Karachi: Preparations for the renewal of Pakistan Super League (PSL) franchise contracts are in full swing, with the Pakistan Cricket Board (PCB) set to circulate draft agreements to team owners next week.
A key meeting in Lahore, chaired by PCB CEO Salman Naseer, reviewed the league’s updated valuation report prepared by chartered firm EY Mina, represented by Mohsin Iqbal and his team. The report will serve as the basis for the new 10-year franchise contracts, which will be priced at revised market values. Only existing franchises that meet eligibility criteria will be allowed to participate in the new bidding process.
Financial Model Shift
One of the major proposals under consideration is a shift from dollar-based payments to Pakistani rupees. While new ownership rights will be priced in rupees, existing franchises, if they renew will continue to pay at the previously agreed dollar rate of 170.5 until 2030.
The PCB reminded stakeholders of the original franchise fees: Karachi Kings were purchased for $2.6 million, Lahore Qalandars for $2.5 million, Peshawar Zalmi for $1.6 million, Islamabad United for $1.5 million, and Quetta Gladiators for $1.1 million in 2015. Multan Sultans joined later in 2017 with an annual fee of $6.35 million.
Rising Fees and Expansion
According to sources, franchise fees are expected to rise significantly, though the gap between teams will narrow. Some owners may opt for re-bidding rather than accepting the new terms. The contracts of the six current teams expire in December, and the PCB plans to expand the league to eight teams in the next edition. An official advertisement for new franchises is expected in the first week of November, with both domestic and international investors showing interest.
Multan Sultans Dispute
The situation surrounding Multan Sultans has become complicated. Owner Ali Tareen drew criticism after tearing a PCB notice in a video posted on social media, weakening his position in ongoing negotiations. While some political figures are reportedly attempting to mediate, franchise owners have largely adopted a cautious “wait and see” approach.
During the Lahore meeting, EY Mina representatives noted that the Sultans had not fully cooperated with the valuation process, providing only limited documentation in response to requests.
Next Steps
The PCB will finalize and send out the contract renewal drafts next week. Franchises unwilling to accept the revised terms will be required to participate in an open bidding process.