Game changer
by Tauqeer Muhajir
Despite tentative beginnings, the potential offered by the PSL goes beyond cricket. But for the PSL to succeed, it needs to be developed at a Test-match pace rather than a T20 one
It’s a case of better late than never: Pakistan might be the last to board the premier T20 league train, after India, Australia, West Indies, and even Bangladesh, but here we are nonetheless, without an overdose of Bollywood song and dance, without an array of celebrity power, and despite much antagonism at home.
To be hosted in Sharjah and Dubai between Feb 4 and Feb 23, the Pakistan Super League (PSL) pledges to propel the cricket-starved country and the cash-starved Pakistan Cricket Board (PCB) towards commercial viability and greater professionalism.
The first instalment of the tournament features only five teams — Islamabad United, Karachi Kings, Lahore Qalandars, Peshawar Zalmi and Quetta Gladiators — and in all probability, will return a negative net profit margin despite a total investment of $93m.
On the surface, in this day and age of broadcast and sponsorship rights, this investment pales in comparison to the money brought in by other T20 leagues being played around the world. The Indian Premier League (IPL), for example, boasts franchise values of around $700m, not to mention the $1.75billion from the sale of TV rights for a decade. In comparison, the PSL has only been able to muster $20m for three years from broadcasting rights.
But a closer inspection of the fine print reveals that even in comparison to the IPL, the PSL has done well till now. Back in January 2008, when eight IPL teams were first auctioned, the Indian cricket board generated a combined $724m from franchise sales. But this amount was to be paid in 10 annual instalments, thereby handing each team about $9m every year.
In comparison, Islamabad United’s sale at $1.5m fares well, as Pakistani products’ value is gauged on a 1:10 ratio against Indian products. In effect, the inaugural value of Islamabad United would be calculated as $15m, which is over and beyond the $9m average earned by IPL teams. By the same logic, therefore, Karachi Kings’ sale at $2.6m is a major coup.
PCB sources define this period as a “teething process,” from which the Board, franchises, sponsors and other stakeholders have already drawn many lessons.
“The biggest chunk of revenue generated is always from broadcasting deals, but the underdevelopment of sports broadcasting in Pakistan has meant that we are somewhat handicapped on that front,” explains a PCB source.
Industry insiders believe that scheduling of the PSL has come at an inopportune time, which might see advertisers invest cautiously in the PSL.
“A limited pool of advertising money is now being split four ways: to the MCL, PSL, IPL and then the T20 World Cup. With the MCL being played simultaneously as the PSL, we are already seeing the first signs of advertising money being split between the two leagues,” says one advertising executive.
Another argues that with Habib Bank bagging title sponsor rights for the first edition of the PSL, there will be some advertising impetus, but again, its extent is likely to be limited. “Advertising on television might see a spike during matches since those are prime slots,” he says.
But both advertising executives assert that the market is clear about not gauging PSL’s success over the first year.
“It is a new product; it will take time to become established. Its success will be evaluated after three or four years, once its teething problems are over. Only then can we have a discussion about whether the league is sustainable or not, or whether sponsors still retain their interest or not,” says the first advertising executive.
“The mere fact that the PSL is being held is ‘success’ at this stage,” says the second. “In the first attempt, success cannot be gauged in terms of money but in organising the competition.”
It is clear that the financial side of things will take a bit more time to become established, but the PSL having to be played abroad and not in Pakistan has a major impact on the numbers floating around.
Consider, for example, ticket sales: all tickets are being sold in UAE dirhams and the PCB will also be paying the cost of organising the tournament in dirhams. Were the league to be held at home, ticket sales would arguably be higher and franchises would have greater control over gate money received.
But in the meantime, till the PSL doesn’t return home, there are plenty of opportunities for franchises to grow, both on the field and off it.
Since the teams participating are all private entities, set up to encourage greater professionalism in cricket, there are larger plans among the franchises to launch cricket academies and attract local talent. Peshawar Zalmi, for example, have announced setting up an academy in the Federally Administered Tribal Areas (Fata), for which land has already been allotted by the Khyber Pakhtunkhwa government.
For young Pakistani talent on show at the PSL, there is great opportunity to share a dressing room with international stars and seniors from the Pakistan team. They’ll be coached by big-name coaches and their talent will be honed by specialised trainers. Away from the grind of domestic cricket, the PSL offers elite exposure and experience to those selected. In turn, youngsters selected for the national team will be more aware of what is needed to cut it at the international level.
Encouragingly for most franchises, Pakistani consumers have already begun warming up to the idea of a premier T20 league that they could call their own. Lahore-based online seller Ahmed Majeed has been receiving orders for fan merchandise, but he says that the Rs950 price point is proving to be prohibitive for clients.
“We receive orders largely through Facebook. I have already sold over 350 Lahore Qalandars t-shirts and a fair few for Karachi Kings. But many clients often make phone calls to simply ask if we can reduce selling prices; we always refuse, of course, and nearly all of them declined to place an order,” he says.
For more detail The promise of Pakistan Super League
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