pcb

 

[Syed1]

“HBL’s title sponsorship was for three years which means that PCB will be signing up a new title sponsor. It is expecting to get a sum that is at least three times more than the previous deal with HBL,” said a source.

“The franchise owners want to be in the loop when the PSL rights are sold. They want in and the PCB has assured them that it will find a way,” another well-placed source disclosed.


Hope this happens and corrupt Sethi doesn't pocket all the change

 

[Saj]

The owners were brought into the PSL on the lure that they will start making money after a few seasons. If that does not start happening then these owners are not going to hang around and carry on losing a lot of money, just to get a medal from PCB and some time on television.

 

[Mr.Q]

The owners were brought into the PSL on the lure that they will start making money after a few seasons. If that does not start happening then these owners are not going to hang around and carry on losing a lot of money, just to get a medal from PCB and some time on television.

They deserve to lose money if they believed it. But still the current worth/value of the franchises must be a lot more than what they paid three years ago. That’s basically unrealised profit isn’t it?

 

[cricketjoshila]

This is a result of a small pool of sponsors. PCB and Franchisees are fighting over the same companies. PSL will have to expand its reach to make more companies interested.

 

[Fahdi]

There have been mixed reports regarding finances of the PSL. From what I am starting to gather from this report and a few others is that the PCB is making a profit off the PSL but some franchises aren't breaking even?

 

[gani999]

Even some IPL franchises took up to three years to break even. So don't expect miracles from PSL franchises, particularly when they are playing to near-empty stadiums in Dubai.

 

[JustNotAFanOfThings]

Companies do proper market research before investing in any sporting event. You can't fool them by just making better presentations. Sponsors (even more than PCB itself) know exactly how much Pakistan Cricket is worth & their expected return of investment.

If cricket economy of Pakistan is stagnated, PCB can't artificially inflate it. Oppo is not a fool to invest so heavily on Team India sponsorship. They saw real results & incredible increase in their brand value in such a short period of time in India.

 

[Shafi]

They deserve that since they select their known faces TTFs instead of promising young players

 

[Adijazz1706]

As long as they play in Dubai, it's to be expected. The PSL should be split up between Sharjah and Pakistan so we get a good crowd in

 

[SM1989]

They deserve that since they select their known faces TTFs instead of promising young players

Sorry but the majority of spectators on the ground don't sit on Pakpassion. They will pay to watch Ahmed Shehzad over Saif Badar any day.

 

[Red Devil]

Never take anything seriously from sources like The News.

 

[AFM]

So next year is a new Title sponsor? Can't wait for the Boom Boom Bubblegum PSL

 

[Red Devil]

Pepsi PSL sounds pretty catchy.

 

[ipl_fan]

Brighto Paints PSL sounds good

 

[BreadPakoda]

Sorry but the majority of spectators on the ground don't sit on Pakpassion. They will pay to watch Ahmed Shehzad over Saif Badar any day.

That’s actually true from what I’ve noticed. Ahmad Shahzad, Umar Akmal, and Shahid Afridi are the biggest batting stars for the average Joe (not the PPer) in Pak public. I’m sure if tomorrow Imran Nazir makes a comeback, he will attract crowds too. He had similar star power.

 

[Sherlock]

PSL/PCB needs to expand and throw the net wider.

 

[MenInG]

A bit more hard work from PCB could have brought in spectators easily.

Offering people prizes, Tshirts etc for coming to the stadium - asking Pak schools to send in kids (provide free transport, chance to meet Afridi or other stars etc)

Lots which could be done.

Instead, using PSL as a private party for friends and family.

 

[Adijazz1706]

A bit more hard work from PCB could have brought in spectators easily.

Offering people prizes, Tshirts etc for coming to the stadium - asking Pak schools to send in kids (provide free transport, chance to meet Afridi or other stars etc)

Lots which could be done.

Instead, using PSL as a private party for friends and family.

Nothing will work in Dubai for well known reasons, the stadium is just too far away

 

[Executioner]

The reality is that PSL in UAE will be very boring

Even if the matches are top notch the environment is dull and that also means that tv spectators will lose interest

Don't expect crowd in UAE. It's not Pakistan.

 

[Mp812]

I was wondering why would sponsors pump in a lot money. I mean today as I write S.A. vs Australia test just finished. SL busy with BD and India . England is currently touring kiwiland. Which foreign big names are then playing in PSL??????

 

[MenInG]

Nothing will work in Dubai for well known reasons, the stadium is just too far away

which is why I am suggesting above - free transport, incentives - cost nothing

 

[Naim]

if this was the case then why these companies are buying team in hong kong and south africa leauges ?

 

[sjahmed23]

It will take time and patience, rome wasn't built in a day. Good news is there is plenty of interest in Pakistan and when the league eventually moves back to Pakistan, it will be the thing and will attract a lot of sponsors and merchandise sale.

 

[badsha001]

I was wondering why would sponsors pump in a lot money. I mean today as I write S.A. vs Australia test just finished. SL busy with BD and India . England is currently touring kiwiland. Which foreign big names are then playing in PSL??????

We don't need any big names from Bangladesh, last time big name bowler Fiz bowled we know what happened after that...

 

[Savak]

The owners were brought into the PSL on the lure that they will start making money after a few seasons. If that does not start happening then these owners are not going to hang around and carry on losing a lot of money, just to get a medal from PCB and some time on television.

These owners were not 2 year old kids, these are experienced businessmen and entreprenuers. Secondly the PCB when it signed the 10 year agreement with the Franchises inserted the clause that the PCB will only help the Franchises out financially in the first season and after that the Franchises will have to take care of themselves.

 

[Rishta Aunty]

While I can understand the PSL owners want to make money as soon as possible, I remember seeing that the IPL owners of most teams didn't make a profit either for the first 5 years. Only 3 teams out of 8 were exceptions from what I remember. It's going to be even more challenging for the PSL considering we don't have any gate receipts to speak of at all.

 

[Saj]

Some of the owners aren't happy with the PCB either regarding the foreign players issue, especially with Sethi saying they will make sure overseas players travel to Pakistan and some dropping out.

Owners are blaming PCB, whilst PCB says it's the owners fault.

 

[Rishta Aunty]

Some of the owners aren't happy with the PCB either regarding the foreign players issue, especially with Sethi saying they will make sure overseas players travel to Pakistan and some dropping out.

Owners are blaming PCB, whilst PCB says it's the owners fault.

I'm guessing that Nadeem Omer is definitely one of them considering how their team has suffered.

Any ideas what they think is the solution right now? Are they leaning towards 'We'll lose any star power we have if we bring in a rule that they have to travel', or is it 'If we have to grow, we need to bring to Pakistan, and for that we need commitment from the foreign players who join'?

 

[Saj]

I'm guessing that Nadeem Omer is definitely one of them considering how their team has suffered.

Any ideas what they think is the solution right now? Are they leaning towards 'We'll lose any star power we have if we bring in a rule that they have to travel', or is it 'If we have to grow, we need to bring to Pakistan, and for that we need commitment from the foreign players who join'?

Well Moin Khan was also very critical of the PCB regarding the overseas players issues.

I would suggest contracts signed by the players before the tournament is held.

 

[sjahmed23]

I can only blame the owners when I see the likes of Faisal Iqbal sitting with Karachi bench collecting pay checks for doing probably nothing. Like the saying goes too many cooks can spoil the broth. I see too many inefficiencies and head scratching decisions, a franchise needs to be run like a business with every person having a defined role and not like a club gathering / hang out party. Only then will you have dedicated fans who believe in the product.