NEW DELHI: The Pakistan Cricket Board (PCB) has shifted all financial dealings with Pakistan Super League (PSL) teams from US dollars to Pakistani rupees, a move that has sparked debate over whether it benefits the franchises or the board itself.

The actual commercial value of the PSL and its six teams has long remained unclear, and the latest development has only added to that uncertainty. Recent evaluations carried out by independent international auditors saw three teams - Lahore Qalandars, Quetta Gladiators and Peshawar Zalmi - already extending their agreements for another 10 years without resistance.

However, the smooth renewals have triggered discussion within cricket circles about how much the franchise fees have truly increased under the revised valuations, especially now that all transactions will be conducted in PKR for the next decade.

Information accessed by this correspondent indicates that the revised franchise valuations may have increased by only 45 to 90 percent across the six teams. At the same time, the PCB is preparing to introduce two new franchises, with their identities expected to be revealed on January 6.

When the PSL was launched in 2016, all financial dealings with teams were conducted in US dollars, and franchise rights were also sold in USD. For instance, Lahore Qalandars secured their franchise rights for USD 25 million over 10 years, which translated to an annual payment of USD 2.5 million to the PCB.

At that time, the exchange rate in Pakistan stood at roughly 105 rupees to a dollar.

But in the next three years the dollar rate went up to 175 and by 2019 the franchises complained they were bleeding losses.

The reason was that while in the first year Lahore paid an annual fee of 26.5 crore rupees to the PCB under the 105 dollar rate by 2019 they paid 43.75 crores annual fees under the increased dollar rate of 175 rupees.

A similar situation was faced by the other franchises and they pressurized the PCB to reconsider the financial model. The PCB relented by first increasing their share in the central pool of revenue to 95 percent and agreeing to cap the dollar rate at 175 rupees.

After 2019 the franchises paid their franchise fees at the fixed dollar rate of 175 while in reality the dollar rate went up exponentially and is trading at 281 rupees at present.

The big question now is with the PCB resorting to rupee transactions will the franchises be paying more or less then they did in the first phase of 10-years?

If the PCB applied the current dollar rate, the same 2.5 million dollars Lahore paid in the first phase would calculate to around 70 crore Pakistani rupees annual fees.

The rumors are that Lahore’s new franchise fees after evaluation is 66 crores but it is not confirmed as yet by the board.

One major problem being seen with the PSL is the lack of foreign investors, sponsor or foreign owners.

And add to that the cold ties between the most expensive franchise of the PSL, Multan Sultans (annual franchise fees of USD 6.35 million) and the PCB due to which apparently they have not got the renewal documents as yet.

(With PTI Inputs)