PSL expansion auction signals major commercial leap as Sialkot, Hyderabad sold at record valuations

Islamabad: The Pakistan Super League (PSL) entered a decisive new chapter in its evolution on Thursday as the league’s long-planned expansion formally took shape with the sale of two new franchises, Sialkot and Hyderabad during a high-profile bidding auction held at the Islamabad Convention Center.

The auction, overseen by the Pakistan Cricket Board (PCB), concluded with record-setting franchise fees, reinforcing the PSL’s position as one of the most commercially robust sporting properties in the country. The Sialkot franchise was sold for Rs1.85 billion, while Hyderabad was acquired for Rs1.75 billion, figures that comfortably surpass most existing franchise valuations within the league.

What made the outcome particularly significant was the profile of the winning bidders. Unlike earlier PSL ownership models that were largely dominated by Pakistan-based business groups, both new franchises were acquired by overseas-based investors, reflecting the league’s expanding international appeal and its ability to attract foreign capital tied to Pakistan’s cricket economy.

PCB officials described the auction as a strategic success, noting that overseas participation was a key objective of the expansion process. The board has, over recent years, prioritised financial sustainability and long-term revenue security, especially in light of rising operational costs and increasing competition from global T20 leagues.

Hyderabad Franchise (7th Team): The FKS Group, owned by Fawad Sarwar, won the bid for Rs1.75 billion and has announced Hyderabad as its home city. The company has interests in aviation and healthcare, with previous business operations that extend beyond Pakistan’s borders, underlining the global investor interest in PSL properties.

Sialkot Franchise (8th Team): OZ Developers, led by Hamza Majeed, offered Rs1.85 billion to secure the eighth franchise. The company’s investment signals strong confidence in expanding the PSL’s market into different regional hubs.

The scale of the bids placed in Islamabad highlights how far the PSL has travelled since its inception. When the league’s original six teams were sold in 2015, franchise valuations were modest by today’s standards. The Karachi Kings, then the most expensive franchise, were sold for approximately Rs26 crore per year, a figure that represented the ceiling of investor confidence at the time.

At that stage, the PSL was an untested product, staging its matches abroad due to security concerns and operating without a proven broadcast or sponsorship base. A decade later, the league now commands franchise fees nearly seven times higher than its initial peak valuation, underlining its commercial maturation.

The expansion auction also confirms a broader shift in how the PSL is perceived — no longer as a short-term sporting gamble, but as a long-term business asset capable of delivering consistent returns through media rights, sponsorship deals, ticketing, and digital engagement.

Following the auction, updated figures revealed the current annual franchise fee structure across the PSL:

PSL franchise fees per year (PKR crore):

• 185 — Sialkot

• 175 — Hyderabad

• 67 — Lahore

• 64 — Karachi

• 49 — Peshawar

• 48 — Islamabad

• 34 — Quetta

• TBC — Multan

Based on the confirmed figures, the PSL is now generating approximately Rs6.22 billion per year in franchise fees alone — equivalent to around USD 22.2 million. With the expected resale of the Multan franchise, PCB projections suggest the annual total could rise to Rs8 billion, significantly strengthening the league’s revenue base.

Officials believe this financial cushion will allow the board to reinvest more aggressively in player payments, production quality, grassroots cricket, and operational infrastructure, all of which are essential for sustaining the league’s competitive edge.

The inclusion of Sialkot and Hyderabad also reflects a deliberate effort by the PCB to broaden the PSL’s regional footprint. While major metropolitan centres have traditionally dominated franchise ownership and fan engagement, the addition of teams from new markets is expected to deepen local