PSL expands as Hyderabad and Sialkot fetch record bids: Details
What's the story
The Pakistan Super League (PSL) has expanded to eight teams with the addition of Hyderabad and Sialkot. The new franchises were sold at record-breaking prices during an auction on Thursday. US-based aviation and healthcare company FKS acquired the Hyderabad franchise for PKR 1.75 billion ($6.2 million). Meanwhile, real estate consortium OZ Developers won the rights to the Sialkot team with a bid of PKR 1.85 billion ($6.55 million).
Auction details
Bidding process and competition
The auction started with a base price of PKR 1.1 billion, the franchise fee to be paid to the Pakistan Cricket Board for running a franchise. FKS's CEO Fawad Sarwar opened with a bid of PKR 1.4 billion, triggering an aggressive bidding war against financial technology company i2c. The competition saw FKS outpacing i2c in large jumps, eventually clinching the Hyderabad franchise at PKR 1.75 billion after several rounds of intense bidding.
Fee comparison
Hyderabad franchise fee surpasses existing teams
The franchise fee for Hyderabad is way higher than the existing PSL teams. The highest fee paid by Lahore Qalandars is PKR 670 million, which is nearly three times lower than Hyderabad's. In fact, Hyderabad's fee is equal to the combined fees of Lahore, Karachi, and Peshawar teams. This shows how much value FKS sees in owning a team in this league.
Record-breaking bid
Sialkot franchise secures highest bid in PSL history
The base price for the second team was set at PKR 1.7 billion. OZ Developers's CEO Hamza Majeed outbid i2c with a bid of PKR 1.85 billion, making Sialkot the most expensive franchise in PSL history. The existing five franchises are valued between PKR 370 million and PKR 670 million ($1.2 million to $2.4 million). This shows how much demand there is for these teams and how far people are willing to go to own one.
Future plans
Multan franchise to be auctioned next year
PCB Chairman Mohsin Naqvi has announced that another team, Multan, will be up for sale next year. After the owner of Multan Sultans, Ali Tareen, withdrew due to differences with PCB and PSL authorities, the Pakistan Board decided to run the team this season before putting it up for sale. Tareen was approved as a bidder but chose not to participate in the auction for these new teams.