The Pakistan Auditor General’s office has uncovered significant revenue losses for the Pakistan Cricket Board (PCB) in the millions of rupees. These losses are attributed to the financial sharing model with the six franchises and various irregularities within the Pakistan Super League (PSL). The PCB allegedly went to great lengths to present a positive financial image of the PSL as a brand, despite concerns raised by the Auditor General’s report. The report recommends a comprehensive investigation into the financial model and related matters of the PSL.
Contrary to public perception, the audit report reveals that the PCB incurred losses from the PSL due to adjustments in the league’s financial model. These losses primarily resulted from changes 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. It is worth noting that 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 highlights 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. These alterations 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. Additionally, the report suggests a need for further investigation as the franchises were supposed to cover additional production expenses of 2.423 million dollars (545.175 million rupees).
The audit report also raises concerns about the PCB’s failure to secure bank guarantees from franchises, putting significant PSL income at risk. In the fifth edition, the board did not secure the required bank guarantees, jeopardizing 3,293 million rupees.
Moreover, the report points out lapses in income tax deductions from prize money awarded to match-winning players in the fifth and sixth editions, resulting in losses for the national treasury.
Overall, the audit report highlights substantial revenue losses for the PCB in the PSL due to various irregularities and changes in the profit-sharing model. It suggests the need for a comprehensive investigation into the financial matters of the PSL.
The Pakistan Auditor General’s office has released an audit report revealing significant revenue losses for the Pakistan Cricket Board (PCB) in the millions of rupees. These losses are attributed to the financial sharing model with the six franchises and various irregularities within the Pakistan Super League (PSL). The PCB has been accused of projecting a positive financial image of the PSL despite concerns raised by the audit report. The report calls for a comprehensive investigation into the financial model and related matters of the PSL. The losses incurred by the PCB primarily stem from alterations in the profit-sharing arrangement with the franchises. Changes in profit-sharing percentages for media rights, sponsorship rights, and ticket sales have resulted in missed potential revenue for the PCB. Additionally, the report highlights revenue losses during the sixth and seventh editions of the PSL due to increased expenses related to the Covid pandemic. The audit report also raises concerns about the PCB failing to secure required bank guarantees from franchises and not deducting income tax from prize money awarded to match-winning players.
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