When the HBL Pakistan Super League (PSL) launched in 2015, expectations were low due to Pakistan’s cricket exile after the 2009 attack on Sri Lanka’s team. Despite political instability and strong competition from leagues like the IPL, the PSL flourished, becoming a major talent pipeline, restoring Pakistan’s cricketing reputation, and serving as the Pakistan Cricket Board’s (PCB) primary revenue source for years.
Initially played in the UAE, the PSL eventually moved home, reviving cricket in Pakistan. It became the PCB’s financial lifeline, often contributing up to 50% of its annual revenue, even as political and security challenges persisted.
However, the franchise owners, who believed in the PSL early on, have mostly run losses. Out of six teams, four have remained unprofitable. Meanwhile, the PCB benefited heavily, growing its cash reserves from Rs 9 billion in 2018 to over Rs 20 billion by 2023, thanks largely to PSL revenues.
READ MORE: Tareen blasts PSL: Calls PSL model unfair
Why should Multan Sultans cost three times more than Karachi Kings?
Franchise owners faced worsening conditions as the Pakistani rupee devalued, increasing their dollar-based fee obligations dramatically between 2015 and 2021. This forced renegotiations: the PCB lowered its share of the central revenue pool and fixed the exchange rate to offer some relief to the franchises.
Recently, the PSL’s financial dominance has declined, overtaken by international tours and ICC/ACC payments. In 2023, PSL revenues stood at Rs 3.55 billion, while international cricket brought Rs 5.43 billion. Although the PSL remains a vital financial engine, it no longer stands alone atop the PCB’s earnings.
The PCB owes a debt of gratitude to franchise owners who took the initial risks. As the board enjoys new revenue streams from international cricket, there is growing pressure to restructure the PSL’s financial model to ensure teams are sustainable partners, not just sources of income.
Highlights with Key Financial Figures
Initial Franchise Fees (2015):
Highest: Karachi Kings ($2.6 million/year)
Lowest: Quetta Gladiators ($1.1 million/year)
Total yearly franchise fee (first five teams): $8.3 million.
Addition of Multan Sultans (2017):
Franchise fee: $6.35 million/year.
Revenue Highlights:
2018: PCB revenue Rs 5.13 billion; PSL contributed Rs 2.2 billion (43%).
2019: PCB revenue Rs 11.3 billion; PSL revenue Rs 3.31 billion.
2020: PCB revenue Rs 9.34 billion; PSL contributed Rs 3.62 billion (38%).
2021: PCB revenue Rs 7.9 billion; posted Rs 756 million loss.
2022: PCB revenue Rs 9.03 billion; PSL contributed Rs 3.34 billion (38%).
2023: PCB revenue Rs 12.45 billion; PSL contributed Rs 3.55 billion.
Profit Highlights:
2023 Profit: Nearly Rs 4 billion — second-largest annual profit ever for PCB.
Cash Reserves Growth:
2018: Rs 9 billion
2019: Rs 13 billion
2020: Rs 17 billion
2023: Over Rs 20 billion
International Revenue Surge (2023):
ICC/ACC payments: Rs 5.43 billion
Asia Cup, bilateral series contributed Rs 5.5 billion (surpassing PSL revenue for the first time).
Key Structural Changes:
PCB reduced its share of the central revenue pool from 20 %+ to 5%.
Franchise fee payments fixed at Rs 175/USD to counter rupee devaluation.
