The Pakistan Cricket Board (PCB) has asked the PSL franchises to clear their annual dues by December 3 next month, failing which the board reserves the right to encash the respective franchises’ bank guarantees.
The development comes amid an ongoing row between the PCB and the five PSL franchises – the Sixth team (formerly Multan Sultans) currently regulated by the PCB – over the revenue share model.
According to ESPNcricinfo, PCB’s chief finance officer Badar Manzoor has asked in an email that the teams pay up in time or the board will go for the alternative option.
The announcement is expected to anger the five franchises who had unanimously demanded a review of the current financial model of the league in a recent meeting with the PCB. Following the meeting, a three-member committee was formed to revisit the revenue share agreement on which the PSL was founded, with tax breaks from the government being one of the top demands.
One of the primary issues is the franchise fee they pay every year, mainly because those payments are required to be made in US dollars. The value of the rupee at around PKR 105 per dollar in 2015 at the time of the signing of deals, has gone to PKR 134 now. The franchises want to peg the rate to 2015 standards or pay in Pakistani rupees at the same rate when the contracts were signed.
The current financial model adopted by the PCB in 2016 offers equal shares from a central revenue pool to all franchises, despite the difference in franchise fees.
PCB’s title rights deal with the HBL ended after three years, and was renewed at USD 14.3 million – almost three times the previous deal. The board is currently in the process of selling the broadcast and digital rights, which is also expected to bring in better deals.