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The Pakistan Auditor General‘s office, in its audit report, has revealed substantial revenue losses for the Pakistan Cricket Board (PCB) in the millions of rupees due to the financial sharing model with the six franchises and various irregularities within the Pakistan Super League (PSL).
Media reports highlight that the PCB went to great lengths to project a positive financial image of the PSL as a brand, contrary to the concerns raised by the Auditor General’s report.The report suggests a need for a comprehensive investigation into the financial model and related matters of the PSL.
Contrary to public perception, the audit report indicates that the PCB incurred losses from the PSL following adjustments to the league’s financial model. The losses primarily stem from alterations in the profit-sharing arrangement concerning the central revenue pool generated by the PSL.
The report discloses a significant loss of 1,637,977 million rupees due to an increase in the share allocated to PSL franchises from the central pool. Notably, any modifications to the financial agreement were supposed to be made only after the completion of the 10-year agreement in 2025.
Starting from the fifth edition of the league, the audit report points out that the PCB suffered losses due to changes in profit-sharing percentages. Franchises’ share in media rights increased to 80%, leaving only 20% for the board.
Similarly, sponsorship rights were divided with 40% going to franchises and 60% to the board, while ticket sales saw 90% going to franchises and only 10% to the PCB. This resulted in a missed potential revenue of 810 million rupees.
The financial setback escalated to 827 million rupees in the sixth edition, and the audit report predicts a substantial potential loss of 10,751 million rupees for the board from the 7th to the 12th edition if the profit-sharing formula continues favoring the franchises.
Furthermore, the report highlights revenue losses during the sixth and seventh editions of the PSL, which coincided with the Covid pandemic. Increased expenses related to travel, accommodation, match fees and medical costs amounted to 178 million rupees. Additional production expenses of 2.423 million dollars (545.175 million rupees) were incurred, and the report suggests a need for further investigation as these costs were supposed to be covered by the franchises.
The audit report points out lapses in securing bank guarantees from franchises, jeopardizing significant PSL income. In the fifth edition, the board failed to secure required bank guarantees, putting 3,293 million rupees at risk.
Moreover, the report raises concerns about the PCB not deducting income tax from prize money awarded to match-winning players in the fifth and sixth editions, leading to losses for the national treasury.
Media reports highlight that the PCB went to great lengths to project a positive financial image of the PSL as a brand, contrary to the concerns raised by the Auditor General’s report.The report suggests a need for a comprehensive investigation into the financial model and related matters of the PSL.
Contrary to public perception, the audit report indicates that the PCB incurred losses from the PSL following adjustments to the league’s financial model. The losses primarily stem from alterations in the profit-sharing arrangement concerning the central revenue pool generated by the PSL.
The report discloses a significant loss of 1,637,977 million rupees due to an increase in the share allocated to PSL franchises from the central pool. Notably, any modifications to the financial agreement were supposed to be made only after the completion of the 10-year agreement in 2025.
Starting from the fifth edition of the league, the audit report points out that the PCB suffered losses due to changes in profit-sharing percentages. Franchises’ share in media rights increased to 80%, leaving only 20% for the board.
Similarly, sponsorship rights were divided with 40% going to franchises and 60% to the board, while ticket sales saw 90% going to franchises and only 10% to the PCB. This resulted in a missed potential revenue of 810 million rupees.
The financial setback escalated to 827 million rupees in the sixth edition, and the audit report predicts a substantial potential loss of 10,751 million rupees for the board from the 7th to the 12th edition if the profit-sharing formula continues favoring the franchises.
Furthermore, the report highlights revenue losses during the sixth and seventh editions of the PSL, which coincided with the Covid pandemic. Increased expenses related to travel, accommodation, match fees and medical costs amounted to 178 million rupees. Additional production expenses of 2.423 million dollars (545.175 million rupees) were incurred, and the report suggests a need for further investigation as these costs were supposed to be covered by the franchises.
The audit report points out lapses in securing bank guarantees from franchises, jeopardizing significant PSL income. In the fifth edition, the board failed to secure required bank guarantees, putting 3,293 million rupees at risk.
Moreover, the report raises concerns about the PCB not deducting income tax from prize money awarded to match-winning players in the fifth and sixth editions, leading to losses for the national treasury.
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