Monitoring Desk
As sportsmen battle it out on the field, the businessmen behind PSL seem to have already emerged as clear winners. Still, two variables stand in between them and the real big bucks: getting a grip on corruption and being able to play PSL at home.
“From a corporate perspective, Pakistan Super League has all the ingredients to become the biggest brand in Pakistan, bigger than any other sports and entertainment brand currently on display,” Chief Operating Officer (COO) of Islamabad United, ShoaibNaveed told Profit days before the start of PSL 2.
Little did he know, players from his own franchise would put the league’s very future at stake just when the second season kicked off.
The match-fixing scandal, which rocked the lucrative league on its second day became international news after the Pakistan Cricket Board (PCB) suspended United’s Sharjeel Khan, the star of PSL’s first season, along with teammate Khalid Latif for the duo’s alleged involvement in fixing. Few days later, former opener NasirJamshed was arrested along with a bookie from London in connection with the same case.
As we write this report, Mohammad Irfan, also a United player, remains under investigation while NasirJamshed – not part of any PSL team – was identified as the link between the two suspended United players and the bookie. Both Nasir and Yousaf (bookie) were subsequently arrested in London and released on bail to appear in a UK court in April. It is still however too early to comment on how the whole scandal will affect the growing popularity of PSL, which experts say can become one of Pakistan’s largest brands in years to come.
Amidst all the brouhaha, at least one thing is certain that the stakes are high and PSL means business to every stakeholder. The PCB’s swift response to the incident sends a clear message: there is zero tolerance for anything that can hold PSL back or stand in its way to success.
To understand what is at stake and what is driving all this optimism in the first place and criticism that follows, Profit takes a detailed look at the brand PSL, whose very launch — let alone success — was in doubt until it picked up momentum in the second half, courtesy some spectacular cricket, which pulled huge audience to the grounds and back home on TV.
The defending champions, Islamabad United is a case in point when it comes to commercial success of a PSL franchise. Ali Naqvi and AmnaNaqvi of Leonine Global Sports bought United for $15 million, the second lowest bid price for a PSL franchise, but the team went on to claim the title in the inaugural edition — and this was not the only thing it won.
In other words, this marriage of business with the country’s most sought-after sport opened up new opportunities for franchise owners, which range from building a valuable property to international fame and offers from big businesses lining up for sponsorship rights — that seems to be the case with Naqvis, at least.
Backed by powerful brands, the likes of Qmobile, Pakistan Telecommunication Company, JS Bank, and Igloo to name but a few, United now boosts a Facebook fan following of 2.8 million, highest for any PSL franchise — the list doesn’t not include a host of secondary and tertiary sponsors.
Given that it was bought for a lower price, United benefited the most in terms of appreciation in its brand value. According to PCB, each franchise saw its value more than double on the back of PSL’s growing popularity. According to a report by Dawn, the PSL chief NajamSethi said they have received offers for a sixth franchise and the amount quoted was double the average price ($18.6 million) of the first five franchises who bought the rights for 10 years.
A market survey by Profit, which includes background interviews of officials from franchises, PCB and advertising agencies, suggest that the value of United and Quetta Gladiators (the finalists of PSL1 ) has increased three-folds.
