The Pakistan Super League (PSL) just expanded to eight teams, and if you were hoping for a “Silicon Valley of Pakistan” moment where a unicorn startup buys a franchise, you need to wake up.
The auction for the Hyderabad and Sialkot franchises concluded in Islamabad yesterday, shattering all valuation records. But the real story isn’t who won… It’s who lost. The tech sector, represented by giants like Jazz and heavy hitters like i2c, got completely muscled out by the two forces that actually run Pakistan’s economy:
- Real Estate
- Foreign Remittance Power
Here is the ruthless breakdown of why the Tech sector went home empty-handed.
The PSL Scoreboard: Brick & Mortar (2 – 0) Tech
Let’s look at the numbers. The valuations are astronomical compared to the existing ecosystem.
- Team 7 (Hyderabad): Sold for Rs. 1.75 Billion to FKS Group (US-based Aviation/Healthcare).
- Team 8 (Sialkot): Sold for Rs. 1.85 Billion to OZ Developers (Real Estate).
To put this in perspective, Lahore Qalandars pays roughly Rs. 670 million annually. The new Sialkot franchise is paying nearly three times that amount.
The New Power Players: Who Just Bought the New PSL Teams?
You need to understand that these weren’t impulse buys. Both owners have specific portfolios that allow for this kind of aggressive spending… portfolios that the local tech sector simply cannot match.
1. The Dollar-Backed Titan: FKS Group
- The Owner: Fawad Sarwar (President).
- The Business Model: Diversified Conglomerate (US-based).
FKS Group didn’t win this because they know cricket… though they do own the Chicago Kingsmen in the US. They won because they earn in USD. Fawad Sarwar, a Hyderabad native now based in the US, runs a massive portfolio including FKS Aviation and ProCare Health. He also manages investment firms like Gilded Investments and Sand2Glass.
This is a classic case of Diaspora Capital bullying local revenue. While local companies like i2c have to worry about the Rupee depreciation, FKS is deploying capital from a US base. For a company dealing in aviation and US healthcare, a $6.2 million franchise fee is a manageable marketing expense, not a company-breaking risk.
2. The Concrete Kings: OZ Developers
- The Owner: Hamza Majeed (Chairman).
- The Business Model: Real Estate & Development.
Headquartered in Lahore but with an operational footprint in Australia, New Zealand, and the UAE, OZ Developers represents the “files and plots” economy of Pakistan. They are known for high-rise developments in Lahore.
Ironically, OZ Developers utilises more “tech” in their business model than some of the actual tech bidders. They are known for a “live construction stream” feature that allows investors to monitor their high-rise projects 24/7. However, don’t get it twisted… Their money comes from concrete, not code. Their ability to drop Rs. 1.85 billion on Sialkot proves that in Pakistan, Real Estate is still the ultimate liquidity king.
The “Balance Khatam” Moment for Telcos
The most embarrassing moment of the night belongs to the Telecom sector. Jazz, a company that practically runs the digital infrastructure of Pakistan, was expected to be a major player.
They didn’t just lose… they froze. During the bidding, when Jazz failed to counter a bid, auctioneer Wasim Akram reportedly cracked the joke of the night:
Balance khatam ho gya? (Did you run out of credit?).
This isn’t just a joke… It’s a market signal. Telcos are burden-heavy giants. They have massive overheads and stagnating ARPUs (Average Revenue Per User). They wanted the branding play of a PSL team to stay relevant, but they couldn’t justify the CAPEX on their balance sheets.
Fintech vs. Real Estate: The Valuation Reality Check
i2c, a major player in the global payment processing space, was the only tech contender that actually tried to fight. They went deep into the bidding war against FKS for the Hyderabad franchise.
But here lies the difference between Tech Money and Real Estate/Conglomerate Money:
- Tech Money (i2c/Walee/Inverex):
Tech companies operate on a P&L (Profit and Loss) basis. Buying a team is a Branding Play. It goes under “Customer Acquisition Cost”. At a certain price point (around Rs. 1.5 billion), the ROI (Return on Investment) stops making sense. The math breaks. - Real Estate Money (OZ Developers):
For a developer building high-rises in Lahore and expanding to Dubai, buying a team isn’t just branding… it’s Legitimacy. OZ Developers just paid Rs. 1.85 billion to own the narrative in Sialkot. They don’t need to sell tickets… they need to sell apartments. The franchise is a loss-leader to move inventory. - Foreign Money (FKS Group):
Fawad Sarwar’s FKS Group is playing with USD. With the dollar conversion, approximately 6.2 million USD is a steal for a sports franchise with this level of viewership. While local tech companies earn in depreciating Rupees, FKS spends in Dollars. It was never a fair fight.
Why Did Tech Want In?
Companies like Walee Technologies (MarTech), VGO Tel, and Inverex Solar were in the mix for one reason, and that’s Visibility.
The PSL is the only “unicorn” media product in Pakistan. For a B2B tech company or a consumer electronics brand, owning a team is the fastest way to become a household name. But as yesterday proved, wanting clout and affording clout are two different things.
The auction proved that while Pakistan’s tech ecosystem is “growing”, the financial muscle still resides with those who build concrete structures and those who earn in dollars abroad.
Faisalabad was ignored. The Tech sector was outbid. And now, Sialkot (the industrial hub) and Hyderabad (via US funding) hold the power.
If a tech CEO wants to own a PSL team, they better hope their Series B funding comes through in dollars… or maybe they should just start building apartment complexes instead.
