I think, still PSL's main source of money has to be broadcasting rights and endorsements including on-line rights. More or less, sports (any type) has 3 buckets (of money stream), and I can give the examples from LFC, for their June to May 2016-17 financials.
- Gate money, which is big in 1st world countries - average retail ticket price for a Liverpool home EPL game is around US $75. Anfield has a capacity of 54K+, and average home game occupancy is about 96% ~ 52.5K. However, fans can get significant discounts on season tickets, and LFC has a 7 year pending list for season ticket (over 60% tickets are not given to season ticket). Last I can recall, for 19 EPL games, about 7/8 domestic cup (2) ties and similar number of Europa/CL games, and few exhibition games, Liverpool's ticket sale was around 74mn BP, or about $105mn. That makes an average seat price around $58 ( $105,000,000 / 52,500 X 35 = ~ $58). I don't think, any 3rd world market can manage that level of unit price (for ticket), not even close to it. May be some seats for some special games.
- Media money (Broadcast deals & Guarantee money)
- Endorsements and sponsorship, including stadium branding, naming rights and shirts, Souvenir sales (shirt, kits, logo etc.), partnerships (like Airline, restaurants, shopping chains) .
For Liverpool, for that financial period, gross revenue was 364mn BP (~$512mn US). Contribution from 4 buckets were
- Gate : 20% (74mn)
- Broadcasting rights, Prize & guarantee money from EPL, domestic cups, Europa : 42% (154mn)
- Endorsements & sponsorship : 37% (136mn)
On top of that, LFC earned transfer profits, but they offset that from players wage cost (or some accounting methods, not sure), therefore it doesn't touch the Gross revenue, neither the bank interest for their deposits. That 364mn is purely from football on field and 1st team brand assets.
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For PSL, if it's arranged entirely in PAK, I think that gate money share should increase - at what %, we can calculate later. One thing I have seen in any such mass operation business (stadium, cinema hall, airlines, concert shows....), the critical factor is % of occupancy - the price elasticity has to be in a way that, organizers have to find the highest unit price for max occupancy - the average ticket price that brings highest number of paid fans. In general, stadiums are best operated at a ticket price which brings 96%-98% paid crowd. (simple maths - if the capacity is 50K, 60% at $35/average ticket brings $1.05mn; 80% at $30 brings $1.2mn, but 99% at $20 brings less than $1mn, with added hassle and 30% at $60 earns 0.9mn - this is one reason why St. James Park is almost always full, Ittehad, failed to sell out MCity -Liverpool CL quarter final - may be Mansoor doesn't need to find the best pricing crossover point ...)
If I consider 30 PSL Games in 5 stadiums (K, L, M, R & F) with every city hosting 6 games; I think best way to sell cricket is what they do in BPL - 2 games in a day for 1 ticket. For PAK's context, it's even more applicable because of net margin - less match day means lesser cost on security and VIP transportation.
In that case, total match day comes at 19 (15 + last 4 day). Match day can be increased, but that's counter productive at least for first few years, because of reduction of ticket price (for single game), and increase of over head (operating expenses).
As far I know, capacity of NSK is 35K; GSL 25K, Multan 35K, Rawalpindi 25K and F'bad 20K. Increasing seat is an option, but that has 2 negatives - massive initial investment & reduction of high priced corporate box/seats. I am calculating at current capacity.
Total available seat (6 games each and 3 match days each) is 3 X (2 X 35K + 2 X 25K + 20K) = 420K
At 95% paid occupancy; this comes around 400K paid crowd.
Now, no way once PSL comes to PAK, for a month's houseful sell out, it can operate at the stated price level above, even for 2 games. Besides, considering mean income level of each City, there has to be separate city based pricing, which should pull down the average price once Multan, Faisalabad & R'Pindi joins the big 2. Same example I can give from EPL again - Arsenal's home ticket is the most expensive in football world - because, Emeritus is based in the richest city in world and also in London's richer northern part.
Considering the BPL ticket price in a very similar economy (but BPL's most games are hosted in Dhaka, here I am considering PSL equally distributed), I think, average maximum ticket price we can take is $7.5 = PRK 1000. In BPL, they charge daily ticket (for 2 games) at average BDT 700 in Dhaka and about 500 in other cities. Latest conversion I see between BDT : PRK is 1:1.4; that's equivalent between BDT 700 vs PRK 1000. But, I am giving PSL some mark up - applying the equivalent price of Dhaka on over all PSL, not considering price drop in other 3 Cities.
That, makes a Gate money for preliminary 30 games around $7.5 X 400,000 = $3mn. A 20-25% price increase can take it to $3.5mn to $3.8mn, but I don't think further increase (at 25% mark-up, average price reaches PRK 1,250/day), can keep that occupancy at 95%+ level, which is a bigger risk.
4 Eliminator games are different equation - at 99% occupancy of 30K (average of Lahore & Karachi - 2 games each), at $25 average price (PRK 3500), it can bring $25 X 30,000 X 4 X 99% ~$3mn. I take 15-20% mark up (that's $32/ticket at max, PRK 4500/ticket), totals around $3.5mn, though using this years index might be extremely risky - those eliminators will be after 30 games in PAK, still I give it.
Considering that average price and % occupancy - minimum of $6mn and maximum of $7mn from gate - we can take a safer figure in between : $6.5mn.
Even if I take, gate money as low as 25% of PSL's gross income potential (extremely unlikely - after all their global branding, MU's gate money is 29% of gross revenue - as their ticket price is higher and almost every home game is sold out at 79K Old Traford, and they have been playing at least 5 CL home Games every season, often close to 10 Europe games, which earns over 3.5mn BP, every night), PSL's highest revenue potential in next 3-5 years is maximum US $23-25mn/annually. Converting to PRK, it comes at 350 crore/year - which is indeed great money.
Gross revenue (sales proceed) vs total equity is an important index, which is used to measure the efficiency and sometimes possible asset value in case of a buy out. It varies from industry to industry, and with the age of a performing business (because with age a performing business increases value from non-tangible assets like brand, human resources, R&D, technical expertise..) - some of the best companies had following ratios in recent times : Walmart ~240% (their gross sales volume is $500bn, compared to total asset of $225bn); Apple ~60%, Toyota ~60%, Samsung ~80%, Volkswagen ~55%, RD Shell ~75%, AT&T ~35%, BP ~85%, GM ~75%, Berkshire Hethway ~29%, Amazon ~135%, Microsoft ~38% .....
Recently I hear, Nazam Sethi has mentioned PSL already reaching 1 billion in terms of net worth (asset value - means, if anyone is to buy out it, PCB can bargain for 1 billion), or may be 500mn, which is still a "decent" money (Here I consider Ben Farnklin wala billion/million). At, $25mn, gross revenue potential, for an equity worth of $500mn, I must have to say, it's operating really poor for a ratio of 5% between Gross Revenue Vs Total Asset. Nazam Sethi must have some out of box plans in his sleeves in near future to take it to semi decent level, that's $100mn/year - I'll be in touch of PP to learn that.
