In a new development, PCB reduced the salary cap for PSL franchises for full squad, Check out the new price Tags

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In a new development, PCB reduced the salary cap for PSL franchises for full squad, Check out the new price Tags

ISLAMABAD - In a new development, Pakistan Cricket Board has reduced the salary cap for PSL franchises for full squad to minimise the losses.

Pakistan Cricket Board has reduced the salary cap for the PSL franchises to assemble a full squad from USD 1.38 million to USD 1.1 million.

PSL franchises have struggled to turn a profit ever since the start of the tournament in 2016. In January this year, the original five - Islamabad United, Karachi Kings, Lahore Qalandars, Peshawar Zalmi and Quetta Gladiators - reported losses of PKR 200 million to 700 million link (USD 1.4 million to USD 5 million approx) after just the first two seasons, ESPNCRICINFO has reported.

The PCB met with representatives from all six teams on Monday and, in addition to bringing down the salary cap, it also exempted them from paying their bank guarantee, a combined value of USD 14.51 million, ahead of the 2020 season.

"We had fruitful discussions with our valued partners and we have found a way forward," said PCB's Chief Executive Wasim Khan. "In the days ahead, our preparations for the HBL PSL 2020 season will continue in full swing, we are committed to staging the entire edition in Pakistan and the franchises are on-board with us."

ESPNcricinfo understands that the change to the salary cap happened after an understanding that a majority of the players who play the PSL participate in other franchise-based T20 leagues for lower wages.

PCB had earlier classified the US$ 1.38 million purse into five categories: Platinum (USD 570,000), Diamond (USD 270,000), Gold (USD 180,000), Silver (USD 140,000), and Emerging (USD 25,000) with provision for an extra USD 175,000 for supplement players.