The thorny relationship between PCB and PSL franchises

[Savak]

Pakistan Super League franchises drag PCB to court over league's financial model

TN Sports Desk

Updated Sep 24, 2020 | 21:13 IST

Pakistan Super League franchises have decided to drag PCB to the court over the current financial model of the league, which they feel is only benefitting the board.

The six Pakistan Super League (PSL) franchises have collectively sought legal action in a bid to force the Pakistan Cricket Board (PCB) to change the financial model of the league. It has been a long-running demand from the franchises, but by submitting a law suit in the Lahore High Court, the franchises have escalated it.

Their central grievance is that the PSL has made the PCB richer while the franchises have run losses every season. The petition asks the court to direct the PCB to "formally redress the grievances of all franchises" and "revise the model of PSL in accordance with its statutory mandate and make it financially viable".

The move also means that the PSL is now entangled in legal disputes with two of its major stakeholders, the broadcast-rights holder and its franchises. Last week, the PCB terminated the contract of PSL's international media-rights holder, Techfront, citing a series of breaches, including matters relating to payments. The PCB is also in arbitration against PSL's local media-right holders - Blitz - who went to court for a stay order against the board's move to cash in an insurance guarantee from the broadcaster (held as security for the deal) of PKR 1 billion. These disputes with the broadcaster - who constitute a sizeable portion of the income franchises ultimately make - have played a part in pushing the franchises to this move.

"The PCB is surprised to hear that the franchisees have opted to take a legal route despite our recent invites on two separate occasions to discuss the financial model in good faith and as part of our relationship building," the PCB told reporters. "The PCB cannot comment on the exact contents of the matter as it is yet to receive any notice from the honourable court. We understand a hearing is set for Friday, following which we will be able to comment."

The move is a culmination of years of frustration for the franchises, almost from the moment the PSL began, about the overall financial model of the league and its revenue distribution. A number of issues make up the concern about the financial model, from wanting tax exemptions, to better distribution of gate money, to more favourable exchange rate terms. The bottom line that has finally prompted this action, however, is the same for all franchises: no franchise has broken even in the first four full seasons of the league, and the addition of an extra franchise - the Multan Sultans - has lessened everyone's share from the central pool the PCB has set up for revenue.

The PCB has insisted that once the league moves back to Pakistan properly then not only will the franchises be able to move towards breaking even because of the lower costs of running a league there rather than in the UAE, but it will also generate "higher economic activity in the country". This season - the league's fifth - was the first to be fully played in Pakistan, but it was hit by the Covid-19 crisis. Four matches of the playoffs could not be played and have been rescheduled for November behind closed doors.

"Given the uncertainty in the situation, it cannot be reasonably predicted if the matches will resume in-stadia and in the same manner as before which clearly means that the profitability of the franchisees will drop further since there may not be enough gate receipts," read the petition. "In addition to the same, it is an admitted fact by PCB that they have terminated their contract with the international broadcaster and have been involved in legal proceedings with their domestic and international broadcasters. This further affects the Central Pool Income and places the broadcasting rights and revenues from the same in jeopardy. This has created further uncertainty despite which PCB is insisting on the payment of security for the franchise fee in its entirety."

The petition further reads: "PCB is not only an organizer of the tournament but is also the regulator who is bound to act in a fair, reasonable and equitable manner and insistence upon the payment of security before the situation has settled and uncertainty relating to COVID 19 has subsided, is unreasonable. It is also pertinent to note that while the uncertainty has affected the revenues of the Petitioners, PCB has continued to ensure that its own profits and revenues from the franchise fee are not affected which demonstrates the exclusive power that it exercises as the regulator."

The extent of the franchises' financial problems are clear. A few months ago, Islamabad United were weighing up an option to sell the franchise and have effectively let go of all in-house employees. The Lahore Qalandars have considered selling a minority share.

It isn't as if the PCB hasn't engaged with the franchises on the matter and at the time of the league's inception, it is understood verbal assurances had been given that the model would be revisited and revised from time to time (some tweaks have been made over the years). The board has offered to revisit the financial structure and discussions on some of the specific issues have been ongoing - such as the fact that a plummeting of the value of the Pakistani rupee against the US dollar has meant that annual franchise fees have rocketed but that revenue, pegged to an old fixed dollar rate, has fallen.

There have been several meetings on the matter with various suggestions put forward but little definitive action has resulted from it. And the issue reared its head when the board was late in distributing the franchises' share of the revenue generated during the 2019 season. This led to all six owners refusing to submit their bank guarantees, a key part of this petition.

There is some weight to what might be the PCB's counter-argument, that the franchises signed on to these terms and conditions knowingly and that five seasons of this arrangement have passed. But the franchises argue in the petition that the entire framework of the agreements is excessively and unreasonably restrictive.

"This is evident from the fact that the Franchise Agreements was made a part of the bid documents which foreclosed any option to negotiate the Franchise Agreement and the Petitioners were forced to accept the terms which were onerous, restrictive, one sided and unfair."

Link: https://www.timesnownews.com/sports...-to-court-over-leagues-financial-model/657610

 

[cricketjoshila]

They bid knowing the terms and conditions. Running a sports team is a costly affair and involves expenses and takes years to break even. If the owners didnt have the stomach to take the hit, they should return the teams to PCB who can re auction them.

 

[Savak]

They bid knowing the terms and conditions. Running a sports team is a costly affair and involves expenses and takes years to break even. If the owners didnt have the stomach to take the hit, they should return the teams to PCB who can re auction them.

I suspect this is what might happen. The PCB may feel it can get better buyers going forward

 

[shah_1]

court can't do nothing

 

[JaDed]

It's a long term investment, also if they have issue revenue being shared then how is PCB considering another team? Maybe they just want to stop another team from being added?

 

[Savak]

Shoaib has been bragging a lot about buying a team in the PSL and about bringing increased sponsorship to the PCB. Even today on the show he was telling Dr Nauman Niaz that he was on PCB's side and if any of the Franchise Owners threatened to terminate the agreement, the PCB was least bothered and that he will help the PCB find other owners with deep pockets.

 

[Savak]

It's a long term investment, also if they have issue revenue being shared then how is PCB considering another team? Maybe they just want to stop another team from being added?

According to the news reports, the small PSL teams like Quetta, Peshawar, Islamabad are at break even or just have a small profit, its the biggest and most expensive teams like Lahore and Karachi who are facing losses. IMO if the PCB allows the franchises to dictate to them, it will dilute the value of the league and will send the message that the franchise owners can dictate terms, it should be the other way around where the PCB is dictating terms of the Franchises and anyone who has a problem can take a hike and the PCB will find another buyer

 

[JaDed]

According to the news reports, the small PSL teams like Quetta, Peshawar, Islamabad are at break even or just have a small profit, its the biggest and most expensive teams like Lahore and Karachi who are facing losses. IMO if the PCB allows the franchises to dictate to them, it will dilute the value of the league and will send the message that the franchise owners can dictate terms, it should be the other way around where the PCB is dictating terms of the Franchises and anyone who has a problem can take a hike and the PCB will find another buyer

That's probably how it will happen under Imran...

 

[bala977]

They bid knowing the terms and conditions. Running a sports team is a costly affair and involves expenses and takes years to break even. If the owners didnt have the stomach to take the hit, they should return the teams to PCB who can re auction them.

This! Have no sympathies for the franchises' here... you can't sign a contract and then back pedal .. I thought this was an Indian curse, but looks like it is a sub continent curse.

I don't believe any professional club can start making money for the first few seasons ... they will be loss leaders - it is upto the franchise to establish the brand and monetise it like T-shirts, iPhone apps etc.- this is not PCB's problem. This takes time - I hope the board stays firm.

IPL is a special case due to the market size & absolute monopoly and even in that case, some of the clubs like Royals were losing initially (and may still be).

 

[Savak]

Questions have to be asked as to whether the Franchises have been properly managed and whether have properly tapped into various revenue generating ideas or not.

 

[Ashmal]

This! Have no sympathies for the franchises' here... you can't sign a contract and then back pedal .. I thought this was an Indian curse, but looks like it is a sub continent curse.

I don't believe any professional club can start making money for the first few seasons ... they will be loss leaders - it is upto the franchise to establish the brand and monetise it like T-shirts, iPhone apps etc.- this is not PCB's problem. This takes time - I hope the board stays firm.

IPL is a special case due to the market size & absolute monopoly and even in that case, some of the clubs like Royals were losing initially (and may still be).

Agreed.

Even in IPL, I read somewhere that some IPL franchises had to wait till 2018 to make profit.

 

[Bewal Express]

Its needs to be a model that benefits both. If its one sided then it wont work. I hope they work it out quickly

 

[Mamoon]

Javed Afridi cannot be party to this. He has managed to milk the Zalmi brand like no tomorrow. He is a brilliant businessman - no franchise owner has been able to do what he has managed.

4 years on, the Qalandars, Kings and Gladiators are still limited to cricket while Javed Afridi is selling perfumes and eastern formal wear under the Zalmi brand.

 

[unemployedgm]

The initial model never made sense. The franchises are technically leased. It is almost impossible to make a decent return under that model as Player Salaries Plus Fees is approximately $4m. Leaves little margin to make money.

 

[MenInG]

PCB statement

Lahore, 25 September 2020:

The Pakistan Cricket Board’s legal representatives were present before Mr Justice Sajid Mahmood Sethi on Friday and received notices for hearing in respect of the Writ Petition filed by the six franchise owners, fixed today as an Urgent Petition.

The counsel for PCB, Mr Taffazul Rizvi, raised a preliminary objection with regard to the maintainability of the Writ Petition and also apprised the Honourable Judge that the PCB had twice this week invited the franchise owners to meet and discuss the financial model for HBL Pakistan Super League with a view towards redressing grievances in good faith.

Mr Rizvi also informed the Honourable Court that as per the agreement, the appropriate mechanism for any dispute resolution between the PCB and the franchise owners was through initiation of arbitration and therefore, the franchises’ Writ Petition was misdirected and was liable to be dismissed.

On the Honourable Court’s instructions, the PCB will be submitting its written comments by Wednesday, 30 September, which is the next date of hearing.

“The PCB remains committed to working with its partners, but in this matter, it is surprised and disappointed that despite its offers to engage in discussions over the financial model and whilst being aware of the appropriate forum for dispute resolution, the franchisees approached the Honourable High Court.

“The PCB looks forward to addressing all queries and legal-objections before the Honourable Court and then to find solutions that are practicable and acceptable to all parties involved.”

 

[Thunderbolt14]

Taffazul Rizvi strikes again.

 

[Titan24]

Everyone can see what this league is gonna become as the 5th season (First ever completely in Pakistan) showed glimpses of. Franchises knew the business model from the start and with the statement like we dont know when people will be able to come into stadium, they are just trying to milk more revenue share so that in next few years with stadiums filling in, overall brand value going much higher with PSL being in Pakistan they can just make fast and big profits. They are businessmen so that’s understandable but that should be within the legal boundaries.

Franchise value of every single league is much higher than before as the induction of Multan’s franchise in only 3rd season showed which went for around 3 times the price of the previous most expensive franchise when that was sold in season one. Not to forget there were 30 odd serious bidders at that time.

These franchise owners are confused as they dont wanna leave because they know the future worth of their franchise and possible revenues but at the same time they just want to cut short the forecast period and want quick profits.

PCB is on really strong footing here and probably thats why franchises are uncomfortable. If any owner wants to leave the franchise, PCB can sold that again at a much higher price so they wont have much issues. Though these franchise owners were initial investors so PCB should do its best to sort the things out.

 

[Titan24]

Taffazul Rizvi strikes again.

Harvey Specter of PCB.

 

[Savak]

Khuda kay Liye i hope the PCB keeps the Panoti Taffazul Rizvi far away from this case who will otherwise not only find ways to extract maximum billable time as possible but also end up ultimately losing the case as well for the PCB.

 

[MenInG]

Taffazul Rizvi strikes again.

He is doing PCB's bidding.

 

[Saj]

This was always going to get ugly....it's the Pakistani way.

The more revenue generated, the more the franchise owners want of the slice of cake.

They feel that they are getting a raw deal in terms of revenue and are being milked by the PCB.

Could get very messy this.

 

[Savak]

This was always going to get ugly....it's the Pakistani way.

The more revenue generated, the more the franchise owners want of the slice of cake.

They feel that they are getting a raw deal in terms of revenue and are being milked by the PCB.

Could get very messy this.

Contracts are contracts at the end of the day, the current terms/conditions are what they signed up for. If they are not happy, then can take a hike and may way for other parties.

 

[unemployedgm]

In the current model franchisees are franchisees. They are not true owners of the franchise. Losing money is tolerable if you can benefit from the increase in Future Cash Flows and Valuation.

The owners apart from Ali Naqvi are traditional Pakistani Businessmen. They didn’t conduct their due diligence. They saw an opportunity to dry clean money, promote themselves and their brands and nothing else.

An associate of Salman Iqbal once asked me “how do we make cash.” You’re in the wrong business if you think you’re going to make cash. You have to build Future value that will eventually turn into cash. It’s a long process in an underdeveloped business market like Pakistan where sports organizations don’t know how to attract sponsorship or leverage it. Brands don’t know how to leverage sports to activate there brands. Other revenue streams are also poorly managed and optimized.

The PCB is at fault because they created a model that benefits them only. This needs to be a partnership and it isn’t. In the end both parties seem uneducated about building a league.

 

[shah_1]

In the current model franchisees are franchisees. They are not true owners of the franchise. Losing money is tolerable if you can benefit from the increase in Future Cash Flows and Valuation.

The owners apart from Ali Naqvi are traditional Pakistani Businessmen. They didn’t conduct their due diligence. They saw an opportunity to dry clean money, promote themselves and their brands and nothing else.

An associate of Salman Iqbal once asked me “how do we make cash.” You’re in the wrong business if you think you’re going to make cash. You have to build Future value that will eventually turn into cash. It’s a long process in an underdeveloped business market like Pakistan where sports organizations don’t know how to attract sponsorship or leverage it. Brands don’t know how to leverage sports to activate there brands. Other revenue streams are also poorly managed and optimized.

The PCB is at fault because they created a model that benefits them only. This needs to be a partnership and it isn’t. In the end both parties seem uneducated about building a league.

What is so unfair about the deal? Care to explain

 

[Saj]

Contracts are contracts at the end of the day, the current terms/conditions are what they signed up for. If they are not happy, then can take a hike and may way for other parties.

From what I hear, some of the promises and assurances that were given to them by the PCB have not been adhered to and delivered.

 

[cricketjoshila]

From what I hear, some of the promises and assurances that were given to them by the PCB have not been adhered to and delivered.

If the contract specified a minimum guaranteed revenue then its different.

 

[CleverSir]

This will be likely thrown out by the courts. If the PCB had solid contracts in place. Also, need to consider the league has played only 5 seasons and is just now starting to establish itself as a brand. It was always going to be a 10+ year investment as all start-up leagues are. The MLS in the US is now around 25 years and still a lot of clubs lose money. I've read articles where it was said that the IPL only started becoming profitable for franchise owners around the 7-8th seasons.

These Pakistani owners need to show more patience and actually try to increase their brands to bring in more money. Like [MENTION=131701]Mamoon[/MENTION] said earlier in the thread, the Zalmi owner has been brilliant with getting his teams brand out there. Yet, you drive through Lahore, the Qalandars are nowhere to be seen. Never been to Karachi, but I suspect the same. Can't put it all on the PCB. Owners need to look at other leagues around the world.

 

[MABA]

Multan Sultan owners are paying $6 million plus per year now. Thats 3 times what Karachi Kings owners pay. If the owners are not happy PCB should just buy back the teams and resell them. You can imagine teams like Karachi and Lahore will go for at least 10 million per year. Especially since PSL is now fully in Pakistan and the league is much bigger.

 

[Slog]

Ipl teams took years to break even and even now I’m not sure if all them are doing great financially

 

[naseem]

Taking PCB to court won't be fruitful.........It takes years KKR TOOK almost 8 years to break even.....

 

[shamaan]

Multan Sultan owners are paying $6 million plus per year now. Thats 3 times what Karachi Kings owners pay. If the owners are not happy PCB should just buy back the teams and resell them. You can imagine teams like Karachi and Lahore will go for at least 10 million per year. Especially since PSL is now fully in Pakistan and the league is much bigger.

6 million for what and why is it 3 times what karachi pay

 

[shah_1]

PSL is big brand now in Pakistan, many others will try to buy the teams if they can't continue. PCB should not soften its stance due to blackmailing. The profit earned by PCB is used to promote cricket in Pakistan, not to amass wealth.

 

[Saj]

I wonder what potential franchise owners make of this situation.

Can't be very re-assuring for them.

 

[Savak]

I wonder what potential franchise owners make of this situation.

Can't be very re-assuring for them.

Same thing was said when Schon group exited last time but in no time Ali Tareen came up with the highest franchise price of $6.3 million

 

[Saj]

Joint press release from the franchises:

We, the six Franchisees of the HBL Pakistan Super League (“PSL”) are committed towards the promotion of cricket in Pakistan and continuing with our ongoing contributions towards rebuilding the international image of Pakistan. The Franchisees have and will continue to work towards the end goal of promoting cricket in
Pakistan which has opened the doors for international players to come and play in the country.

While the Franchisees have been dedicated towards realizing the vision and goal of the promotion and development of the sport of cricket and at the same time building a positive image of Pakistan, unfortunately, we have serious reservations with the existing financial arrangement and model of PSL. PCB has demonstrated an unwillingness to discuss, deliberate or revise the arrangement in a serious manner forcing the hand of the Franchisees time and again. Since the inception of the league, the Franchisees have collectively suffered losses in billions of rupees while the PCB has made billions.

In light of the losses suffered by us over the past five seasons and PCB’s constant unwillingness to consider our grievances seriously, all six Franchisees have been constrained to approach the Honorable Lahore High Court against PCB. We would like to reiterate at this juncture our firm commitment to the sport and clarify that PSL Franchisees have always tried to solve their disputes with PCB amicably and without the interference of a third party. However, PCB’s disinclination in addressing our grievances has left us with no other alternative but to have the matter decided by the Honourable Court. Therefore, a writ petition was filed against PCB which was fixed yesterday before Justice Sajid Mehmood Sethi of the Lahore High Court. The petitioners had contended in the Writ Petition that the existing model of PSL both in administrative and contractual sense is
contradicting the objects and purpose of promoting cricket in Pakistan which is a statutory mandate of PCB under The Sports (Development & Control) Ordinance 1962. Out of respect for the proceedings before the
Honourable Lahore High Court, we shall not be commenting on the same till such time that the matter is pending.

We are committed towards finding a workable solution and making PSL a success for everyone involved.

 

[Saj]

Same thing was said when Schon group exited last time but in no time Ali Tareen came up with the highest franchise price of $6.3 million

That won't work forever.

 

[Saj]

PCB has demonstrated an unwillingness to discuss, deliberate or revise the arrangement in a serious manner forcing the hand of the Franchisees time and again. Since the inception of the league, the Franchisees have collectively suffered losses in billions of rupees while the PCB has made billions.

This is fair enough from the franchises.

Seems like PCB has a stranglehold on them and won't let go.

 

[shah_1]

This is fair enough from the franchises.

Seems like PCB has a stranglehold on them and won't let go.

Can a court cancel a contract signed between private bodies? What mandate does it have?

 

[shah_1]

That won't work forever.

PCB doesn't get to play against India like other boards do to sustain themselves. PSL is the only reason that they survived during pandemic and get to spend on domestic cricket

 

[Saj]

PCB doesn't get to play against India like other boards do to sustain themselves. PSL is the only reason that they survived during pandemic and get to spend on domestic cricket

But if one side is making billions and the other side is losing billions, then that situation is not going to be accepted or last forever. One day the status quo will be broken.

 

[cricketjoshila]

Taking PCB to court won't be fruitful.........It takes years KKR TOOK almost 8 years to break even.....

KKR made profit in its 4th year thats 2011-12.

 

[cricketjoshila]

But if one side is making billions and the other side is losing billions, then that situation is not going to be accepted or last forever. One day the status quo will be broken.

The sides you mention are PCB and The franchises?

 

[MenInG]

Air is poisoned between both sides. This should have been resolved amicably in a closed room

 

[Savak]

But if one side is making billions and the other side is losing billions, then that situation is not going to be accepted or last forever. One day the status quo will be broken.

The Franchises can't be trusted. Their financials got leaked and some of them were not even making losses

 

[JaDed]

Taking PCB to court won't be fruitful.........It takes years KKR TOOK almost 8 years to break even.....

Where are you getting your data from?

 

[Saj]

The sides you mention are PCB and The franchises?

Yes, the franchises allege they are losing billions while the PCB is making billions.

 

[Savak]

Yes, the franchises allege they are losing billions while the PCB is making billions.

Hopefully the courts will examine the audited financials of the franchises, question their business decisions, whether they are running the franchise's efficiently and properly.

Once you sign an agreement, it should not be that easy to back out of it otherwise you are setting a dangerous precedent for the future

 

[Savak]

Lol, I wonder if the Franchises were triggered by the $200 million deal the PCB signed with PTV

 

[Savak]

PCB doesn't get to play against India like other boards do to sustain themselves. PSL is the only reason that they survived during pandemic and get to spend on domestic cricket

Wasim Khan mentioned that you can't have an arrangement which the franchises were demanding where the franchises take all of the PSL revenues and profits leaving the PCB with nothing, what is in it for the PCB then?

 

[shah_1]

Wasim Khan mentioned that you can't have an arrangement which the franchises were demanding where the franchises take all of the PSL revenues and profits leaving the PCB with nothing, what is in it for the PCB then?

Recently he has said this?

 

[shah_1]

Hopefully the courts will examine the audited financials of the franchises, question their business decisions, whether they are running the franchise's efficiently and properly.

Once you sign an agreement, it should not be that easy to back out of it otherwise you are setting a dangerous precedent for the future

Look at LQ. Did PCB ask them to spend on talent hunt, and other programs?

 

[cricketjoshila]

Why not follow IPL model?

50:50 share of all the revenues.

 

[shah_1]

Why not follow IPL model?

50:50 share of all the revenues.

Do IPL teams give some sort of money every year as a fee?

 

[cricketjoshila]

Do IPL teams give some sort of money every year as a fee?

They gave a franchisee fee for first 10 years. Now there is no franchisee fee. Just revenue sharing.

 

[cricketjoshila]

Yes, the franchises allege they are losing billions while the PCB is making billions.

Whats the revenue share split ratio?

 

[Saj]

Whats the revenue share split ratio?

It's not officially been disclosed and I've heard differing versions of the split agreement.

 

[Savak]

The franchises should have signed a 5 year agreement instead of a 10 year agreement. Everything depends on what are the agreements that they have signed, if they are trying to pressurize the PCB to revise that agreement then it will set a dangerous precedent for the future

 

[cricketjoshila]

It's not officially been disclosed and I've heard differing versions of the split agreement.

Why so much secrecy?

IPL revenue split is common knowledge.

Pcb should come out and disclose it.

 

[Thunderbolt14]

This tweet was liked by Javed Afridi. I suppose franchises are willing to settle outside of court?

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">“Never start a fight, always finish it”</p>— Salman Iqbal ARY (@Salman_ARY) <a href="https://twitter.com/Salman_ARY/status/1309930125157310464?ref_src=twsrc%5Etfw">September 26, 2020</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

 

[MABA]

6 million for what and why is it 3 times what karachi pay

$6 million is what the franchise fee that the owners of Multan Sultans pay to PCB yearly. The reason that it is 3 times what Karachi pays is because this was the additional team that was added in year three. By that time the league had grown quite a bit and its popularity was quite evident.

Karachi was one of the original teams and the future of PSL was unknown hence they got the franchise at a bargain price even though at the time it was the most expensive team. If they were to resell the teams their value would be at least 3-4 times their original prices.

 

[shamaan]

$6 million is what the franchise fee that the owners of Multan Sultans pay to PCB yearly. The reason that it is 3 times what Karachi pays is because this was the additional team that was added in year three. By that time the league had grown quite a bit and its popularity was quite evident.

Karachi was one of the original teams and the future of PSL was unknown hence they got the franchise at a bargain price even though at the time it was the most expensive team. If they were to resell the teams their value would be at least 3-4 times their original prices.

Wow so bisicaly even if they cancel the contract pakistan wont exactly loose out but just morals say rather keep the teams in.

Thankyou

 

[FreePalestine]

KKR made profit in its 4th year thats 2011-12.

You seem to know your stuff on the business side of things. Do you know where I can get data on the accounts, balance sheet of various leagues and franchises?

 

[Saj]

There is no way any company will continue to incur huge losses, do nothing about it, while others make lots of money.

Nobody is that stupid.

 

[cricketjoshila]

You seem to know your stuff on the business side of things. Do you know where I can get data on the accounts, balance sheet of various leagues and franchises?

Bcci balance sheet is available on its website. So are the balance sheet of most boards. It also contains revenue made from leagues.

Its difficult to get the balance sheet of franchisees.

In India most media outlets file an application to get the balance sheet of the franchisees from the ROC. You can Google and you will get some info on profits and revenues of all ipl franchisees.

Some Ipl franchisees like csk,mi,sr,DC,rcb are owned by listed companies, you can find their financials in the balance sheets filed with the stock exchanges.

 

[MenInG]

Wonder what triggered this? Generally there has been cordial atmosphere between all parties in the past.

 

[Savak]

There is no way any company will continue to incur huge losses, do nothing about it, while others make lots of money.

Nobody is that stupid.

They should not have signed a ten year agreement. I hope the courts first examine whether they have run the franchise properly in the first place

 

[Savak]

Wonder what triggered this? Generally there has been cordial atmosphere between all parties in the past.

According to Dr Nauman Niaz and Rashid Latif, PCBs arrogant attitude where they started to tell the franchises take it or leave it, we find other buyers to replace you etc

 

[Titan24]

Biggest groups of Pakistan are yet to get involved as owners. Slightly decent ones which are still not the biggest are JDW (Multan Sultans) is listed on Karachi Stock Exchange, ARY (Karachi Kings) is one of the biggest media groups and Haier who is owned by Javed Afridi in Pakistan is a partnership with a Chinese company if I am not wrong and is listed on Shanghai Stock Exchange. Overall, the biggest groups of Pakistan are yet to get involved as owners. Some big ones did get involve as sponsors afterwards.

Last franchise was MS which was sold to Schon and then JDW which was grabbed for almost 2.5-3 times the price of previous highest franchise of KK.

PCB can grab huge amounts from some other groups who didn’t want to put in money when PSL started but, I think ethically PCB should try its best to sort the issue out with initial investors and make it attractive for all the parties along with maintaining a decent image for them in the corporate world.

 

[MenInG]

Karachi, Sep 29 (PTI) The Pakistan Cricket Board is trying to pacify the six franchise owners of the Pakistan Super League who have taken the board to the Lahore High Court over the financial model of the T20 event.

The owners of Lahore Qalandars, Quetta Gladiators, Multan Sultans, Karachi Kings, Peshawar Zalmi and Islamabad United have, in a joint petition filed in the court, made it clear they had lost billions of rupees since the inception of the tournament in the absence of a viable financial model.

According to the franchisees, the financial model was tilted in favour of the PCB which had earned billions from the PSL in the last five years, even as the team owners suffered losses.

At a preliminary hearing held last week, the PCB''s legal team took a strong stance on the petition filed by the owners, but sources, aware of the developments, said behind the scenes efforts are being made to settle the matter out of court.

"The PCB realises the gravity of the situation as the PSL is one of its most successful brands and due to the existing economic conditions in Pakistan and globally, it would not be easy for sale of the franchises if the situation got out of control," the source said.

The main objection of the franchisees is that the PCB, despite repeated assurances, had failed to modify the financial model of the league.

The judge, who will hear the matter again on Wednesday, had asked the PCB to submit a detailed reply to the petition filed by the franchise owners.

"Outside channels are being used to convince the franchise owners to withdraw their petition and assurances have also been given to them that the board is willing to sit down with them and address their grievances," the source added.

https://www.outlookindia.com/newssc...petition-over-leagues-financial-model/1945124

 

[MenInG]

LAHORE: The Pakistan Cricket Board (PCB) has called the much-awaited meeting with the franchises of the Pakistan Super League (PSL) on Oct. 7 after the Lahore High Court disposed off the case, filed by the franchises against the PCB for not meeting their demand of introducing new financial model of the league.

LHC Justice Sajid Mehmood Sethi disposed off the case after the PCB called the franchises for a meeting on Oct. 7 to solve all the disputes that had emerged between the two parties. The PCB has also assured that no adverse action would be taken against the franchises till Oct. 9.

Later, PCB Chief Operating Officer Salman Naseer confirmed in a video message that the PCB had called a meeting with the franchises and added the franchises had assured the PCB that they would clear all their dues of 2019-20 edition of the PSL as soon as possible.

Salman said that it was unfortunate that the affairs of the PSL went to the court of law, instead of being solved between the two parties amicably.

He said the PCB had made the offer for the said meeting to the franchises before and even after the legal case.

Salman admitted that due to the legal case, the reputation of the PSL and the PCB was damaged globally.

It may be mentioned here that while the accounts of the last edition of the PSL are yet to be announced, the PCB has set Sept. 25 as the last date for the franchises to submit their bank guarantees for the next edition. But all the six franchises are rather interested in first finalising a new financial model as according to them, under the previous one, they were in losses while the PCB was earning the profits.

According to the franchises, the meeting has been delayed for the last many months for one or another reason.

However, Dawn has learnt that the PCB does not believe the franchises are suffering any losses due to any negligence on the part of the PCB. The PCB is also of the opinion that the franchises’ losses may well have to do with the lack of efforts on their part in minting money by utilising opportunities available to them.

https://www.dawn.com/news/1582704

 

[JattMaula]

Some phone calls happened.

 

[MenInG]

PCB statement on meeting with PSL franchises

Lahore, 7 October 2020:

A positive and constructive meeting was held today between the Pakistan Cricket Board and all the HBL PSL Franchise Teams. Participants engaged in good faith discussions with a view to resolving outstanding matters, disputes and grievances.

Both sides held healthy candid discussions airing concerns and their respective viewpoints on outstanding matters. PCB presented to the team owners a draft proposal which has been put together at the behest of the franchises who requested that the PCB explore a more equitable model. Both sides agreed to delve deeper into the proposed model with their respective financial and operational teams over the coming weeks and aim to resolve outstanding concerns and find a mutually beneficial position as soon as possible.

 

[Thunderbolt14]

Zalmi has begun selling body spray and fragrances

 

[shamaan]

Zalmi has begun selling body spray and fragrances

All other franchise should follow suit and do other things to make money and gain reputation

 

[MenInG]

Lahore, 29 October 2020:

The Pakistan Cricket Board and franchisees continue to progress on the matters positively.

An open, honest and amicable discussion took place; a presentation was made to the franchise owners by the PCB around the future business models. The franchisees will now digest and discuss the options presented and revert.

All parties are working towards a quick resolution. In the meantime, plans for the upcoming HBL PSL competitions remain in full swing.

 

[MenInG]

LAHORE: The Pakistan Cricket Board (PCB), it seems, is hushing up the affairs of HBL Pakistan Super League, as it continues to avoid responding to media queries over the affairs of the League, the country’s flagship Twenty20 event.

Second time in a month’s time, neither the PCB media department nor the marketing department was ready to answer the queries of the media as the affairs between the PCB and the six franchises continue to become increasingly ‘fishy’ day by day, threatening to spoil the image of PSL.

Last time, a meeting of the six franchises with PCB officials was held after which a brief press release was issued on the subject. When Dawn contacted PCB director media head Samiul Hasan, he said that as he did not attend that meeting the media should directly put the queries to PCB marketing head Shoaib Naveed.

On Thursday, another meeting between the owners of PSL franchises and the PCB was held in Lahore -- and was yet again followed by a few-worded press release giving no appropriate details on the subject.

The press release issued by the PCB on Thursday’s meeting read: “The PCB and franchisees continue to progress on the matters positively.

Interestingly, again Sami instead of responding to different queries of media retained his previous stance.

Regrettably, it appears that the PCB media department, which has been following the practice of providing long stories even on minor achievements of the Board to the media, is not willing to perform on professional lines when it comes to sharing the affairs of PSL franchises.

While Sami has totally ignored his professional duty of providing the right and timely information to the media, Shoaib is also not interested in taking questions raised by the media -- a scenario which speaks volumes of the professionalism level of a corporate body like the PCB.

The press release on Thursday did not even mention whether PCB chairman Ehsan Mani or chief executive Wasim Khan presided over the meeting.

It is however learnt that the meeting was held online via Zoom and both Ehsan and Wasim attended it.

“An open, honest and amicable discussion took place; a presentation was made to the franchise owners by the PCB around the future business models. The franchisees will now digest and discuss the options presented and revert.

“All parties are working towards a quick resolution. In the meantime, plans for the upcoming HBL PSL competitions remain in full swing,” the press release concluded.

It may be mentioned here that the press release was issued while the franchises and the PCB have been at loggerheads over the fresh financial model of PSL during the last three years.

The franchises claim that they are facing losses while the PCB is in profit. This unwanted scenario between the Board and the franchises, one fears, could also damage the otherwise good image of PSL in world cricket, which the league has earned since its inception in 2016.

Needless to say, this bizarre attitude of the PCB media department at a time when the Board is going to hold four remaining matches of PSL 5 after just 16 days, may well go against the interest of the league.

Published in Dawn, October 30th, 2020

 

[MenInG]

LAHORE: All the franchises of the HBL Pakistan Super League (PSL) did not deposit the bank guarantee money for the next edition of the league, to be held in 2021, as the last date of Nov 10 expired on Tuesday.

It is the second time that the franchises did not deposit the guarantee money as earlier they had missed the last deadline for the same in September after expressing their reservations over the old financial model. Later, they moved the Lahore High Court on the contentious issue. The LHC then referred back the case to the PCB to sort out the matter after having a meeting with the franchises owners and warned that no action against the franchises be taken for missing the deadline of depositing the guarantee money.

The owner of the franchises, who were expecting a meeting with the PCB Chief Financial Officer (CFO) of the PCB on Tuesday to get a briefing over the new financial model, will apparently have to wait a few days more for the meeting now since the PCB has been busy in its back-to-back meetings of the Board of Governors in Lahore on Monday and Tuesday.

However, when contacted, the PCB media department said no such meeting was held and when asked if the PCB would take any action against the franchises for not depositing the guarantee money, the PCB’s reply was that no decision has been made in this regard as yet.

It may be mentioned here that the franchises’ owners had lodged strong complaints that while they were suffering huge losses in the PSL, the PCB was making profit. A new financial model was presented to the franchises and a meeting to discuss the same was scheduled for Tuesday but it has been delayed.

There are reports that the PCB is even ready to resale the franchises if the new financial model is not be accepted by the owners. The PCB expects higher prices for each franchise as now the PSL has become a successful brand of the country. There are also reports that the franchises may again move higher courts in case the PCB fails to accept their demands.

Published in Dawn, November 11th, 2020

 

[Savak]

So the PCB has surrendered 90% percent of their share of the broadcast, title sponsorship pool, they are making Covid relief payments to the franchises for PSL 5 and PSL 6 and have also agreed to offer them a fixed exchange rate for the USD.

What more do these franchises want? Didn't the FBR give them tax exemptions as well? Maybe these Franchise owners are not very competent when it comes to running a sports team. You can't hope to establish your team as a brand when you shut up shop for ten months in the year. Some sources have alleged that the reasons why some of the psl franchises were not going all out to develop their franchise brands is under the fear that when the ten year period expires the PCB will demand them to higher franchise fees based on the fmv of their respective franchises which means the fee they will pay to the PCB will be much higher

 

[Major]

Javed Afridi cannot be party to this. He has managed to milk the Zalmi brand like no tomorrow. He is a brilliant businessman - no franchise owner has been able to do what he has managed.

4 years on, the Qalandars, Kings and Gladiators are still limited to cricket while Javed Afridi is selling perfumes and eastern formal wear under the Zalmi brand.

True. He has associated zalmi with high value brands and has done great job.

People here thibk that psl is about cricket when is mostly about branding and marketing

 

[UzmanBeast]

So the PCB has surrendered 90% percent of their share of the broadcast, title sponsorship pool, they are making Covid relief payments to the franchises for PSL 5 and PSL 6 and have also agreed to offer them a fixed exchange rate for the USD.

What more do these franchises want? Didn't the FBR give them tax exemptions as well? Maybe these Franchise owners are not very competent when it comes to running a sports team. You can't hope to establish your team as a brand when you shut up shop for ten months in the year. Some sources have alleged that the reasons why some of the psl franchises were not going all out to develop their franchise brands is under the fear that when the ten year period expires the PCB will demand them to higher franchise fees based on the fmv of their respective franchises which means the fee they will pay to the PCB will be much higher

This is why franchises should go on an auction; capable businessmen and competent owners need to become a part of our cricketing setup.

These wannabe owners who have no common sense should be removed from our cricketing setup.

Especially if their egos are larger than the results they actually provide.

PSL 8, in my mind, should be a very large structural reform to ignite a new period of growth into this tournament:

1.) The auction for players is a good idea for getting international players here.

2.) Teams should also try and gather at different times of the year to conduct exhibition matches for charities and other non-profit organizations if the international schedule isn't too tight.

3.) I also think that the PCB needs to get hold of some very credible title sponsors; let's be honest, HBL has done a good enough job of laying the foundation, but we need a giant investor to move this league to new heights.

4.) PCB should ask franchises to create talent-spotting U-18 trials in their respective regions; these players cannot already be a part of the domestic system, and the sole purpose is to carry around 2-3 very young, talented players in an international-style setup to improve their development. It will also help reduce the regional disputes in cricket; these teams are responsible to identify 3 of these players and report to the PCB at the conclusion of the trials.

5.) The reason I think we need to put the franchises on auction is that a current lot of franchise owners have become complacent. They have egos that are unreasonably obnoxious and need to be put in their places.