Open Letter to PCB..!

Posted by Syed Nayyar Uddin on July 26, 2017 in Cricket, My Views, Pakistan, Sports |

All the members of the BOG PCB.

Dear Sirs,

As reported in the media that the last and final meeting of the current BOG of the PCB is scheduled to be held on Friday, 28 July, 2017 at Lahore.

In this regard, your kind attention is invited to the following extremely important unfinished agenda of your tenure.

1. The PSL management paid ENTIRE income of PSL-1 to the five franchises (about $4.5 million) from the following three income sources clubbed as pool money.

1. Gate money.
2. Sponsorship.
3. Media rights.

Now, the question is, if at all this whole pool money amount of about $4.5 million or about Rs.45 crore
was to be divided among the all stake holders, why PCB was NOT considered as one of the stake holder, and why only 5 franchises were considered the stake holders?Whereas, originally PCB contributed $5.0 million, as seed money; and franchises, individually, on an average, just contributed only $1.86 million to start the PSL project. The total reported amount of five franchises collected by the PSL was $9.3 million or Rs.93 crore.

Why PCB was given only Rs.4 crore as pre tax profit; and PCB thrown out and left out from its major share of income, from the pool money of about Rs.45 crore?

Here, it is extremely important repeat, extremely important that how PCB’s ORIGINAL seed money share ($5.0 million) which was 53.763%, was manipulatively mentioned as VERY LITTLE,(to justify entire or 100% pool money payment to the franchises), at the website of the PCB quoted as below:

Quote. “PCB invested very little as seed money in the project while the Franchisees invested $9.3m in the form of franchise fee to PCB.” Unquote.

2. In addition to the above payment mentioned at # 1, PCB paid $2.2 million or about Rs.22 crore (without stipulating in the agreement of the franchises), because on PCB’s website

Link..http://www.pcb.com.pk/faqs-pakistan-super-league-pvt-ltd.html

it is stated that expenses paid to the franchises AS PLEDGED DURING MARKETING PRESENTATIONS.

Here, the following two extremely serious financial and Audit violations were committed in payment of $2.2 million or about Rs.22 crore to the five franchises:

a). Since payment of such a huge amount was not MENTIONED in the franchise agreement, the release of such payment was highly irregular, unlawful and illegal.

The facts of highly irregular, unlawful and illegal payments from the profits of PCB can be verified from the following statement, published by the PCB at its website (link provided above) quoted as below:

Quote. “PCB reimbursed them to the tune of $2.2m out of its own profits in order to reduce their losses as pledged during marketing presentations before the process of sale of franchise rights.” Unquote.

b). The release of the above mentioned payment of $2.2 million or about Rs.22 crore from the profits of the PCB to the five franchises, becomes even more gravely irregular, illegal and unlawful act, because NO audit of the franchises was conducted by the PCB/PSL authorities, to verify the genuineness of the expenses of the franchises.

In view of the above details of about Rs.67 crores loss caused to the PCB, the honourable members must demand satisfactory answers from the concerned PCB/PSL officials/PCB’s Audit Committee members/External and Internal Auditors of the PCB; and also these Audit Reports and specific answers to the above questions must be brought to the notice of the public, through media and posted on the website of the PCB, as per transparent and good management practices.

Last but not the least, the nation also demands the answers of the following questions from the honourable members of BOG of the PCB.

1. Why Mr. Mr. Najam Sethi did not resign on the following issues.

a). When recently ICC reverted back from the Big3 formula, which was so vehemently supported/voted by Mr.Najam Sethi, despite severe opposition from the Pakistani people, which considered it a big insult and humiliation for Pakistan, to vote in the ICC, for the Indian hegemony and toeing behind India.

b). When, even after voting for the Indian plan of Big3 in the ICC, PCB failed to get that amount ($150 million) of increased share from the ICC’s revenue, which Mr. Najam Sethi is on record to have very boldly informed the nation that the PCB has been elevated in the ICC as Big4; and now instead of $100 million it will get $150 million. What actually happened that as reported by the media, PCB got even less payment from the ICC 2015 ODI World Cup, than the 2011 ODI World Cup.

2. Mr. Najam Sethi also owe answers to the nation (before getting elevation as chairman PCB) on the following accounts:

a). When he had CONCRETE prior information about the spot fixing in ensuing PSL-2 matches, why he did not took preemptive action to nip the evil in bud?
His video statement that he decided that it was spot fixing and not match fixing, should be considered a tacit approval, to let our players defame and destroy the image and reputation of Pakistan, at an international stage?

b). Why PSL/PCB has not taken action against those franchise managements whose maximum number of players have been named in the spot fixing?

c). What is the reason that about
10-12 Pakistani players names have cropped up in the spot fixing scandal of PSL-2, but 100% foreign players are clean and out of this issue, despite the fact that Mr. Najam Sethi had prior concrete information of spot fixing?

d). Does Mr. Najam Sethi has any idea about how much this scandal has defamed Pakistan and damaged our national prestige and image?
Then why FIA was stopped to probe the matter of national interest, on the pretext of ICC’s objection, but at the same time the PCB did not hesitate taking help from the crime agency of the UK?

e). It it a fact that the final match of PSL-2 held at Lahore, resulted in gate money of about Rs.18 crore; and the combined gate money of 24 PSL-1 matches in 2016, was Rs.11 crore.

f) Will the honourable members of the BOG of the PCB, liked to be informed, why they were asked to give approval for the separation of PSL from PCB, in shape of a private company, when the country rules did not permit such an act, and on what grounds the said idea has been now shelved by the PCB?

Best Regards,

Syed Nayyar Uddin Ahmad

PS:
Following details copied from the PCB’s website:

PCB website link:-

Link..http://www.pcb.com.pk/faqs-pakistan-super-league-pvt-ltd.html
Q: Did the PCB make a loss or profit from the first edition of PSL?

Ans: PCB invested very little as seed money in the project while the Franchisees invested $9.3m in the form of franchise fee to PCB. Upon conclusion of all PSL accounts, PCB earned $2.6m profit before tax, while the Franchisees, as expected, showed losses on their initial investment. Being cognizant of this fact, PCB reimbursed them to the tune of $2.2m out of its own profits in order to reduce their losses as pledged during marketing presentations before the process of sale of franchise rights. But the franchisees benefited from a significant rise in the value of their assets, called capital gain, by over 100% and they were able to cash in on this dimension by getting major brand name sponsors and media houses on board. It may be noted that 6 out of 8 IPL teams, for example, even after 8 seasons, are still operating under heavy losses. International Sports Management company Repucom recently briefed the PSL franchisees on how much the value of their asset has risen, which has raised the prospect of auctioning more teams at above the values obtained from the earlier round of auctions for the five teams.

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