The Pakistan Cricket Board has offered financial assistance to the PSL franchises in the form of compensation for the COVID-19 relief for the fifth and sixth editions. This compensation amounted to Rs. 810 million and Rs. 828 million, respectively.
This assistance comes after the franchises expressed reservations about financial matters last year. The cricket board is hoping that this gesture will help to alleviate some of the financial strains that the pandemic has caused.
Some of the salient terms of the offer, which the six franchises have accepted, include:
- Covid-19 relief for HBL PSL 5 and 6
- Upward revision of Central Pool of Revenue in favour of the franchises for HBL PSL 7–20
- Locking of Dollar rate with prospective effect
It is important to note that last year, the franchises took PCB to court over the financial model, arguing that PCB had been unfair in keeping the majority of the revenue while the franchises bore the burden of the league’s finances.
Ramiz Raja, Chairman of the PCB, welcomed the resolution warmly. He stated that the longstanding issues between the PCB and the franchises had been a distraction and detriment to the reputation of the brand. He expressed his delight that all matters had finally been resolved, calling it a big step forward in building stronger relationships with the franchise owners.
The Pakistan Cricket Board then devised the updated financial model in an attempt to resolve the long-standing disagreement between the cricket board and PSL franchises.
The newly developed model requires that the PSL franchises receive more than 90% of the profit share for upcoming competitions.
The PCB believes that this new model will be more equitable for all parties involved and will help to ensure the long-term success of the PSL.
The owners of the franchises had earlier this year voiced their displeasure over the Pakistan Cricket Board’s decision to hold the Pakistan Junior League (PJL) as well. They claimed they had not been consulted prior to the project’s announcement and felt that the Board had not taken their interests into consideration.