Pakistan Cricket Board (PCB) spends about $43 million on national and international cricket every year, according to media reports. It receives about $16.5 million a year share from the International Cricket Council (ICC) as part of the new revenue sharing model while the rest comes from Pakistan Super League (PSL) and multiple bilateral cricket series with other ICC member nations. PCB could earn significantly more if India, with its huge media market, agrees to honor its prior commitments to play bilateral series with Pakistan. PCB has threatened to sue BCCI to recover $200 million in lost revenue since 2007.
ICC Revenue Sharing:
Under a new deal announced by the International Cricket Club (ICC) after its recent board meeting in Dubai, Pakistan's PCB will receive $132 million from 2015 through 2023. India's BCCI will receive $293 million across the eight-year cycle, the ECB $143 million, Zimbabwe Cricket $94 million and the remaining seven Full Members $132 million each. Associate Members will receive total combined funding of $280 million, according to ESPN sports network.
The new, more equitable revenue sharing model will replace the "Big Three" financial model drawn up by the boards of India, England and Australia that allocated much larger revenue share to them.
As expected India is not happy with the reduction in its share of the ICC revenue to $ 293 million. While the new distribution model is not a complete rollback to the equal funding from ICC events that Full Members like Pakistan used to receive, it is considerably lower than the $440 million the BCCI stood to earn under the Big Three model. The associate members of ICC would be the biggest losers if the BCCI demand for $440 million was accepted.
India, with its massive media market, generates significantly more revenue that any other national cricket team and it has not played a full bilateral series with Pakistan since 2007. PCB had signed an MoU with the BCCI officials in 2014 on the sidelines of an ICC meeting. Under the MoU, Pakistan and India were to play six bilateral series between 2015 and 2023 but India so far has refused to honor its commitment saying that the Modi government has not given it permission for bilateral cricket ties with Pakistan.
The BCCI has refused even to play Pakistan on neutral venues including Sri Lanka. PCB claims it has lost nearly $200 million because of India's failure to deliver. BCCI has also rejected ICC chief Shashank Manohar's offer of additional $100 million to Pakistan to cover its losses, according to India Today. PCB is now threatening to sue BCCI to recover its losses.
Pakistan Super League:
Pakistan Super League has become a significant source of revenue for PCB since its launch in 2016. The auction of the teams in 2016 generated $18.6 million for PCB in 2016, according to media reports. This year, PCB earned a profit of $2.6 million net after all the expenses of PSL's second season.
PCB chairman Shaharyar Khan said PCB plans to use the money for new cricket academies across the nation and to set up cricket programs at schools and universities and to sponsor cricket clubs. In addition, sports facilities like cricket pitches and grounds will be improved across the country.
Pakistan Cricket Board seems to be achieving self-sufficiency and the wherewithal to fund the sport of cricket in Pakistan better than ever before. In addition to the money from the ICC revenue sharing, PCB is also getting a new revenue stream from the PSL to help meet its needs. It's important that the PCB follows through on its plans to support cricket programs at schools and universities and cricket clubs, and to improve sports facilities in the country.