KARACHI: The seventh edition of HBL Pakistan Super League (PSL) tournament is expected to create huge income opportunities for franchises, enrich the country’s global perception and address international security concerns, said officials and business leaders on Thursday.
According to the Pakistan Cricket Board (PCB), HBL PSL has 80 million viewers who have turned the Twenty20 cricket series into a major success. The tournament also draws significant corporate sponsorships from multinational firms and has led to a steady increase in the income of franchises.
Six teams are participating in the month-long event which kicked off at the National Stadium Karachi on Thursday.
“There is a substantial increase in the purchase of commercial rights of the event,” Sami Ul Hasan Burney, director media and communication at the PCB, told Arab News.
“The financial model is that 95 percent of the total revenue is distributed among franchisees and only five percent comes to the PCB after all expenses,” he added while providing details of the new business arrangement that was adopted with consensus by all stakeholders in October 2021.
Under the agreed model, PSL franchises will also be entitled to an additional 98 percent share of the profit from the central revenue pool as COVID-19 relief for PSL-5 and PSL-6.
Previously, they were getting about 85 to 90 percent of the revenue.
The major sources of revenue generation for the event are advertainments, airing rights auction, and title sponsorship.
“The revenue is collected by the PCB,” Burney said. “Media rights, title sponsorship, ground signage are the major revenue sources. This is all negotiated and finalized by the PCB and done in the presence of the representatives of the franchisees.”
The PCB has auctioned the PSL TV Broadcast media rights for 2022-2023 for over Rs4.35 billion – or approximately $24.6 million – which were awarded to a consortium comprising ARY and state-owned Pakistan Television (PTV).
Title sponsorship is another revenue generation source which is retained by the country’s largest bank, Habib Bank Limited (HBL), until 2025.
“HBL not only exceeded the reserve price in reacquiring the rights but sealed it with a 55 percent jump from last cycle, which speaks volumes of their belief in the PSL brand,” said a recent statement issued by the PCB.
Though the official amount of the title sponsorship is not disclosed, media reports claim it stands at $22.2 million, up from $14.5 million that were signed for 2019-2021 events.
HBL officials say their priority is to promote sports in the country instead of pursuing their commercial interests.
“The development of youth in Pakistan is a generational benefit HBL seeks from the tournament,” Ali Habib, the bank’s chief marketing and communications officer, told Arab News.
Pakistani business leaders said the event was more of a perception building process to create the country’s positive image at the world stage.
“The event signals that business and security environment of the country is normal, not only for us but also for international trade requiring the participation of foreign players,” Mian Nasser Hyatt Maggo, president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), told Arab News.
“Foreign importers will be more comfortable to visit Pakistan and play greater role in our export promotion due to improving perception of the country,” the FPCCI chief said, adding: “The T20 series also helps local companies grow their businesses and strengthens domestic advertising business.”
Sports analysts said the event mobilizes billion of rupees through commercial activities, adding it was also indispensable for the country’s international image and advancing its domestic economic interests.
“The commercial value of the event is in billions of rupees which also explains why the tournament has become so popular,” senior sports analyst Qamar Ahmed commented. “The major chunk of the revenue has already been collected through sales of title sponsorship and media rights.”
According to the PCB annual report, the organization earned a profit of Rs3.8 billion in fiscal year ending in June 2020 from various sources including tours and tournaments. The total income of the board was Rs9.3 billion while it incurred Rs5 billion in various expenditures.