Pakistan Cricket Board (PCB) chairman Ramiz Raja has offered a new financial model to Pakistan Super League (PSL) franchises, a PCB statement said on Monday.

The new model that was presented during the PSL Governing Council meeting on Monday, offered relaxation in payments to all six franchises as part of the Covid-19 relief for the fifth and sixth editions of the PSL.

It also offers an increased share from the Central Pool of Revenue (CRP) from PSL 7 to 20, and a fixation of the dollar rate in local currency to end the uncertainty surrounding annual payments.

The cricket board said that the new profit-sharing model was part of its commitment and resolve to assist and support the franchises so that they can continue to play their crucial role in the growth of cricket in Pakistan.

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Commenting on the development, the PCB chairman said: “Taking into the account legal and contractual framework, the PCB has offered a new financial model to the franchisees with the sole purpose of supporting and resolving their concerns.”

He added that the board expects the franchises to accept this offer so that the focus could be switched on strengthening the PSL as a brand.

In a previous statement, the recently-elected chairman had assured the owners that he understood their challenges and promised to work with them.

“The chairman highlighted and appreciated the franchisees’ contribution in the growth, development, and promotion of Pakistan cricket, and assured the team owners that he remained committed to enhancing and strengthening the HBL PSL brand,” it had added.

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The current profit-sharing model has been a bone of contention for four years between the cricket board and the PSL teams. However, the proposed model seems to end the deadlock.

Under the new model, the PCB keeps 20 percent of the profit and distributes the rest among the franchises, who were happy with it until Multan Sultans were added into the pool in 2018.

The addition of another team in the profit-sharing pool has reduced the amount the franchises were getting before. Hence, they demand a bigger chunk of the revenue.

Another lingering issue is the depreciation of the Pakistani rupee over the past three years. The franchises wanted the US dollar rate to be fixed in local currency to offset the losses since the franchises have to pay their foreign players in dollars.

These demands were first put up before the former PCB chairman Najam Sethi. However, neither Sethi nor his successor Ehsan Mani could resolve the matter.

In September 2020, the franchises had moved to the Lahore High Court (LHC) in this regard. However, both parties later decided to settle the matter out of court.