Should the PCB accept the PSL franchises demands for perpetual ownership?

[Savak]

According to news reports, the PSL Franchise owner in their first meeting with Mohsin Naqvi demanded that they be allowed to have perpetual ownership rights of their teams under the pretext of we invested in the PSL when no one was interested, we have invested a lot of blood, sweet, money in our PSL franchises and it is only fair that we be granted permanent ownership of the teams.

The PCB in my view should not agree or accept to this. We have already seen how some of these Franchise owners have poorly managed their Franchises and basically treated it as a side part time gig i.e. Karachi Kings, Quetta Gladiators and even Islamabad United. In stark contrast, IPL franchises operate 365 days a year, 24/7.

Karachi Kings should have fully exploited their Karachi and ARY affiliation and should have struct a bombastic appeal with Karachites but we have seen how disasterous their appeal is locally with the empty stadiums in Karachi.

PCB should tell the PSL franchise owners to take a hike and should continuously be on the look out for more interested Franchise bidders who will have more compelling ideas, vision and marketing strategies for the franchises. These franchise owners need to be put on notice and there has to be competition otherwise they will have zero incentive or motivation to improve things.

 

[cricketjoshila]

The only money PCB makes is from the franchisee fees. Else it's not a very profitable venture for the PCB.

 

[Savak]

The only money PCB makes is from the franchisee fees. Else it's not a very profitable venture for the PCB.

Can and should the PCB trust the PSL Franchise owners with permanent ownership? I don't think so. There has to be competition for Franchise owners in the market.

 

[Major]

WHat does this mean? Franchises have to pay more fees in future?

How does IPL ownership works? @cricketjoshila

 

[Savak]

WHat does this mean? Franchises have to pay more fees in future?

How does IPL ownership works? @cricketjoshila

This means the Franchise owners own their teams forever and the PCB has no right to take it back from them. Am personally against this move. PCB should sell rights for every 2-3 years but there has to be competition for franchise owners in the market.

 

[Asad T]

This means the Franchise owners own their teams forever and the PCB has no right to take it back from them. Am personally against this move. PCB should sell rights for every 2-3 years but there has to be competition for franchise owners in the market.

I am for perpetual ownership. If it's only for 2-3 years, the owners will take even less interest IMO because it would just be a short term project for them and this could ruin cricket even more.

Perpetual ownership means they would actually have to spend a lot more time grooming young talent because thats the most cost effective way of building a team. This is also best for grass roots cricket because one needs more than 2-3 years to groom a young cricketer. If it's 2-3 years then there is no point for them to groom 17 year old emerging tallents because when they are really ready, the ownership would change.

 

[DeadlyVenom]

Perpetual ownership is fine but they must have some metrics they need to meet over a period of time.

Right now the Karachi and Quetta franchises are complete duds.

 

[Savak]

I am for perpetual ownership. If it's only for 2-3 years, the owners will take even less interest IMO because it would just be a short term project for them and this could ruin cricket even more.

Perpetual ownership means they would actually have to spend a lot more time grooming young talent because thats the most cost effective way of building a team. This is also best for grass roots cricket because one needs more than 2-3 years to groom a young cricketer. If it's 2-3 years then there is no point for them to groom 17 year old emerging tallents because when they are really ready, the ownership would change.

PCB should include clauses which will give them the right to buy back the Franchise at a certain cheap price if the Franchise Owners don't meet certain standards and run the franchise unprofessionally.

 

[cricketjoshila]

WHat does this mean? Franchises have to pay more fees in future?

How does IPL ownership works? @cricketjoshila

10 years they pay/paid franchisee fees. Then revenue sharing.

 

[Cpt. Rishwat]

The only money PCB makes is from the franchisee fees. Else it's not a very profitable venture for the PCB.

Are you sure? PSL games are being broadcast on Sky Sports, the biggest media subscription channel in the UK. They must be paying money for the rights to broadcast.

 

[cricketjoshila]

Are you sure? PSL games are being broadcast on Sky Sports, the biggest media subscription channel in the UK. They must be paying money for the rights to broadcast.

Point is how much.Just because its sky doesn't mean its a big amount. And remember PSL rights for Pakistan is 14.5mn. So whatever PCB gets elsewhere will be a lot less.

To top this all, 90 percent of all revenues go to franchisees. PCB only gets 10 per cent.

 

[Cpt. Rishwat]

Point is how much.Just because its sky doesn't mean its a big amount. And remember PSL rights for Pakistan is 14.5mn. So whatever PCB gets elsewhere will be a lot less.

To top this all, 90 percent of all revenues go to franchisees. PCB only gets 10 per cent.

Point is, franchise fees are not the only money the PCB makes from franchise fees. Or at least that much is unclear as of yet.

 

[cricketjoshila]

Point is, franchise fees are not the only money the PCB makes from franchise fees. Or at least that much is unclear as of yet.

PCB gets only 10 per cent of revenue and has to share the entire cost of organising the tournament. So there isn't anything left there.

PCB's main profit is from the franchisee fees.

 

[Cpt. Rishwat]

PCB gets only 10 per cent of revenue and has to share the entire cost of organising the tournament. So there isn't anything left there.

PCB's main profit is from the franchisee fees.

So the risk taken is mostly by the Franchises, which is as you would expect in any such operation. That is probably why they are demanding perpetual ownership, although I don't agree that it should be granted.

 

[cricketjoshila]

So the risk taken is mostly by the Franchises, which is as you would expect in any such operation. That is probably why they are demanding perpetual ownership, although I don't agree that it should be granted.

If they are willing to reduce their revenue share to 50 per cent then PCB can consider.

Else what's in there for PCB?

 

[Cricket Warrior]

PCB is considering allowing franchises to directly sign marquee players

A proposal has surfaced allowing PSL franchises to directly negotiate contracts with foreign stars, enabling teams to sign international players for future seasons.

According to sources, the situation remains unresolved ahead of the tenth edition of the Pakistan Super League (PSL), as franchises have not yet received their revenue share from the ninth edition due to outstanding payments from key stakeholders. Additionally, a triangular series, scheduled outside the Future Tours Program (FTP) and the Champions Trophy, threatens to disrupt the 2025 PSL's usual timeframe.

The Pakistan Cricket Board (PCB) has proposed a window between April 10 and May 25, with final dates yet to be confirmed. However, potential overlap with the IPL could lead to challenges such as player unavailability and reduced revenue.

Insiders have revealed that the PCB is considering granting franchises the ability to directly negotiate with marquee international players. Each team may be allowed to sign one or two star players, offering them higher salaries to attract top talent. The PCB is also expected to contribute to these payments.

This year, $500,000 from the broadcast deal was earmarked for such signings, and a similar allocation is planned for next year. However, player availability remains uncertain, particularly for those not involved in the Indian Premier League (IPL). A few months ago, the PCB approached other boards to discuss player availability, but no firm agreements have been made since.

Franchises have asked the PCB to evaluate the potential impact on media and commercial deals if the PSL coincides with the IPL. Interestingly, both the PCB and the franchises are reluctant to take responsibility for scheduling PSL matches during the IPL window.

When the franchises raised concerns via email, the PCB responded that the scheduling decision was a joint one. However, the franchises dispute this, claiming they were not given a choice. Initially, they were informed the PSL would take place in October or November, which was later denied.

Discussions then shifted to hosting the tournament in June or July, despite concerns over extreme heat in Pakistan during that time. The PCB even considered hosting playoff matches in England, but the England and Wales Cricket Board (ECB) has since apologized for being unable to accommodate this request.

 

[CleverSir]

Naqvi meddling with everything. The draft is unique to the PSL. Let it play out.

 

[aqeelPK]

Local broadcasters are already suffering huge losses on international cricket deals. Seems like they will face the same in PSL 10 (if it happens) given the overlapping schedule with the IPL, no or lack of intl stars participation and declining fan following of the local stars. I feel sorry for the sport broadcasters who had only one product to sell i.e. cricket whose each and every organ is dying at unreal speed.

 

[Savak]

The PCB at the moment is earning $15 million in Franchise Fees alone from the PSL Franchises. The Franchises complain that given Pakistan's poor economy they are unable to earn much revenue and because of the hefty franchise fees they are either operating at break even or at losses. Multan Sultans is paying a hefty $6.3 million in Fees alone and i doubt they even recover or earn the same amount.

Right now the PCB is surrendering 95-98% of the PSL Central Pool which includes broadcasting revenue, commercial sponsorships, title sponsorship, gate money to the Franchises.

Should the PCB agree to eliminate the Fees and in exchange agree to take 50% of the Central Pool and distribute the rest to the Franchises?

Will eliminating the burden of the Franchise Fees on the Franchises enable them to invest the spare funds in increasing their purses for players, coaching salaries and help to attract the top foreign players who play in the IPL, SA T20, ILT20, MLC T20?

 

[Wasim Ghulam]

If PCB eliminates franchise fee , Whats in it for PCB? they already surrendering 98% of revenue

 

[Devadwal]

No they can't because PSL is not profitable for them. From where they will earn the Money? Not much from broadcasting, sponsors etc.

 

[Vikram1989]

pcb already giving almost everything and not getting anything much.Franchises should try to generate revenue and profit for themselves and pcb.

 

[Bhaijaan]

Perpetual ownership in cricket leagues isn’t possible for now because the product is BCCI, PSL themselves and not the franchises. They don’t “own” cricket and they don’t “own” the players even with illusion created by the whole auction dramebazi. The auction is a licensing of BCCI, PCB “owned” cricketers being allowed to work 1-2 months for these leagues. The boards overall “own” the cricketers and without their NOC they can’t play cricket anywhere in the world.

In the NBA or the Football leagues, there is no separate governing body which controls the game, the clubs collectively own the respective leagues and also face consequences for repeated bad performances.

Cricket can afford to do that for now because the game isn’t big enough globally and there are limited earning options for players.

 

[Bhaijaan]

Although technically there is no perpetual ownership in IPL, but BCCI is ok with the same franchise owners for as long as they’re able to abide by their annual fee obligations (20% cut from overall revenue pool). BCCI does due diligence of reputation and financial status of the owners.

 

[Savak]

If PCB eliminates franchise fee , Whats in it for PCB? they already surrendering 98% of revenue

The proposal is to eliminate the franchise fee but to instead pocket 50% of the revenue and distribute the remaining 50% to the franchises.

If the franchises are no longer required to pay the franchise fee, it eliminates $15.5 million in fees for them.

If the annual revenue from the PSL central pool is $20-25 million, the PCB still pockets $12.5 million and distributes the remaining $12.5 million to the franchises. But the franchises now that they don't have to worry about the franchise fees, now have greater ability to pump more money in increasing their budgets for salaries to foreign players which improves their ability to get better foreign players.

It's something worth debating

 

[Bewal Express]

According to news reports, the PSL Franchise owner in their first meeting with Mohsin Naqvi demanded that they be allowed to have perpetual ownership rights of their teams under the pretext of we invested in the PSL when no one was interested, we have invested a lot of blood, sweet, money in our PSL franchises and it is only fair that we be granted permanent ownership of the teams.

The PCB in my view should not agree or accept to this. We have already seen how some of these Franchise owners have poorly managed their Franchises and basically treated it as a side part time gig i.e. Karachi Kings, Quetta Gladiators and even Islamabad United. In stark contrast, IPL franchises operate 365 days a year, 24/7.

Karachi Kings should have fully exploited their Karachi and ARY affiliation and should have struct a bombastic appeal with Karachites but we have seen how disasterous their appeal is locally with the empty stadiums in Karachi.

PCB should tell the PSL franchise owners to take a hike and should continuously be on the look out for more interested Franchise bidders who will have more compelling ideas, vision and marketing strategies for the franchises. These franchise owners need to be put on notice and there has to be competition otherwise they will have zero incentive or motivation to improve things.

No. But they should get a discount on renewal

 

[Bewal Express]

The proposal is to eliminate the franchise fee but to instead pocket 50% of the revenue and distribute the remaining 50% to the franchises.

If the franchises are no longer required to pay the franchise fee, it eliminates $15.5 million in fees for them.

If the annual revenue from the PSL central pool is $20-25 million, the PCB still pockets $12.5 million and distributes the remaining $12.5 million to the franchises. But the franchises now that they don't have to worry about the franchise fees, now have greater ability to pump more money in increasing their budgets for salaries to foreign players which improves their ability to get better foreign players.

It's something worth debating

Seems an interesting proposal

 

[GoUgandaCranes]

This screams only one thing & that is "cricket isn't a money making thing in Pakistan".

 

[ElRaja]

no one forced the owners to bid for the teams. when they made their business proposals, they knew what they were getting, and if they calculated wrong, they should bear the burden. quite a few of the team owners already do so little in terms of developing or marketing, or building the product, if you gave them perpetual rights, they would become even less proactive.

sports is huge business, just because pakistan is making a mess of it doesnt mean the core concepts are wrong. i look forward to the auctioning of the franchises for the next ten seaons, and as mentioned before, as far as loyalty goes, the incumbent owners should have the right to keep a franchise at 90% of the top bid.

 

[Savak]

no one forced the owners to bid for the teams. when they made their business proposals, they knew what they were getting, and if they calculated wrong, they should bear the burden. quite a few of the team owners already do so little in terms of developing or marketing, or building the product, if you gave them perpetual rights, they would become even less proactive.

sports is huge business, just because pakistan is making a mess of it doesnt mean the core concepts are wrong. i look forward to the auctioning of the franchises for the next ten seaons, and as mentioned before, as far as loyalty goes, the incumbent owners should have the right to keep a franchise at 90% of the top bid.

Salman Sarwar Butt wants the PCB to make the contracts more iron clad ie make the perpetual rights subject to the franchises meeting various conditions ie a minimum amount of investment in branding, player development, salaries, fan engagement etc and if the franchises don't meet the conditions, the PCB can impose penalties or even take back the franchise.

 

[ElRaja]

Salman Sarwar Butt wants the PCB to make the contracts more iron clad ie make the perpetual rights subject to the franchises meeting various conditions ie a minimum amount of investment in branding, player development, salaries, fan engagement etc and if the franchises don't meet the conditions, the PCB can impose penalties or even take back the franchise.

The conditions will never be enforceable because the franchise owners will band together to pressure the PCB like they have throughout the competition's history. the psl was unproven when it was launched. the product clearly has some demand even if the pcb and the owners havnt been able to monetise it properly. maybe new, more competent owners would help develop it, and maybe even force the pcb to be more professional. and if there isnt a demand for it as an investment then the current owners have nothing to worry about as they should be able to refranchise for cheaper.

 

[Barragan]

The conditions will never be enforceable because the franchise owners will band together to pressure the PCB like they have throughout the competition's history. the psl was unproven when it was launched. the product clearly has some demand even if the pcb and the owners havnt been able to monetise it properly. maybe new, more competent owners would help develop it, and maybe even force the pcb to be more professional. and if there isnt a demand for it as an investment then the current owners have nothing to worry about as they should be able to refranchise for cheaper.

I agree with this

Maybe newer owners might the best for Pak cricket

Who knows, potentially outsiders are willing to buy?

Professionalism from the outside would also get the pcb in line as well to do better and be more professional

 

[Savak]

The conditions will never be enforceable because the franchise owners will band together to pressure the PCB like they have throughout the competition's history. the psl was unproven when it was launched. the product clearly has some demand even if the pcb and the owners havnt been able to monetise it properly. maybe new, more competent owners would help develop it, and maybe even force the pcb to be more professional. and if there isnt a demand for it as an investment then the current owners have nothing to worry about as they should be able to refranchise for cheaper.

Its funny tho because the values of all the franchises have clearly gone up after ten years even when the owners complain about losses and some of the owners were still complaining what is in it for me to develop my franchise, build it if i have to end up paying a higher price for it in the end. Their entire mindset it wrong and seeks of short term rent seeking. It is no wonder why our neighbouring country has like 100 millionaires and billionaires whereas a country like Pakistan only has a handful of millionaires at best.