The Pakistan Cricket Board (PCB) is close to finalizing its most expensive commercial deal ever for the Pakistan Super League (PSL). According to The Express Tribune, a PKR 18 billion media rights contract is on the table for the PSL, and the proposed deal is expected to set a new standard for sports broadcasting.
The upcoming season of PSL is scheduled to start from March 26. In particular, the growth of the league has increased the value of media rights. The PSL schedule clashes with the Indian Premier League (IPL) for the second time in a row, which could limit the availability of foreign stars for the T20 tournament in Pakistan.
Pakistan Cricket Board eyes record PKR 4.5 billion-per-year PSL media rights deal
The PCB recently opened bidding for a four-year media rights deal for the Pakistan Super League, but two major sports channels were disqualified after failing to pay long-pending dues. Despite being given additional time, the broadcasters did not pay their dues.
According to The Express Tribune, a company which already has a PSL franchise has emerged as the frontrunner. The bid is valued at PKR 4.5 billion per year, making the total deal worth approximately PKR 18 billion over four years. If finalized, it would become the most expensive broadcast deal in PSL history.
The matches are likely to be telecast on state broadcaster Pakistan Television (PTV). Meanwhile, the two ineligible channels reportedly owe the PCB PKR 4.7 billion and over PKR 600 million respectively, which ultimately ruled them out of the bidding process.
PCB Bars Consortium bid to ensure fair competition in PSL media rights auction
PCB has changed its rules for the PSL media rights bidding process. Broadcasters are not allowed to form consortiums. The Board has taken this step to avoid any kind of collusion and ensure fair competition.
Companies may bid separately for television and digital streaming rights. Each bid requires a security deposit of PKR 100 million. The winning bidder’s deposit will be adjusted, while others will receive a refund.
PCB has not yet disclosed the reserve price. However, it is estimated that the broadcast rights could be valued at around PKR 18 billion, while the digital streaming rights could start at PKR 6 billion and go up to PKR 7 billion.
PSL expansion boosts value of media rights ahead of 11th season
After the inclusion of two new teams, the number of matches in PSL will increase from 34 to 44. An increase of ten matches per season would make the proposed four-year media rights deal equivalent in value to the previous five-year contract. The 11th edition of PSL is scheduled to start from March 26.
Despite expansion, costs are also rising, with production expenses crossing PKR 1 billion last year. One media channel had already been blacklisted in the bidding race and was not expected to submit a strong offer, leaving the field open for a company associated with the PSL franchise.
Under PCB rules, a portion of the surplus in any broadcast deal worth more than PKR 3 billion will be set aside for signing prestigious foreign players, with US$500,000 reserved for that purpose. The remaining surplus will be shared, with 80% going to the PCB and 20% to the franchises.
ALSO READ: Shahid Afridi humiliates Shadab Khan with cruel ‘beta’ taunt