So where are these guys and why they are not paying the money? Saying all this doesnot make it happen in the real world. Forbes estimate 100 billionaires in india in USD terms there are many more billion dollar companies. When you have many potential investors then some will invest, when there are few such investors you will have issues like you have in PSL, a small salary cap.
People wont throw 100cr pkr just because they have it.
The PSL venture was always risky. It was talked about by the PCB in 2011-12 but then PCB officials didn't have the balls to under take it because they knew that Pakistan was in no position to host an international game in Pakistan, that foreign players in general were not going to come to Pakistan, that having poor quality foreign players would not go down well with the broad casters and after spending a lot of money decided to shelve the idea.
Najam Sethi on the other hand while acknowledging so many risks and uncertainties involved had the approach whether risky or not, whether the league will make money or not, the PCB has to take the risk and do it even if the league cannot be played in Pakistan.
In 2015 when the PCB first invited bids for PSL Franchises, they were expecting atleast 10-15 interested parties but only only 5-7 parties showed up. All of them offered very low bids for the teams but Sethi personally implored them to increase their bids by $500,000 to $1,000,000 each using the patriotism angle, the fact that Pakistan needs a league of this nature to highlights its soft image to the world, to show the world about our passion for cricket and the franchise owners obliged.
The business model of the PSL is that each Franchise has to pay an annual fee to the PCB for the next 10 years
Karachi Kings has to pay $2.6 million per year
Lahore Qalanders has to pay $2.5 million per year
Islamabad United has to pay $1.6 million per year
Peshawar Zalmi has to pay $1.5 million per year
Quetta Gladiators has to pay $1.1 million per year
These are the amounts in accordance with the 10 year agreements signed with the PCB in 2015. Because the PSL was felt to be very risky, uncertain TV broadcasters did not give the PCB a very high amount for it either.
In 2017 when the PCB Launched the 6th team Multan Sultans in comparison to 2015 this time there were 30 interested parties who came to bid for the 6th team and the PCB sold the 6th team to Schon group where they have agreed to pay the PCB $5.2 million per year for the next 8 years. This is progression and proof that now more interested parties are convinced that the PSL is not as risky to get involved in as first thought. If the PCB launches the 7th and 8th team in the future it is for certain they can get much better deals in the future.
Overall the PCB will get $15 million from the PSL Franchises and this money is used to host the PSL and anything left over is used by the PCB for undertaking development activities from cricket in the country.
Bottom line the PSL has potential to grow especially considering that the top most rich Pakistani's who number 40-50 haven't even gotten involved yet. How to engage them, how to attract and convince them is up to the PCB, the success of the PSL and the PSL coming back home for sure.
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