The Pakistan Super League season 9 (PSL 9) has set a new record by generating a revenue of 7 billion PKR (approximately US$ 25.11 million). When we compare this to the inaugural season, which generated just US$ 2.6 million, it’s clear that the PSL brand has grown its revenue by almost ten times. This growth is especially remarkable considering there was a significant drop in ticket sales this season. Reports indicate a 17% decrease in ticket sales, largely due to low attendance at the matches in Karachi. In fact, many of the PSL matches in Karachi were played in nearly empty stadiums.
This season, Karachi was scheduled to host 11 matches, including the playoffs and the final. However, the crowd in Karachi only filled the stadium for two to three games. Even the playoff games and the final, which were held in Karachi, were less profitable than expected. Before the season started, there was a proposal from the franchises to begin the tournament in Karachi and then move to Lahore. Unfortunately, the Pakistan Cricket Board (PCB) rejected this proposal. From this years’ experience, the PCB has learned its lesson and is now considering reducing Karachi’s matches to just five matches next season (PSL 10).
Turning our attention back to the financial details, this year the revenue from the league will be split between the PCB and the franchises at a ratio of 15:85, respectively. This arrangement means that each franchise stands to receive just over 98 crore rupees. However, the PCB will take the remaining amount, which is around 1 billion PKR. Out of the 98 crore rupees, expenses like player salaries, hotel accommodations, and travel expenses could cost 60 and 65 crore rupees to each franchise. After these expenditures, and once the franchise fee is paid, many teams may actually end up in losses. These financial outcomes may vary significantly from one franchise to another.
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Lastly, if we look at the growth in revenue from the previous seasons, there has been a substantial increase. The revenue last season was 5 billion PKR, and this season it has reached 7 billion PKR. This represents a 40% increase in revenues compared to last year. This growth, despite the challenges faced in terms of attendance and profitability for the franchises, highlights the continuing financial success of the league as a whole.
This leads to the question: Is the PSL really a profitable tournament? The answer is mixed. For the franchises, the PSL tends to be a financial loss. However, for the PCB, the PSL is quite profitable. The PCB earns a significant amount through the franchise fees paid by the teams. Despite this income, many franchise owners are unhappy with the financial arrangements and have voiced concerns over several issues, including the process of ticketing.
