Hyderabad and Sialkot Join PSL as Newest Teams with Record-Breaking Bids

Hyderabad and Sialkot will enter the Pakistan Super League (PSL) as the seventh and eighth teams from this season onwards. The auction, which saw bids significantly exceed expectations, was a testament to the growing popularity and financial potential of the league.

After a fierce bidding war, FKS, an aviation and healthcare conglomerate based in the US, and OZ Developers, a real estate consortium, emerged as the winners. FKS, led by CEO Fawad Sarwar, secured Hyderabad for PKR 1.75 billion (USD 6.2 million), while OZ Developers won the rights to Sialkot with a bid of PKR 1.85 billion (USD 6.55 million). These bids are comfortably the highest franchise fees in PSL history.

The bidding for the first team began with a base price of PKR 1.1 billion, which is the fee the franchise pays to the Pakistan Cricket Board (PCB) annually for the right to operate the franchise for ten years. However, the numbers quickly escalated when FKS put in a bid for PKR 1.4 billion. They had just raised the previous team by PKR 15 crore, but bidders were only required to raise by PKR 1 crore.

From thereon, FKS got involved in a bidding war with i2c, a financial technology company. While i2c gently outbid FKS, the latter made significant jumps, raising the stakes to PKR 1.54 billion, PKR 1.68 billion, and finally PKR 1.75 billion, securing them the team. This bid of USD 6.2 million, while technically cheaper than what the Multan Sultans were picked up for by the Tareen Group in 2018, is significantly higher due to the current exchange rate. FKS has ensured they will pay the highest annual fee for a PSL franchise by far.

The fee for the Hyderabad team is in a different league compared to the existing PSL sides. The highest fee for one of the other five teams is paid by Lahore Qalandars, at a relatively modest PKR 670 million. Hyderabad's annual franchise fee will thus be almost three times higher than Qalandars' or the equivalent of the fees for Lahore, Karachi, and Peshawar combined.

Fawad Sarwar, CEO of FKS, expressed his excitement at the press conference following the auction. “I still can't believe [we're owners of a PSL team],” he said. “This is a childhood dream. We all started playing street cricket and backyard cricket, practicing in front of the mirror, trying to be the next big thing. I'm very proud, and I'd like to thank everyone who put us in a position to come where we are today.”

Buoyed by the high price of the first team, the base price for the second side was set at PKR 1.7 billion, a significant increase of PKR 600 million from the base price for the first side. Given that only i2c had shown interest in reaching such high numbers, the auction for the second team involved fewer teams and the price increased only incrementally.

The high bids seemed to catch some of the approved parties by surprise. Telecommunications company Jazz and Inverex Group, a leading player in the solar energy sector, were considered among the favorites to win. However, neither bid during the auction, with auctioneer Wasim Akram at one point asking Jazz, “balance khatam ho gya?” (Have you run out of phone credit?)

OZ Group, a real estate consortium based in Australia, headed by CEO Hamza Majeed, proved the major challenger to i2c. They eventually outbid i2c when they went up to PKR 1.85 billion, making them, and Sialkot, the most expensive side in PSL history. The retained franchises are valued between PKR 370 million and PKR 670 million (USD 1.2 to USD 2.4 million).

Hamza Majeed, the OZ Group CEO, expressed his gratitude and excitement. “God gave us the chance to be successful,” he said. “As an overseas Pakistani, it's everyone's dream to do something for Pakistan. Cricket runs in our blood. I'm looking forward to this PSL. Get ready, Sialkot. Sialkot had its own airport, its own airline. Now it's got its cricket team. The Sialkot sports industry will be elevated by our PSL team, and we'd love to win this title in PSL XI.”

PCB chairman Mohsin Naqvi congratulated the two teams, stating that the new owners are not just guardians of their franchises but of Pakistan cricket as a whole.

At least one more side will be sold next year. The PCB will run the Multan Sultans for the upcoming season before putting them up for sale. Their previous owner, Ali Tareen, was an approved bidder for this auction but backed out at the last minute, announcing he would not be attending. He declared his intention to try and purchase the Multan side when it comes up for sale.

The 11th edition of the PSL will take place from March 26 to May 3, promising more thrilling cricket and exciting developments for the league.