Home / Sports / PSL Shifts to PKR: Franchise Fees in Flux?
PSL Shifts to PKR: Franchise Fees in Flux?
25 Nov
Summary
- PSL transactions now in Pakistani Rupees, ending dollar dealings.
- Three franchises renewed 10-year deals, with fee increases questioned.
- Real value of PSL and franchise brands remains unclear.
The Pakistan Cricket Board (PCB) has transitioned its financial dealings with Pakistan Super League (PSL) franchises from US dollars to Pakistani Rupees. This strategic shift has ignited discussions regarding potential benefits for both the PCB and the franchises, especially given the opaque brand value of the league. Three of the six existing franchises—Lahore Qalandars, Quetta Gladiators, and Peshawar Zalmi—have already secured 10-year contract renewals without issue.
This move has prompted scrutiny within cricket circles regarding the actual financial gains for franchises from these renewed deals, given the move to PKR transactions. Initial assessments suggest potential fee increases ranging from 45% to 90%. The PCB also plans to introduce two new teams by January 6. This change contrasts with the league's inception in 2016 when all transactions were dollar-based, leading to financial strain for franchises as the dollar's value against the rupee surged significantly over the years.
The fluctuating dollar rates, which saw the dollar rise from PKR 105 in 2016 to PKR 175 by 2019, caused franchises considerable losses. In response, the PCB previously increased revenue share to 95% and capped the dollar rate at PKR 175. However, with the current dollar rate exceeding PKR 281, the shift to PKR transactions raises further questions about whether franchises will ultimately pay more or less compared to the initial decade.
