Pakistan Cricket Board stares at huge losses after India match refusal in T20 World Cup

NEW DELHI: The Pakistan Cricket Board (PCB) could be staring at massive financial losses if the ICC’s powerful governing board decides to penalise it for refusing to play the T20 World Cup match against India on February 15 in Colombo.

As per details gathered by PTI, Pakistan’s share in the ICC’s 2024–27 financial cycle stands at roughly USD 144 million, with the PCB entitled to an annual payout of around USD 38 million under the highest distribution slab.

“Basically, if the ICC decides to penalise Pakistan for not playing India, the PCB could take a big hit financially as the ICC share in the current financial cycle comes to approximately 40 billion PKR,” an insider said.

He added that this amount has helped the PCB stay financially stable, but any cut would create serious challenges for Pakistan cricket going forward.

Champions Trophy spending and limited returns

The insider confirmed that Pakistan has already received significant ICC payouts from the 2024 T20 World Cup and last year’s Champions Trophy, which the country hosted. The PCB also earned an additional USD 6 million from the Champions Trophy’s overall budget of USD 70 million.

However, he said the board spent heavily on organising the event, while revenue from gate collections and hospitality box sales remained limited.

Pakistan played only one home match during the tournament, as their clash against India was held at a neutral venue in Dubai following an agreement between the BCCI, PCB and ICC.

The PCB also spent close to 18 billion rupees on stadium upgradation work in Lahore, Karachi and Rawalpindi, projects that are still ongoing and have further impacted the board’s earnings.

Broadcasters, India-Pakistan factor and penalties

“The PCB is yet to get shares from the T20 World Cup this year and from the 50-over World Cup next year and that is where the ICC could impose financial penalties,” the insider said.

He explained that since the PCB is a signatory to the participating teams’ agreement for ICC events, and unless force majeure applies, the ICC and broadcasters could push for heavy penalties and compensation.

According to rough estimates, broadcasters who paid USD 3 billion to the ICC for the current cycle rely heavily on India-Pakistan matches, with each fixture estimated to generate around USD 250 million or more.

Across four ICC events in this cycle, broadcasters are guaranteed nearly USD 1 billion from four India-Pakistan matches. If those games are not played, it could lead to a sharp reduction in distributions to member boards.

PSL revenues, expenses, and audit concerns

The PCB’s other major revenue stream includes around USD 42 million in franchise fees starting from the 11th edition of the PSL, following the addition of two new teams.

The new franchises were sold for 175 crore (around USD 6.2 million) and 185 crore (around USD 6.65 million). After revaluation of five of the six existing teams, the PCB will now earn roughly USD 20 million annually from them.

The board is also set to auction the Multan Sultans franchise this month and, based on recent trends, it could fetch around 200 crores, close to USD 7 million, contributing to the total franchise revenue pool.

At the same time, the PCB distributes 95 percent of the PSL’s central pool revenues from broadcasting rights, sponsorships and advertising, while franchises receive 90 percent of total gate collections.

The insider noted that PCB revenues also include sponsorship deals and sale of home international and domestic media rights, but expenses remain high.

“But the PCB also has huge expenses which include subsidising the domestic events, salaries and administration expenses, perks for around 700 to 800 employees,” he said.

He also pointed out that a 2023 audit report by the Auditor General of Pakistan highlighted issues related to franchise fee recovery and lack of bank guarantees in some cases.

The audit had earlier projected a potential loss of 10.751 million rupees from the 7th to 12th PSL editions, though that estimate came before the sale of the two new franchises.

Other key expenses include around USD 5–6 million annually towards central contracts for players. Since 2023, the PCB has also not published any audited financial report on its website, a practice commonly followed by cricket boards worldwide.

(With PTI Inputs)