PCB is getting $60 million from the PSL already

[Savak]

With the sale to the Ali Tareen consortium, the PCB is now getting a total amount of $15.5 million per year from the PSL franchise owners.

According to Waheed Khan, the best offer the PCB has received for TV broadcasting rights for the PSL for the next 3 years is from a UK channel IWTN for $32 million dollars (albeit short of the $42-43 million price the pcb had set but still decent) in comparison to the Ehsan Faramosh Ary, Geo, PTV who tried to low ball the PCB and had offered an even lower amount in comparison to the first psl. I hope the pcb blacklists these broadcasters from future bids for offering a criminally low price for a product that deserved a premium price. For an international broadcaster to come in and be willing to pay 10 times the price for your own national product is a matter of serious shame and disgrace to these Pakistani broadcasters and one the pcb should never forget.

We all know that HBL offered Title sponsorship of $15 million this time for the next 3 years.

This is $60 million being generated from the PSL by the PCB right there overall and we haven't even included gate receipts and other advertising revenue yet. That is remarkable for a league which is not even played full fledged at home and we have boards like Sri Lanka, South Africa who have struggled to launch, sustain their leagues being played in their home countries.

How on earth are the franchises failing to encash and make profits by now given that they have been in this business for 3 long years is beyond me. In fact according to a few sources, a few psl franchises who were vocally complaining of losses actually showed profits when the pcb demanded audited financials from them.

Point being, we criticize the PCB for a lot of things but the PSL project has been a huge success and full credit must be given to Najam Sethi for having the cajones to pull it off in the face of so many risks. The pcb pulled it off all on its own hard work and efforts. While people blame Sethi for the BCCI lawsuit fiasco that he has left Ehsan Mani to deal with, Ehsan Mani will enjoy fruits of the PSL thanks to the hard work and efforts of Najam Sethi.

 

[Angrez Pakistani]

‘It’s economy stupid!’

 

[hailian]

With all my political differences with Sethi aside , the guy did any amazing job as a PCB chairman. Can’t be thankful enough to him for his PSL initiative. Hats off!!

 

[Hawkeye]

With all my political differences with Sethi aside , the guy did any amazing job as a PCB chairman. Can’t be thankful enough to him for his PSL initiative. Hats off!!

It was all good, until he his ego got too high and he started hurting our international cricket chances with bcci.

That is now hurting us a lot and might continue in near future. Embarrassment.

Anyway, OP seems to have a very simplistic view of how finances work. It's not as simple, there's a reason franchises are not even breaking even, just losing.

Pak broadcasters also don't have much $$s to spend. It's not low-balling when you don't have the finances.

We can only hope and pray it comes to Pak fully. Might see better days then.

 

[Savak]

It was all good, until he his ego got too high and he started hurting our international cricket chances with bcci.

That is now hurting us a lot and might continue in near future. Embarrassment.

Anyway, OP seems to have a very simplistic view of how finances work. It's not as simple, there's a reason franchises are not even breaking even, just losing.

Pak broadcasters also don't have much $$s to spend. It's not low-balling when you don't have the finances.

We can only hope and pray it comes to Pak fully. Might see better days then.

Some of the psl franchises have been caught lying to the pcb. PCB requested them to provide audited financials in exchange for the pcb to put forward their combined case to the govt for tax exemption and a few of them showed decent profits and far from losses.

Also while I acknowledge we lag behind finances compared to India and the west but Pakistani businessmen and individuals are extremely risk averse as well in comparison to other nationalities. Have seen it in my experiences in North America where the avg Indian just has the current and ability to think big and make any idea into an Entreprenuership opportunity whereas Pakistanis find more comfort in jobs or only investing in ideas or business plans with higher rates of success.

There are plenty of businesses and people in Pakistan with extremely huge pockets but small hearts

 

[cricketjoshila]

PCB has to share the Broadcast,Ad abd gate revenues with the franchisees.So its not $60mn.

 

[cricketindiafan]

[MENTION=2501]Savak[/MENTION] Do you have the following numbers?

PCB earnings
1. Franchisee fees
2. Title sponsorship rights
3. Media rights (broadcast and digital)

PCB costs:
1. Fees paid to host grounds
2. Marketing and advertising spend
3. Travel and hospitality

How much share do the franchisee receive out of 2 and 3 above?

Then consider the following
Franchisees costs (average)
1. Franchise fees (annual)
2. Players fees
3. Support staff fees
4. Marketing and advertising
5. Other operational expenses (Travel, lodging, hospitality etc)

Franchisee earnings
1. Gate receipts
2. Sponsors (kit, travel and others etc)
3. Proportion from PSL media rights and Title rights fees

 

[Savak]

[MENTION=2501]Savak[/MENTION] Do you have the following numbers?

PCB earnings
1. Franchisee fees
2. Title sponsorship rights
3. Media rights (broadcast and digital)

PCB costs:
1. Fees paid to host grounds
2. Marketing and advertising spend
3. Travel and hospitality

How much share do the franchisee receive out of 2 and 3 above?

Then consider the following
Franchisees costs (average)
1. Franchise fees (annual)
2. Players fees
3. Support staff fees
4. Marketing and advertising
5. Other operational expenses (Travel, lodging, hospitality etc)

Franchisee earnings
1. Gate receipts
2. Sponsors (kit, travel and others etc)
3. Proportion from PSL media rights and Title rights fees

The answer to the first part is in the op. As far as costs are concerned, the pcb was paying $100,000 a day to rent the UAE stadiums, Dxb and UAE is a very expensive place to live and wine dine but I am sure the franchises take care of their own players.

My understanding standing is that 50% of the broadcast rights, 50% of title sponsorship rights and 85% of gate receipts go into a central pool which then gets distributed to the franchises equally. The franchises by now should have worked out how to independently generate their own revenues via merchandising, finding their own sponsors, thinking out of the box etc.

I dont know what the IPL model is

 

[Savak]

PCB has to share the Broadcast,Ad abd gate revenues with the franchisees.So its not $60mn.

I think helping out the franchises was understandable for the first few years but the drawback is that it leaves them with zero incentive to stand on their own feet

 

[Savak]

Najam Sethi mentioned that the PCB was considering registering the PSL under a corporation and then listing it on the stock exchange. Will Ehsan Mani and Wasim Khan have the same drive and out of the box thinking

 

[cricketjoshila]

I think helping out the franchises was understandable for the first few years but the drawback is that it leaves them with zero incentive to stand on their own feet

Broadcast revenues and sponsorship revenues are shared with the teams in almost every professional league.

Gate receipt belong to the home teams in a league.

So PCB is not helping, they are just following the rules other leagues follow.

 

[cricketjoshila]

Najam Sethi mentioned that the PCB was considering registering the PSL under a corporation and then listing it on the stock exchange. Will Ehsan Mani and Wasim Khan have the same drive and out of the box thinking

Listing on stock exchange means little. The company has to perform in terms if revenues etc.