- The league drives revenue and tourism, attracting global players and boosting local businesses
The Pakistan Super League (PSL) is a professional Twenty20 cricket league that has revolutionised the cricketing landscape in Pakistan since its inception in 2016. Featuring a franchise-based model, the PSL has attracted top international players, providing a platform for Pakistani talent to shine alongside global cricketing stars. With its exciting matches, passionate fan base, and high-quality cricket, the PSL has become a premier sporting event in Pakistan, promoting the country’s cricketing culture and contributing to the growth of the sport so, there is no doubt in the fact that, the Pakistan Super League (PSL) has emerged as a significant contributor to Pakistan’s economy, generating substantial revenue through various channels such as sponsorships, broadcasting rights, and merchandise sales.
The league’s popularity has also led to increased tourism, with international players and fans visiting Pakistan, thereby boosting the hospitality industry. Moreover, the PSL has created new business opportunities, including sports management, marketing, and event organisation, which are emerging as promising economic activities in the country.
The PSL’s impact extends beyond the economic realm, as it has also played a vital role in promoting Pakistan’s image globally. By showcasing the country’s ability to host high-profile international events, the PSL has helped to attract foreign investment and improve Pakistan’s reputation. Furthermore, the league has provided a platform for Pakistani players to showcase their talent, potentially leading to increased opportunities for national team players and emerging talent.
As the PSL continues to grow, it is likely to have a lasting impact on Pakistan’s sports industry and economy, paving the way for other emerging economic activities such as sports tourism, event management, and sports-related entrepreneurship. In addition, PSL has a significant impact on various industries, extending beyond the cricket field. The league’s growth has benefited businesses and communities associated with PSL host cities, injecting finances through commercial activities.
Industries such as hospitality, tourism, and local businesses thrive during the PSL season, generating revenue and creating jobs. Additionally, companies involved in sports management, marketing, and event organization have also seen new opportunities emerge. Furthermore, technology companies, like those providing data tracking solutions such as PSL Data track used by Addmore Engineering Limited, have benefited from the league’s adoption of innovative solutions. The PSL’s influence can also be seen in the growing importance of sustainable practices, such as using recycled materials for promotional items, reflecting a broader trend towards environmental responsibility in industries linked to the league.
Revenue growth
A cost-revenue analysis of past Pakistan Super League (PSL) tournaments reveals a significant growth in revenue streams, including sponsorships, broadcasting rights, and ticket sales. The league’s revenue has increased substantially over the years, with major sponsorship deals contributing to its financial success. For instance, the PSL’s revenue grew from approximately PKR 1.5 billion in 2016 to around PKR 5.5 billion in 2022, with sponsorship deals accounting for a significant portion of this revenue. Broadcasting rights have also been a major contributor, with deals worth hundreds of millions of rupees.
However, the costs associated with hosting the tournament, such as venue rental, security, and player fees, are also substantial, ranging from PKR 1.2 billion to PKR 3.5 billion per season. Despite these costs, the PSL has managed to maintain a profitable business model, with revenue exceeding costs in most seasons. The league’s ability to attract high-profile sponsors and broadcasters has been a key factor in its financial success, and its growing popularity has also led to increased revenue from ticket sales and merchandise.
Overall, the PSL’s cost-revenue analysis suggests that the league is a viable and profitable business venture, with potential for further growth and development.
To maximise economic outcomes from the Pakistan Super League (PSL), consider the following suggestions:
Economic outcomes:
- Increase local sponsorship: Encourage local businesses to sponsor the PSL, promoting their brands and products to a wider audience.
- Merchandising and licensing: Develop and sell PSL merchandise, such as jerseys, caps, and other apparel, to generate additional revenue.
- Tourism promotion: Highlight Pakistan’s cultural and tourist attractions during PSL broadcasts and events, encouraging visitors to explore the country.
- Job creation: Provide training and job opportunities in sports management, marketing, and event organization to develop a skilled workforce.
- Infrastructure development: Invest in upgrading stadiums, training facilities, and other infrastructure to support the growth of cricket and other sports in Pakistan.
- Digital presence: Enhance the PSL’s digital presence through social media, streaming services, and e-commerce platforms to reach a broader audience and increase revenue.
- Partnerships and collaborations: Foster partnerships with international cricket boards, leagues, and organizations to attract foreign investment, expertise, and audiences.
- Community engagement: Organise community outreach programmes, coaching clinics, and other initiatives to promote cricket and healthy lifestyles among Pakistan’s youth.
- Sustainable practices: Incorporate sustainable practices into PSL operations, such as energy-efficient lighting and waste reduction, to minimise the league’s environmental impact.
- Economic impact studies: Conduct regular economic impact studies to assess the PSL’s contribution to Pakistan’s economy and identify areas for improvement.
Policy recommendations for the government to take monetary and non-monetary advantages from PSL:
Monetary advantages:
- Tax incentives: Offer tax incentives to PSL sponsors, advertisers, and partners to encourage investment in the league.
- Revenue sharing model: Implement a revenue sharing model between the government and PSL governing bodies to generate revenue for the government.
- Sponsorship support: Provide support for PSL sponsorship deals by offering guarantees or subsidies to attract international sponsors.
Non-monetary advantages:
- Promoting tourism: Utilise PSL events to promote Pakistan’s tourism industry by showcasing the country’s cultural and natural attractions.
- International relations: Leverage PSL’s international profile to strengthen diplomatic relations with other countries and promote Pakistan’s image globally.
- Youth development: Support PSL’s community outreach programmes and initiatives that promote cricket and healthy lifestyles among Pakistan’s youth.
- Infrastructure development: Invest in upgrading sports infrastructure, such as stadiums and training facilities, to support the growth of cricket and other sports in Pakistan.
- Brand Pakistan: Encourage the use of PSL as a platform to promote “Brand Pakistan” and showcase the country’s soft power.
Regulatory support:
- Streamlined regulations: Simplify regulatory procedures for PSL governing bodies, sponsors, and partners to ensure a smooth operation of the league.
- Visa facilitation: Facilitate visas for international players, officials, and spectators to ensure their smooth entry into Pakistan for PSL events.
- Security arrangements: Ensure adequate security arrangements for PSL events to protect players, officials, and spectators.
Hence, PSL has revolutionised Pakistan’s cricketing landscape since its inception in 2016, attracting top international players and promoting the country’s cricketing culture. Beyond its sporting success, the PSL has emerged as a significant contributor to Pakistan’s economy, generating substantial revenue through sponsorships, broadcasting rights, and merchandise sales.
The league’s growth has also led to increased tourism, new business opportunities, and job creation, benefiting various industries such as hospitality, tourism, and local businesses. With its profitable business model and growing popularity, the PSL is poised to have a lasting impact on Pakistan’s sports industry and economy.
To maximise economic outcomes, suggestions include increasing local sponsorship, merchandising, tourism promotion, job creation, infrastructure development, and digital presence. Policy recommendations for the government include offering tax incentives, implementing a revenue sharing model, and providing sponsorship support to further leverage the PSL’s economic potential.
The Author is MD IRP/ Faculty Department of H&SS-Bahria University Karachi