PSL Franchises Reject Ramiz Raja's Claims Regarding Staggering PSL 7 Earnings
Published - 27 Jun 2022, 06:35 PM | Updated - 23 Aug 2024, 12:09 AM
The Pakistan Super League (PSL) franchises are looking for their money after being shocked by PCB Chairman Ramiz Raja’s claim that each side has earned whopping PKR 810 million in profit.
Franchises have deemed the claim false, claiming that the PKR 400-500 million expenditure was not even deducted.
Just before the competition’s end, Ramiz Raja reportedly claimed that each franchise would receive revenue of PKR 900 million from PSL 7. However, he stated that each franchise had achieved a profit of PKR 810 million during the media briefing on Friday in Lahore.
When Rameez disclosed the teams’ portion of the PSL Central Pool, he overlooked the fact that profit comes after expenses are deducted.
Besides, 95 per cent of the PSL’s TV production expenses must be covered by the clubs. Each club will be required to spend at least PKR 130 million in this regard, according to a conservative estimate.
An organizer charged PKR 65 million for hotel accommodations, PKR 10 million for transport, PKR 150 million for daily living expenditures (LED screens on the ground, etc.) PKR 14 million, PKR 170 million in player payments, and PKR 20 million in coach fees. Depending on each side, this may be more or less.
After deductions, the minimum is 42 million Pakistani rupees. Therefore, expenses will equal half of the chairman’s declared revenue. If the fees are eliminated, many franchises will suffer losses.
‘Board has not paid franchises 50 % of the central pool of revenue: Ramiz Raja
The reduction in payments will help groups like Quetta Gladiators and Islamabad United. If you include your sponsorship revenue, some franchisees will turn a profit. However, teams like Multan Sultans will once again incur significant losses because their payments alone exceed PKR 1 billion.
On the other hand, the board has not paid franchises 50% of the central revenue pool. Franchises were supposed to get 50% of the total by May 5, but this did not happen because some stakeholders did not pay; nonetheless, the CFO has promised that 90% of the total will be paid in July. According to the deal, the final 10% would be kept back until December.
When approached, PCB Director of Media Sami-ul-Hasan Burney stated that it is a good thing that franchisees earned financial benefit for the first time in PSL history. Within the first 15 days of next month, they will receive their entire payment.
In the meantime, the board also transferred the costs of the legal action against the franchisees. Owners are dissatisfied since former chairman Ehsan Mani frequently stated that PCB would pay the sum.
