PSL salary cap reduced to minimise franchise losses

To reduce the losses caused by the PSL franchise, the PCB reduced payroll caps, reducing the overall squad from $ 1.36 million to $ 1.1 million.

The PSL franchise has had a hard time turning profits since the tournament began in 2016. In January this year, Islamabad United, Karachi Kings, Lahore Qalandars, Peshawar Zalmi, and Quetta Gladiators reported losses of 200 billion to 70 billion PKR. $ 1 million in the first two seasons (about $ 1.4 million to $ 5 million)

The PCB met with representatives from six teams on Monday, and in addition to lowering the salary limit, it did not pay a bank guarantee of US $ 145.11 million before the 2020 season.

Wasim Khan, CEO of PCB, said, “We had informed discussions with our valued partners and found a way forward. "We will continue to prepare for the HBL PSL 2020 season. We will be preparing the whole edition in Pakistan and the franchise is with us."

ESPNcricinfo understands that the pay cap has changed after most players playing PSL understand that they are lowering their wages by participating in other franchise-based T20 leagues.

PCB offered an additional USD of USD 1,38 million in five categories: platinum (USD 570,000), diamond (USD 270,000), gold (USD 180,000), silver (USD 140,000) and emerging (USD 25,000). Supplemental Players: 175,000

According to internal PCB documentation, the IPL franchise spent $ 1.35 million on CPL USD 0.764 million, Global T20 Canada USD 0.65 million, and the postponed Euro T20 Slam used about 0.65 m pockets.

The financial structure caused a lot of friction between the PCB and the PSL franchise and reached its peak when the board was late to distribute some of the franchise's profits during the 2019 season. As a result, all six owners refused to submit a bank guarantee. The General Assembly of PSL gathered in Karachi to discuss the matter with PCB chairman Ehsan Mani. Qalandars and Multan Sultans were directly represented by the owners, and the rest of the team sent a proxy.

The depreciation of the Pakistan Rupee against the US dollar was another controversial bone. When signing the franchise contract in 2016, the exchange rate fixed Pakistan Rupees at $ 105. Its value has now fallen to 154.

As a comfort to the owner, the PCB agreed to fix this transition to PKR 138.50. The PCB also works with consultants to evaluate the financial model and advises the PCB to find the midpoint.