PSL enters key phase as overseas company handles valuation and fees
Ernst & Young appointed to evaluate PSL and franchises; report due in October will decide new fees, expansion plans, and the league’s future.
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In a significant stride for Pakistan cricket, E&Y has been appointed by an independent third-party to assess the Pakistan Super League(PSL) and franchises. E&Y (Ernst & Young) is recognized as one of the largest audit firms in the world, and they are set to begin the work in the next few days. E&Y's report will be important since it will help determine new franchise fees and finances associated with the league.
The PSL recently completed its first 10 years, and six existing franchises' current contracts are up for renewal. Based on estimates, a minimum increase of 25 percent from their current franchise fees can be expected. Before starting the process, the PCB had asked for bids from audit firms, and many made initial submissions to the board; however, only one firm, E&Y, made the financial bid. After clearing all obstacles, the PCB and E&Y confirmed their appointment.
The audit firm will be provided a six-week time period starting next month to complete the assignment and report its findings. It will be collecting financial documents from the PCB and the franchises. The teams are not required to disclose their accounts, and anything less than transparency could be costly, since the audit firm will be estimating operating results, and it may not be to the franchises' liking. Technically, each franchise is expected to submit yearly accounts to the PCB, but few actually do.
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PCB awaits valuation report amid delays in PSL operations
That report is expected next month, in October, and when the valuations come in, the PCB will establish revised fees for franchises as well as the two franchises that will likely be added in the next cycle of the tournament.
Concerns still remain regarding the pace of league operations under Salman Naseer. Franchises have repeatedly raised issues with the pace of decision-making in the league and a lack of progress on commercial agreements. Even the official dates for the 11th edition have yet to be released, as we were given an earlier timeline for when that would be!
The 10th season of the PSL took place in its April-May window and saw Lahore Qalandars defeat Quetta Gladiators in the final to win their third title. As this whole situation unfolds, the next point of focus will be what the valuation numbers ultimately look like, which could define the next era of the league.
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