The Pakistan Cricket Board (PCB) has guaranteed a minimum share of Rs850 million from the central pool of income to each franchise for the next five editions of the Pakistan Super League (PSL), starting from the 11th edition in 2026.

According to clause 6.4 of the agreement — available with Dawn — signed between the PCB and the PSL franchises, if a franchise’s share from the central pool in any of the five editions falls below the guaranteed amount, the PCB will cover the shortfall.

“If the Central Pool Income share of the Franchisee in respect of a Tournament is less than the Minimum Central Pool Income Guarantee (Rs850 million), the PCB shall make good the shortfall,” the clause states.

The provision has largely eased concerns over potential losses for three franchises — Quetta Gladiators, Islamabad United and Peshawar Zalmi — whose franchise fees are significantly lower than those of Karachi Kings, Lahore Qalandars and Multan Sultans.

According to sources, Quetta Gladiators are valued at Rs360 million, Peshawar Zalmi at Rs480 million, Islamabad United at Rs490 million, Karachi Kings at Rs650 million, Lahore Qalandars at Rs670 million and Multan Sultans at Rs1.8 billion.

Meanwhile, the base price for the two new teams — to be auctioned in Islamabad on Jan 8 — has been set at Rs1.3 billion each, according to sources.

All franchises are required to spend $1.4 million each on players’ fees, accommodation and travel during the league. As a result, the overall cost for five franchises — the two new teams along with Multan Sultans, Karachi Kings and Lahore Qalandars — remains high and close to the guaranteed minimum of Rs850 million, compared to Gladiators, United and Zalmi.

This disparity was cited by Multan Sultans owner Ali Tareen when he raised objections to the PSL’s financial model, arguing that his franchise was incurring losses due to its high valuation. Subsequently, the PCB did not renew ownership rights for the Sultans’ previous owner, while the owners of the remaining five franchises were renewed.

Despite the varying costs of franchises, their respective shares from the central pool remain equal. Under the financial model, 95 per cent of the central pool income is distributed among the franchises, with the remaining five per cent retained by the PCB.

According to the clause 6.5 of the agreement, “50pc of the income is to be paid two months after the conclusion of the tournament, 40pc after four months and the remaining 10pc after nine months or upon completion of the PCB’s audit, whichever is earlier”.

In addition, clause 6.6 provides further incentives if the PCB’s annual net media revenue exceeds Rs3 billion. Any excess amount up to Rs50 million will be used to procure elite international players and will be shared between the PCB and franchises in an 80:20 ratio, respectively.