Sketching a new financial model for the franchises, Pakistan Cricket Board (PCB) and Pakistan Super League (PSL) clubbed together with new terms to end a long-running stand-off.
The meeting was attended by both parties in Lahore in which PSL accepted the offer made by PCB.
In the new agreement, all 6 franchises will get covid-19 relief for seasons 5 and 6, an upward revision of Central Pool of Revenue (CPR), and fixing dollar-Pakistan rupee exchange rate for all future payments.
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Previously, the longstanding matters between the PCB and the franchises were causing distraction and affecting the reputation of the brand.
“I am delighted that all matters have finally been resolved, which is a big step forward in building a stronger relationship with the franchise owners”, PCB Chairman Ramiz Raja said.
In the new model, all franchises will get 95% of revenue generated from all revenue streams including broadcasting rights, sponsorship rights, and gate receipts from the seventh edition onward.
PSL franchises accept PCB offer
More details ⤵️ https://t.co/2gGRZJxHC3
— Pakistan Cricket (@TheRealPCB) October 11, 2021
For PSL 5 and 6, PCB will share 98% of the central pool revenue as an additional relief given the covid-19 outbreak that disrupted both seasons.
Moreover, the franchises wanted PCB to give them rights in perpetuity but that is not part of the new model.
As per the original contract, franchises will have to pay an increased franchise fee [existing fee + 25% or 25% of market value of the franchise, whichever is higher].
Back in 2015, when the first 5 franchises came on board, the rate was Rs 105 to a dollar but currently, the rate of a US dollar hovers above PKR 170.
The agreed offer means the PCB will peg the US dollar to the day the new agreement is signed and international players will continue to be paid in USD.