Hitman
Senior T20I Player
- Joined
- Feb 25, 2013
- Runs
- 17,630
Trust deficit between the Pakistan Super League (PSL) franchises and the Pakistan Cricket Board (PCB) has widened after the latter released the financial details of the former. A document that contained the financial breakdown - from the revenues to sponsorship deals to expenses - was released to all five franchises, who naturally, in this business, happen to be each other's competitors.
Cricbuzz understands that this episode began when the PCB, hoping to gain tax benefits from the federal and provincial governments for the franchises, asked the five franchises to submit their financial accounts after they claimed to have failed to breakeven despite the PSL now being three years old. The PCB then merged the accounts into a document and sent e-mails to relevant authorities for tax exemptions. To demonstrate the board's efforts, PCB chief operating officer Subhan Ahmed then forwarded the same e-mail to the franchises.
What further aggravated an already tense situation was his claim in a December 5 meeting that measures were being taken to ensure transparency. It led to a heated exchange between Ahmed and a franchise owner. PCB chairman Ehsan Mani, who happens to be a chartered accountant, issued an apology to all the franchises.
"I think it was probably a mistake but this is not something one expects from a professional organization," a team owner told Cricbuzz. "It is certainly the lack of understanding about confidentiality. All over the world, the financial records are expected to be kept confidential. I don't understand why Subhan [Ahmed] released the details. You don't need to be a chartered accountant to understand the gravity of the situation.
"It is ethically wrong and the confidence of the franchises is shaken. The PCB wanted to see whether we are in losses or not. They could have blurred the teams' names and forwarded the e-mail. The idea behind providing them the information was to curate a workable financial model in which there's a win-win situation for both parties.
"The PCB is making money, the sponsors are getting the eyeballs, the fans are enjoying cricket as it is now returning to Pakistan, but what are the franchises getting out of the PSL?"
And, how did the owner feel about his financial details being with the other franchises? "It shouldn't have happened, but I am happy to know what others have been spending," he chuckled.
With the Pakistani rupee devaluing and the US dollar being the PSL currency and the PCB signing a new commercial and sponsorship deals - with the sale of TV rights nearing USD 40 million - the franchises are eager to rework the PSL financial model.
Link: https://www.cricbuzz.com/cricket-ne...ricket-board-puts-out-their-financial-details
Cricbuzz understands that this episode began when the PCB, hoping to gain tax benefits from the federal and provincial governments for the franchises, asked the five franchises to submit their financial accounts after they claimed to have failed to breakeven despite the PSL now being three years old. The PCB then merged the accounts into a document and sent e-mails to relevant authorities for tax exemptions. To demonstrate the board's efforts, PCB chief operating officer Subhan Ahmed then forwarded the same e-mail to the franchises.
What further aggravated an already tense situation was his claim in a December 5 meeting that measures were being taken to ensure transparency. It led to a heated exchange between Ahmed and a franchise owner. PCB chairman Ehsan Mani, who happens to be a chartered accountant, issued an apology to all the franchises.
"I think it was probably a mistake but this is not something one expects from a professional organization," a team owner told Cricbuzz. "It is certainly the lack of understanding about confidentiality. All over the world, the financial records are expected to be kept confidential. I don't understand why Subhan [Ahmed] released the details. You don't need to be a chartered accountant to understand the gravity of the situation.
"It is ethically wrong and the confidence of the franchises is shaken. The PCB wanted to see whether we are in losses or not. They could have blurred the teams' names and forwarded the e-mail. The idea behind providing them the information was to curate a workable financial model in which there's a win-win situation for both parties.
"The PCB is making money, the sponsors are getting the eyeballs, the fans are enjoying cricket as it is now returning to Pakistan, but what are the franchises getting out of the PSL?"
And, how did the owner feel about his financial details being with the other franchises? "It shouldn't have happened, but I am happy to know what others have been spending," he chuckled.
With the Pakistani rupee devaluing and the US dollar being the PSL currency and the PCB signing a new commercial and sponsorship deals - with the sale of TV rights nearing USD 40 million - the franchises are eager to rework the PSL financial model.
Link: https://www.cricbuzz.com/cricket-ne...ricket-board-puts-out-their-financial-details
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