PSL valuation surges as two new franchises added for record prices
FKS Group and OZ Developers acquire two new PSL franchises for collective Rs3.6 billion annual fees
KARACHI: The valuation of the Pakistan Super League (PSL) experienced a massive surge with the addition of two new franchises that were sold for a collective Rs3.6 billion at the star-studded auction, held here at the Jinnah Convention Centre on Thursday.
The two new PSL franchises were acquired by FKS Group and OZ Developers for a whopping Rs1.75 billion and Rs1.85 billion, respectively.
The combined annual fees of the newly-added franchises are Rs3.6 billion, which is 34 per cent more than that of the combined value of the first five teams – Lahore Qalandars, Karachi Kings, Islamabad United, Peshawar Zalmi and Quetta Gladiators, currently Rs2.64 billion.
According to the details, the United have the highest annual fee, Rs780 million, among the first five franchises, closely followed by the Qalandars, who pay Rs670 million annually, while the annual fees of the Kings, Zalmi and Gladiators are Rs640 million, Rs490 million and Rs380 million, respectively.
Meanwhile, Multan Sultans, whose owner decided against renewing the ownership contract following the 10th edition of the marquee league, last paid an annual fee of Rs1.08 billion.
As the annual fee was supposed to be increased further by 25 per cent after the valuation process, the owners of the franchises decided against renewing the contract, citing financial losses.
"Despite the financial losses year after year, I never once thought about walking away. The Sultans have always meant more to me than just numbers," Sultans' owner Ali Tareen had said in a statement on social media.
The Pakistan Cricket Board (PCB), as a result, announced to take control of the franchise for the historic PSL 11 before auctioning it next year.
PCB Chairman Mohsin Naqvi made the announcement during a media conference last month.
"Multan Sultans will be operated by the PCB this year. Once the PSL concludes, we will carry out the auction process and put the franchise up for sale. However, for this season, the board will run the Sultans," Naqvi said.
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