As many as 10 out of 12 parties have been cleared to participate in the upcoming Pakistan Super League (PSL) franchise auction. The shortlisted bidders will compete to acquire two new teams on January 8 in Islamabad.
The opportunity to own a PSL franchise comes after an eight-year gap, with the league completing a decade since its inaugural season in 2016. The PCB, the sole regulatory body of the PSL under existing contracts, had long planned to expand the league by adding two new teams in 2026, increasing the total number of franchises from six to eight.
The last franchise sale occurred in 2018, when Multan Sultans were introduced. The league had originally started with five teams, playing its first seasons in the United Arab Emirates.
A Shift to Open Auction
The franchise sale process has changed significantly this time. Moving away from the traditional sealed-bid method, the PCB has opted for an open auction, a move expected to trigger a competitive bidding war. Entry into the auction is not automatic; interested parties underwent a scrutiny process assessing financial strength, reputation, business legitimacy, management expertise, and long-term sustainability.
Bidders were required to pay a non-refundable participation fee of USD 20,000 (PKR 5,640,000). In addition, each bidder submitted a bid security of USD 200,000 (PKR 56.4 million). For unsuccessful bidders, the PCB will refund the security in full, without interest. For successful bidders, the amount will be adjusted against the initial franchise payment. However, failure to sign the franchise agreement within three days, missing payments, or not providing required guarantees will result in forfeiture of the bid security.
Team Identity and Auction Format
The highest bidders will secure a PSL franchise and can choose their team identity from a closed list of six cities: Faisalabad, Rawalpindi, Hyderabad, Sialkot, Muzaffarabad, and Gilgit. If a winning bidder proposes a name outside this list, the PCB may consider it at its discretion, subject to a one-time fee of USD 1 million.
The auction will open with a reserve price, revealed beforehand, and will proceed in two rounds of real-time bidding. The highest bidder not only wins the franchise but also gains the first choice of city. Franchise rights will be granted for 10 years, until 2035, with the option for first right of refusal. During the initial three years, franchisees cannot sell, transfer, or assign any team rights. According to the bid document, the PCB guarantees a minimum revenue of PKR 85 crore per season for each new franchise over the next five editions.
Revenue Streams for Franchises
The majority of a PSL franchise’s revenue comes from the PCB’s central pool. This includes media rights, with 95% of TV and digital earnings shared among all teams, and 95% of income from PCB title and ground sponsorships. Gate receipts, including corporate boxes, hospitality, and general stadium tickets, also contribute, although totals are often affected by complimentary tickets. Ninety-five percent of gate revenue is distributed equally among franchises, regardless of which team attracts larger crowds.
Beyond the central pool, franchises generate direct income through their own commercial deals. These include selling sponsorship placements on team shirts, helmets, and trousers, with up to 12 slots available, as well as other digital commercial agreements, forming a separate revenue stream.
Why the PCB Waited Eight Years to Add Teams
The PCB delayed adding new franchises largely due to contractual and financial considerations. The PSL operates on a shared revenue model, where 95% of all income is distributed among the six existing franchises and only 5% goes to the PCB.
With existing media and commercial contracts in place, the board needed to ensure that current franchises remained financially sustainable. Introducing new teams earlier could have reduced earnings for existing franchises. Starting from the 11th season, with the addition of two new teams, the PCB plans to renew all commercial and media contracts, making it an ideal time for expansion.
Status of Existing Franchises
While other franchises were confirming renewals, Multan Sultans owner Ali Tareen announced his departure from the team he owned for seven years. Tareen reportedly did not receive renewal documents, reportedly due to public criticism of league management. Under the Tareen family, Multan Sultans paid PKR 7,700 million to the PCB over seven years, with the new franchise fee set at PKR 1,375 million.
Existing franchises are also required to pay increased annual fees after 10 years. The yearly rights fee will rise by either 25% of the current fee or 25% of the franchise’s new market valuation, whichever is higher. Based on new valuations, Lahore Qalandars is the most valuable PSL team with a franchise fee of PKR 67 crore, up 25% from PKR 42.5 crore. The other franchises’ new fees are: Karachi Kings PKR 63.875 crore, Peshawar Zalmi PKR 48.75 crore, Islamabad United PKR 47 crore, and Quetta Gladiators PKR 35.95 crore.
The opportunity to own a PSL franchise comes after an eight-year gap, with the league completing a decade since its inaugural season in 2016. The PCB, the sole regulatory body of the PSL under existing contracts, had long planned to expand the league by adding two new teams in 2026, increasing the total number of franchises from six to eight.
The last franchise sale occurred in 2018, when Multan Sultans were introduced. The league had originally started with five teams, playing its first seasons in the United Arab Emirates.
A Shift to Open Auction
The franchise sale process has changed significantly this time. Moving away from the traditional sealed-bid method, the PCB has opted for an open auction, a move expected to trigger a competitive bidding war. Entry into the auction is not automatic; interested parties underwent a scrutiny process assessing financial strength, reputation, business legitimacy, management expertise, and long-term sustainability.
Bidders were required to pay a non-refundable participation fee of USD 20,000 (PKR 5,640,000). In addition, each bidder submitted a bid security of USD 200,000 (PKR 56.4 million). For unsuccessful bidders, the PCB will refund the security in full, without interest. For successful bidders, the amount will be adjusted against the initial franchise payment. However, failure to sign the franchise agreement within three days, missing payments, or not providing required guarantees will result in forfeiture of the bid security.
Team Identity and Auction Format
The highest bidders will secure a PSL franchise and can choose their team identity from a closed list of six cities: Faisalabad, Rawalpindi, Hyderabad, Sialkot, Muzaffarabad, and Gilgit. If a winning bidder proposes a name outside this list, the PCB may consider it at its discretion, subject to a one-time fee of USD 1 million.
The auction will open with a reserve price, revealed beforehand, and will proceed in two rounds of real-time bidding. The highest bidder not only wins the franchise but also gains the first choice of city. Franchise rights will be granted for 10 years, until 2035, with the option for first right of refusal. During the initial three years, franchisees cannot sell, transfer, or assign any team rights. According to the bid document, the PCB guarantees a minimum revenue of PKR 85 crore per season for each new franchise over the next five editions.
Revenue Streams for Franchises
The majority of a PSL franchise’s revenue comes from the PCB’s central pool. This includes media rights, with 95% of TV and digital earnings shared among all teams, and 95% of income from PCB title and ground sponsorships. Gate receipts, including corporate boxes, hospitality, and general stadium tickets, also contribute, although totals are often affected by complimentary tickets. Ninety-five percent of gate revenue is distributed equally among franchises, regardless of which team attracts larger crowds.
Beyond the central pool, franchises generate direct income through their own commercial deals. These include selling sponsorship placements on team shirts, helmets, and trousers, with up to 12 slots available, as well as other digital commercial agreements, forming a separate revenue stream.
Why the PCB Waited Eight Years to Add Teams
The PCB delayed adding new franchises largely due to contractual and financial considerations. The PSL operates on a shared revenue model, where 95% of all income is distributed among the six existing franchises and only 5% goes to the PCB.
With existing media and commercial contracts in place, the board needed to ensure that current franchises remained financially sustainable. Introducing new teams earlier could have reduced earnings for existing franchises. Starting from the 11th season, with the addition of two new teams, the PCB plans to renew all commercial and media contracts, making it an ideal time for expansion.
Status of Existing Franchises
While other franchises were confirming renewals, Multan Sultans owner Ali Tareen announced his departure from the team he owned for seven years. Tareen reportedly did not receive renewal documents, reportedly due to public criticism of league management. Under the Tareen family, Multan Sultans paid PKR 7,700 million to the PCB over seven years, with the new franchise fee set at PKR 1,375 million.
Existing franchises are also required to pay increased annual fees after 10 years. The yearly rights fee will rise by either 25% of the current fee or 25% of the franchise’s new market valuation, whichever is higher. Based on new valuations, Lahore Qalandars is the most valuable PSL team with a franchise fee of PKR 67 crore, up 25% from PKR 42.5 crore. The other franchises’ new fees are: Karachi Kings PKR 63.875 crore, Peshawar Zalmi PKR 48.75 crore, Islamabad United PKR 47 crore, and Quetta Gladiators PKR 35.95 crore.
