Major changes proposed in PSL valuation model

As the Pakistan Super League (PSL) enters its next valuation phase, significant new proposals have emerged regarding the league’s financial model and franchise structure, 24NewsHD TV reported on Saturday. 

According to sources, preparations are underway for a new 10-year franchise agreement of the Pakistan Super League (PSL) following the expiry of the initial decade-long contracts. 

A key meeting chaired by PSL Chief Executive Officer Salman Naseer was held at the Pakistan Cricket Board (PCB) headquarters, Lahore, today, where discussions centered on the league’s future financial and ownership structure.

During the meeting, the chartered accounting firm EY MENA presented its official valuation report for the PSL.

The sources revealed, the new franchise contracts will be based on the revised market valuation of the teams, as determined by EY MENA.

The same firm will finalize the updated market value assessments of all franchises within the next few days.

Once the valuation process is complete, the draft of the new 10-year franchise agreement will be prepared.

Importantly, only eligible existing franchises will be allowed to participate in the new bidding process.

The PCB is also considering a shift from US dollar-based transactions to Pakistani rupees for all financial exchanges related to the PSL.

This change, if approved, will also apply to the ownership rights of new franchises, which will be sold in Pakistani currency rather than dollars.

The PCB plans to finalize and share the draft of contract renewals within a week with all existing franchises.

Those unwilling to accept the new renewal terms will have their teams offered through open bidding, sources added.

The contracts of all six existing PSL franchises are set to expire in December, paving the way for potential restructuring of the league.

Moreover, the PCB is reportedly considering expanding the number of teams from six to eight, which would mark a major development since the tournament’s inception.

When the PSL was launched in 2015, the franchises were sold for the following prices:

Karachi Kings for $2.6 million, Lahore Qalandars for $2.5 million, Peshawar Zalmi for $1.6 million, Islamabad United for $1.5 million, and
Quetta Gladiators for $1.1 million.
Later in 2017, Multan Sultans entered the league at a record price of $6.35 million per year.