Karachi: The Pakistan Cricket Board (PCB) terminated its agreement with Pakistan Super League (PSL) franchise, Multan Sultans over the payment issues on Saturday, PTI reports.

Multan Sultans made its debut in the third edition of PSL earlier this year with a bevy of stars which includes captain Shoaib Malik and former Pakistan skipper Wasim Akram and Australian Tom Moody on its team management.

The PCB said in a statement late on Saturday night that it has terminated the franchise agreement with Schon Properties Broker LLC, the owner of Multan Sultans.

"As a result of this termination, all rights in respect of the team have now reverted back to PCB," the statement said.

The development will come as a blow to the PSL as since its launch in 2016 the league has enjoyed great credibility in financial matters including payments to players and otherwise.

The PCB said the termination was brought about due to the franchise's inability to meet its financial obligations under the agreement.

Schon Properties had purchased the franchise rights of the Multan team for a record USD 52 million in 2017.

The PCB, however, made it clear 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. Pending further updates, the team shall be referred to as 'The Sixth Team' of PSL, the statement said.

The PCB also said that the team selection for the sixth team would take place as planned on November 20 in the players draft and PCB would do it.

"PCB will thereafter enter into a public tender process --details will be made public soon -- to grant repackaged rights of the sixth team. The rights holder would have the option of choosing the sixth franchise city and name," the statement said.

Schon Properties failed to submit the bank guarantee for the $ 52 million bid amount despite several reminders from the PCB.