Multan Sultans owner threatens legal action over PSL renewal

The Pakistan Super League (PSL) could run into legal complications as one of the existing franchises is threatening to sue the league's management. Ali Khan Tareen, the maverick owner of the Multan Sultans franchise, has openly warned the PSL and the Pakistan Cricket Board that he will have no choice but to initiate legal proceedings against them.

"If this ghosting continues we will have no choice but to take legal action. Which is the absolute last thing we want to do. This entire situation is so unnecessary and could have easily been solved over tea and biscuits. But fragile egos make simple things difficult. Let's hope better sense prevails, but it is not looking likely," Tareen said in a social media post on Wednesday (November 19).

It may be recalled that Tareen was in the eye of a storm for publicly tearing down a PCB notice that sought a public apology from him. He is known to hit out at the the PSL and PCB management for their 'unprofessional' methods of running the league.

The trigger for Tareen's latest salvo is the PCB's apparent refusal to renew his franchise contract, while the agreements with other five teams in the league are reportedly being renewed. "Since the PCB will not communicate with us, here is an update we can share ourselves.

"Over the past month we have sent multiple emails to the PSL management, asking for our valuation and renewal letter (which every other team has already received). But there has been no response. No response to our legal letter, no response to our emails, no response to my letter to the Chairman.

"Even other franchise reps have asked why Multan is not being included in the valuation and renewal process. No response, (sic)," Tareen wrote, adding, "For those asking why this is not being handled behind closed doors, it is simply because the PSL Management refuse to engage with us," Tareen wrote on X (formerly Twitter).

By keeping Tareen, the PCB may be in breach of its franchise agreement with Multan Sultans. Those who are well-versed with PSL functioning say Tareen's existing franchise agreement runs till December 31, 2025 which conversely means the PSL management is contractually bound to share all information relating to the PSL with the owners, including valuations from Ernst & Young (EY) as well as fresh agreement letter.

As the Multan Sultan franchise agreement has neither been suspended nor terminated, the franchise is a compliant franchise. In this background, by not sharing EY reports as well as a fresh offer letter is a breach by the PSL Management. More specifically, the cost of the EY valuation exercise was done through the PSL funds, and Multan Sultans have contributed to this exercise.

In a recent release PCB said that renewal of existing franchises has been finalised. "The PCB has announced the completion of the independent valuation process for the PSL franchises and other commercial assets. Following the conclusion of this exercise, renewal offer letters reflecting the new franchise fees for the next 10 years have been formally shared with all compliant PSL Franchises requesting them to revert with their decision within the stipulated timeline."

The PCB is considering terminating the Multan Sultans' contract with him for breach of PSL code of conduct. The PSL has teams based in Peshawar, Islamabad, Lahore, Quetta and Karachi, besides, of course, Multan. The league has also been considering expanding to eight teams, with Hyderabad, Sialkot, Faisalabad and Rawalpindi among the shortlisted cities.