After 4 long years, Pakistan Super League (PSL) franchises have started making profits. This is mainly attributed to the Pakistan-leg of the league which saw full-houses in almost all 8 matches.
Having said that, not all franchises will be reaping the rewards as Lahore Qalandars and Multan Sultans are almost certain to record losses yet again after a dismal outing in the recently concluded PSL 4.
On the other hand, Karachi Kings’ profits or losses are yet to be decided. They can earn revenue this year depending on their sponsorship deals.
The central pool of $2.5 million earned from title sponsorship and broadcasting deals as well as gate money will be split between the franchises. The title sponsorship deal was signed for $14.3 million whereas the broadcasting deal went through for $36 million for a period of three years.
According to the deal, the franchises get 80% of the income from the broadcasting rights while the remaining sum goes to PCB. On the other hand, the title sponsorship income is distributed 50-50 between PCB and the franchises.
Quetta Gladiators will earn the highest revenue this year thanks to the award of $500,000 as well as an increased share from the broadcasting and sponsorship deals.
Lahore Qalandars expenses are among the highest especially due to their player development program and high sums in franchise fee, which is why the franchise will incur losses this season as well. Multan Sultans will also incur losses due to a hefty franchise fee.
An Example from 2017
For instance, Quetta Gladiators suffered a loss of Rs 63,518,476 due to expenses despite earning an aggregate sum of Rs 201,764,445. The owners paid $1.1 million as franchise fee while they earned Rs 95,647,001 from sponsorships and Rs 105,617,444 from the central pool.