Shift to PKR payments and revised franchise valuations
In a significant shift to its financial operations, the Pakistan Cricket Board (PCB) has decided to conduct all monetary transactions with Pakistan Super League (PSL) franchises in Pakistani rupees (PKR) instead of US dollars, according to a report by PTI. The move signals a break from the league’s original dollar-denominated model and could have long-term implications for both the board and its franchise partners.
Of the existing franchises, Lahore Qalandars, Quetta Gladiators, Peshawar Zalmi, Karachi Kings, and Islamabad United have already renewed their contracts for the next 10 years under the revised structure, while Multan Sultans are yet to renew their contract for the next 10 years as Ali Khan Tareen has decided not to continue his ownership of the franchise. The PCB also plans to expand the league by adding two new franchises, with their identities expected to be revealed on January 6.
Back in 2016, when PSL was launched, franchise rights were sold in US dollars. At the time, the dollar-to-rupee exchange rate stood at around 105, allowing Lahore Qalandars to secure a 10-year deal for US$ 25 million — roughly PKR 2.65 crore annually. However, with the dollar rate rising to 175 by 2019, the same fee ballooned to PKR 43.75 crore (approx. US$ 1.55 million), prompting franchises to complain about mounting financial losses.
In response, the PCB had then adjusted its model by capping the dollar rate at 175 and increasing the franchises’ share in the central revenue pool to 95%. Still, as the dollar surged to 282 in recent years, financial pressures persisted, setting the stage for this currency switch.
The current shift to rupee-based transactions could stabilize costs for franchises — or not, depending on how valuations evolve under the new system.
What remains unclear is whether this shift will ultimately benefit the franchises or the PCB. The opacity surrounding the brand value of the PSL and its teams continues to invite scrutiny. Financial analysts and stakeholders alike are watching closely to see if this pivot to PKR transactions resolves the financial strain franchises have faced — or merely recalibrates it.
Meanwhile, the PSL also faces ongoing structural challenges. Chief among them is the lack of foreign investors and sponsors, an issue that has hindered the league’s ability to globalize its appeal.
As the PSL approaches a new phase with franchise renewals, possible expansion, and a new exchange rate approach, stakeholders hope this can stabilise the league’s financials and serve as a foundation for future sustainability.
