3 old franchises to stay in PSL for another 10 years

The process of renewing franchise ownership in the Pakistan Super League (PSL) has officially begun. So far, three teams - Lahore Qalandars, Peshawar Zalmi and Quetta Gladiators - have finalized their decision to stay in the league for another 10 years. The Pakistan Cricket Board (PCB) confirmed the new contracts with the three teams in a statement on Monday (November 24). The renewal fees have been determined based on the market value assessment by international audit firm Ernst & Young (EY-MENA).

The most valuable franchise is now Lahore Qalandars. In this year's evaluation, Lahore Qalandars has been declared the most valuable team in PSL. The annual value of Qalandars stands at about 980 million rupees (about 3.47 million dollars), which is a new record in the history of PSL.

However, under the new policy, the old franchise owners do not have to pay the full market price. In the case of Lahore, the old fee is 425 million rupees plus 25 percent of the new price. As a result, Samin Rana and Atif Rana will have to pay about 670 million rupees (about $ 2.37 million) per year. If a new owner had been taken, they would have had to pay about 300 million rupees more based on the market price.

After the contract renewal, Lahore Qalandars said in a statement that their long-term presence in the PSL is a reflection of the PCB's recognition of the team's structural capabilities, on-field performance and brand value. PCB Chairman Mohsin Naqvi also praised the Qalandars' leadership, saying, "The Rana family has made Lahore Qalandars a household name in Pakistan and a strong brand at the international level."

Peshawar Zalmi's value has more than tripled. Peshawar Zalmi announced the contract renewal right after Lahore. The team, which started its journey in the league in 2016 with a cost of just Rs 270 million, is now valued at around Rs 870 million (about $3.1 million). The renewal will see owner Javed Afridi pay around Rs 500 million (about $1.8 million) annually.

In a separate statement, Afridi said, "It is not just a matter of pride, it is also a responsibility. We want to give greater value to PSL and Pakistani cricket." Zalmi's matches were the most popular in terms of viewership last season, which has played a major role in increasing their brand value.

Chairman Naqvi said, "Javed Afridi's leadership has played a tremendous role in making the Zalmi brand one of the most successful sports institutions in the country. Their new contract reflects their belief in the future prospects of the league."

Quetta Gladiators have also confirmed their renewal. The PCB has confirmed that Quetta Gladiators have also renewed their contract for another 10 years. Like other teams, their contract has been revalued and the new terms have been finalized. Although the PCB has not yet released the exact figure for their valuation, it is known that the board is finalizing long-term contracts with the old team as part of the league's expansion plan.

However, the complications are intensifying with Multan Sultans. Multan Sultans is the only franchise whose value has decreased in this revaluation. The team, which joined the third season, was previously valued at 1.1 billion rupees ($3.89 million). But in the latest valuation, their value has decreased to 850 million rupees (about 3 million dollars)—the first devaluation in the history of the league.

Even so, according to the policy, the Sultans will have to pay the previous 1.1 billion rupees as franchise fee, plus an additional 25 percent to bring the total fee to will increase. This decision has led to a sharp disagreement between owner Ali Tareen and the PCB. Tareen has publicly criticized the PCB's policy, as a result of which five other teams have been offered renewals but no final offer has been sent to the Sultans. He has also threatened to take legal action as the situation is complicated.

Two new teams are coming to the PSL. The PCB is planning to expand the PSL to eight teams from next year. Bidding for the two new teams will begin early next year. The names of the teams have not been decided yet, but the board believes that most of the old franchises will confirm their renewals, except for the Sultans.