The Pakistan Cricket Board (PCB) announced on Saturday that the agreement which gave franchise rights of Multan Sultans PSL team to the Schon Group has been terminated.

A joint statement issued by the PCB and Schon Properties Broker LLC said all rights in respect of the sixth Pakistan Super League (PSL) team have reverted back to the board as a result of the agreement's termination.

"The termination was brought about due to the former franchisee’s inability to meet its financial obligations under the agreement," the statement revealed.

Dubai-based Schon Group had acquired the Multan franchise for an eight-year contract worth $5.2 million (per annum) in a bid held last year, surpassing Karachi Kings as the most expensive franchise.

The PCB statement confirms that the fourth edition of PSL will go ahead as planned with six teams and the same number of matches.

"The board shall take complete responsibility of all player and coach contracts," it said, adding that pending further updates, the team will be referred to as “The Sixth Team” of PSL.

The team selection for the Sixth Team at the player draft scheduled for November 20 will be done by the PCB itself, according to the statement.

A public tender process will then be started to grant repackaged rights of the team, the board has stated.

"The rights holder would have the option of choosing the sixth franchise city and name," said PCB.

Asher Schon of the Schon Group was quoted as saying in the statement: “It has been a privilege being a PSL team owner over the past year. I am proud of the support Schon has always extended to Pakistan cricket and current affairs notwithstanding, will continue to passionately support it.”

PCB Chairman Ehsan Mani said the dissolution of the agreement was unfortunate, but that it was necessary that the contract obligations are abided by.

“While this is an unfortunate turn of events, we have to ensure strict adherence to contractual obligations for the well-being of PSL. We wish Schon Group well with their future endeavours,” Mani was quoted as saying.

“I want to reassure our partners... that the Pakistan Super League will take place as planned," he added.

The fourth season of the PSL will commence in the UAE on February 14, 2019.