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The notion of six teams for the second edition of Pakistan Super League (PSL) has been smacked down by the franchise owners.
According to sources, despite Sethi's promise of an increase in profit share for next year's edition, the franchise owners declined the proposal.
The franchises aim to open new revenue streams via merchandising and are concerned that the addition of an additional franchise will lessen their receipts.
Chairman PSL, Najam Sethi, had expressed his desire to add an additional franchise for the franchise-based tournament's second edition.
However, except Peshawar Zalmi no other franchise welcomed the idea — ostensibly because of the profit sharing mechanism.
Sethi had earlier stated that the sixth team in PSL would be named after Azad Jammu and Kashmir (AJK).
The contract backs franchises
The contract signed between the Pakistan Cricket Board (PCB) and the franchises hinders the former from adding another franchise until the third edition.
Currently, there are five franchises based on four provincial capitals along with the federal capital in the tournament.
PSL’s first edition, held in February earlier this year, turned out to be a massive success and garnered PCB a profit of $2.47 million. The cricket board distributed 70 per cent of the profit among the five franchises equally.
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On DawnNews
Comments (34) Closed
May 17, 2016 06:31pm
I guess this was inevitable. The PCB needs more teams to gather more interest, have more matches, more TV revenue, more competitive cricket; as currently the first round eliminates 1 team only.
On the other hand you have the original 5 teams that would have paid up for franchise rights, exclusive deals and so on.
So the PCB is stuck, both financially and legally.
But it can't be that difficult to put a price on what adding a 6th team will cost in financial losses to the other 5.
Maybe you pay those losses to the original 5, and see if it makes commercial sense to have the 6th team.
But given that 4 out of 5 teams are against it, I am guessing they are not being adequately compensated here.
PCB is really stuck between a rock and hard place here.
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May 17, 2016 06:36pm
Profit of USD 2.5 Million is only peanuts... Take it to USD 50 Million a year at least...
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May 17, 2016 06:41pm
Franchise owners are absolutely right here. PCB should wait for third season to introduce another side and meanwhile, focus should be to host few matches of PSL at home. Hopefully franchises are looking into merchandise revenue as stated in article. I couldn't purchase Lahore's kit from franchise hence had to buy one from internet.
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May 17, 2016 06:45pm
With over USD 25 Million in revenues, profit of USD 2.5 Million is not adequate... Especially, when next time on there wont be as much revenues from franchises but just from broadcasting and gate tickets... BTW expense of over USD 20 Million is too heavy...
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May 17, 2016 06:51pm
The cricket board distributed 70 per cent of the $2.47 profit among the five franchises equally. So basically they earned $ 0.741 million!!!!??
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May 17, 2016 06:56pm
PSL too in SL or still in UAE ??
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May 17, 2016 07:00pm
No AB, NO Warner, NO Smith and NO Williamson. NO wonder the profits are just peanuts.
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May 17, 2016 07:05pm
Profit of one IPL team alone is more than the combined profit of PSL.
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May 17, 2016 07:11pm
I think adding another team is not a bad idea this will give more opportunities to youngsters.
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May 17, 2016 07:55pm
Bring it to uk
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May 17, 2016 08:32pm
@Ali jee Have you seen the weather in the UK in Feb?
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May 17, 2016 08:48pm
5 teams with 4 in the knockouts/playoffs. Wonderful!
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May 17, 2016 09:01pm
Just 5 teams and knockouts with 4 of them.
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May 17, 2016 09:02pm
4 out of 5 play in playoffs. Its like odd one out.
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May 17, 2016 09:03pm
Judging by the profits you know why top players like AB, Smith were missing.
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May 17, 2016 09:47pm
Never successful in 1st attempt, be it PSL or 6th team.
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May 17, 2016 09:52pm
Amazing that PCB made a profit in the very first year; those calling it peanuts don't know that simply breaking even in the first year is a success. Consider the odds the PSL faced: out of home country, poorly populated stadia, an overlapping masters league with MUCH more publicity funds, and many top players choosing to stay out just to see how it goes.
Yet the PSL made a profit of $2.5 Million in the very first year. Hats off to team PSL.
Desperately waiting for the Kashmir Franchise, and knowing how popular cricket and PSL have been in the Kashmir (both the Azad Kashmir and the Indian Occupied part), a kashmir franchise will be a massive hit.
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May 17, 2016 10:34pm
As an india i say ... Pls add AJK team, this is fantastic idea fro PCB and pakistan in general to make more money. There will be lot of contribution comgin from abroad and also from actors
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May 17, 2016 10:35pm
2.5 million dollars profit ? That's like 15-16 cr INR. Are you sure ???
Yuvraj alone takes 14 cr INR per year in IPL. !
PSL money trail doesn't sound very encouraging.
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May 17, 2016 10:52pm
PCB is really a dumb body. They just try to ape BCCI, while there is no comparison between the financial might of Indian companies and the relatively smaller Pakistani sponsors. First of all, if they had just five teams to start with ( which is ok to be fair), they should have thought of a totally different format. One knock out and four semi finalists just sounds very hollow. Aren't there any original brains in Pakistan ?
Second, its been obvious for at least three years that the UAE is a total failure as a host location for PCB as far as finances go. Expenses are out of the roof and receipts puny. Again out of the box thinking was required. How about Kathmandu next time, for example ? People are crazy for international cricket there, its dirt cheap, safe, really close to home and the city as it is a huge magnet for foreigners. Plus Bhawna will be over the moon to host the PSL !
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May 17, 2016 10:58pm
Why dont psl is being played in pakistan? This can generate more revenue.
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May 17, 2016 11:03pm
Also, another suggestion that has cropped up in recent discussions is to make the leagues multisport, especially individual sports. Not all sports have to go simultaneously, and the competitions can go on through the year. While this may sound ridiculous on the outset, its actually a masterstroke. Individual sports dont take as much money to host as cricket, your players can rub shoulders with international sports stars and PCB can gain massive goodwill promoting other sports on the side. BCCI is already considering this proposal to amalgamate Bhupathi's IPTL into IPL. Badminton and hockey leagues are keen to join too. Track and Field and Aquatics are next. The are endless possibilities once the PSL brand gets established.
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May 17, 2016 11:37pm
Have good relations with economy ,Cricket and hocky will flourish. Amen
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May 18, 2016 08:16am
If PSL with a profit of $2.47 million is a "massive success", what should we call call IPL that in 2015 alone "contributed ₹11.5 billion (US$182 million) to the GDP of the Indian economy".
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May 18, 2016 08:23am
This was the first edition of PSL, most leagues will not achieve even break even. PSL was able to earn something which is a great success for a newborn league.
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May 18, 2016 09:23am
I think we must have the Kashmiri team, no matter what it takes.
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May 18, 2016 12:21pm
@REALISTIC tell that to yourself, IPL was a huge success in the first edition both in terms of viewership and profit.
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May 18, 2016 12:22pm
@a even the playoff format is that of IPL.
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May 18, 2016 12:24pm
@Atif and where is the money coming from, China?
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May 18, 2016 12:29pm
$2.6 million to be shared by 5 owners and they don't want 6th team to make their profit 1/6 from 1/5. Wait Kashmir, you have been put on hold.
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May 18, 2016 12:47pm
@REALISTIC most leagues don't open with just 5 teams also.
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May 18, 2016 01:04pm
The so called profit is not even good enough for a start up, its just peanuts.
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May 18, 2016 01:48pm
@REALISTIC poor league.
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May 18, 2016 02:10pm
@khan what actors?
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