PCB is facing loss from PSL due to bigger stake in central pool for franchises

An audit report by the Office of the Auditor General of Pakistan has revealed that the Pakistan Cricket Board (PCB) is losing crores of rupees of revenue from the Pakistan Super League (PSL) due to the financial partnership model and other anomalies among the six franchises. Details of the audit report that appeared in the Pakistani media indicate that the PCB tried its best to create the impression that all is well with the PSL as a financial brand. The Auditor General’s report has expressed concern over the financial model and matters related to PSL and also recommended a thorough investigation into these matters. The audit report states that contrary to popular belief, the board is incurring losses from the PSL after tampering with the financial model of the league.

This loss is due to changes in the profit sharing arrangement linked to the central pool of revenue of PSL. It is worth noting that under the 10-year agreement between the PCB and the franchises, any amendment can be made only after the completion of 10 years in 2025. The Auditor General’s report said the PCB suffered losses from the fifth edition of the league where the franchise’s share in media rights increased to 80 per cent, leaving the board’s share at only 20 per cent. Similarly, sponsorship rights were divided in which 40 percent was given to the franchise and 60 percent was given to the board.

Even in ticket sales, 90 percent of the share was given to the franchises and only 10 percent went to the PCB. According to the report, this resulted in a loss of Rs 81 crore to the PCB. This financial loss increased to Rs 82 crore 70 lakh in the sixth tournament of PSL. Similarly, if profit sharing is in favor of the franchises, the audit report has estimated a possible loss of Rs 1,75 crore 10 lakh for the board from the seventh to 12th tournament.

Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.