August 12, 2023 (MLN): Petrodollars are sniffing investment opportunities globally. The country's domestic expertise is playing a key role here. In the world's 6th populous country, cricket fever is yet to rescind and meet a fate similar to hockey's.
The entertainment industry if coupled with sports can offer a gem on ingredients for monetization. Successful examples of IPL leading to the formation of PSL are a testament to innovative business models. Instead of looking at industrial options, global investors may tap into the services sector.
With increased digitization, smartphone streaming, new stadiums, training facilities, increased data analytics, shortened 10 overs matches, celebrity endorsement, smart advertisement & equity incentives for players, the sports industry offers new ways of growth.
Last year PSL earned $20 million in revenues considered peanuts compared to IPL's gargantuan $1.2 to $3 billion revenues. Pakistan has always been a catch-up story. With foreign capital, increased competition, better law and order, and marketing avenues this wager is worth betting on. Aramco is already advertising on global levels several cricket platforms.
PSL franchising opportunities can offer a win-win to both investors in the form of a bigger addressable market, no fiscal subsidy, tax revenues for Pakistan, the ability to lure foreign players, and increased diplomatic outreach.
Pakistan too should put such small gains up for foreign investors instead of only making headlines with a minimum billion-dollar ticket size. Real economic gains lie with investors taking market risks without over-protection. Cricket obsession can surely be monetized to develop an industry of its own.
The author is an independent economic analyst and writes on Twitter and Linkedin.
