The Pakistan Cricket Board (PCB) is set to expand the Pakistan Super League (PSL) by adding two new franchises. Reports suggest that the board is hoping to sell each new team for PKR 2 to 2.5 billion per year (USD 7 to 10 million).
Changes Expected After PSL 10
Following the conclusion of the 10th edition of PSL, the PCB plans to revise and extend multiple franchise agreements. Currently, PSL operates with six teams as per a 10-year contract, but starting from PSL 11 in 2026, two new franchises will be introduced. Existing teams will also undergo a contract review, and franchise fees are expected to increase.
Teams have the option to continue their contracts or withdraw, but no team has opted out so far. The PCB will conduct a comprehensive evaluation before finalizing new franchise fees. A reputable audit firm will be hired to assist in this process.
Franchise Fees and Dollar Exchange Rate Impact
PCB initially set the US dollar exchange rate at PKR 170 for fee calculations. However, with the current exchange rate reaching PKR 282 per USD, the cost for franchises has significantly increased.
Multan Sultans, the most expensive team, currently pays an annual fee of PKR 1.08 billion (USD 6.3 million).
Other franchise fees:
Karachi Kings: USD 2.6 million
Lahore Qalandars: USD 2.5 million
Peshawar Zalmi: USD 1.6 million
Islamabad United: USD 1.5 million
Quetta Gladiators: USD 1.1 million
Due to financial challenges and operational costs, Multan Sultans’ fee is expected to increase by 25%, reaching approximately PKR 1.5 billion in the next phase.
Expectations for New PSL Franchises
The PCB is confident that the new teams will be sold for USD 7 to 10 million each, translating to PKR 2 to 2.5 billion. Several parties have shown interest in purchasing these franchises, including a major stakeholder in Pakistan cricket and an organization participating in domestic Grade Two cricket.
International Interest in PSL Expansion
PCB Chairman Mohsin Naqvi and PSL CEO Salman Naseer recently held meetings in the USA with potential investors. Reportedly, two American investors have expressed interest in buying a team. Additionally, some UK-based Pakistani businessmen are also eager to join the league. However, the seriousness of these investors will become clearer as the bidding process approaches.
Concerns Over Franchise Profitability
Current PSL franchises share revenue equally from the central pool, regardless of their franchise fee. Existing teams fear that adding two new franchises may reduce their earnings. However, PCB sources claim that increased sponsorship and broadcasting deals will boost the central revenue pool, benefiting all teams.
Some industry experts question the feasibility of new franchises turning a profit. Given Multan Sultans’ financial struggles despite a PKR 1.08 billion fee, concerns arise about how new owners will sustain a PKR 2 to 2.5 billion investment. Analysts suggest PCB should only finalize deals with financially stable parties to avoid past issues, such as Schon Group’s exit from Multan Sultans.
Conclusion: A Major Decision for PSL’s Future
As PSL looks to expand, financial sustainability and investor commitment will be key factors in securing long-term success. The coming months will reveal which bidders step forward and how PCB structures its agreements to ensure a profitable and competitive league.
