In yet another major controversy to strike the Indian Premier League, owners of Chennai Super Kings have declared their team’s value as Rs. 5 Lakh. The two-time IPL winning team was transferred to a subsidiary called Chennai Super Kings Limited in February for Rs 5 Lakh.
The new IPL governing council refused to accept this valuation and did not approve of the transaction. Interestingly, the previous IPL council — headed by then CSK owner N Srinivasan — did not find any issues with the ridiculous price.
According to reports, Jyothiraditya Scindia, a special invitee present in the meeting, was the first person to raise the issue, insisting that it was impossible to value the franchise at such a low monetary figure.
As per regulations, the BCCI receives a 5 per cent cut of the value quoted by the owners of the franchise — which would translate into a paltry sum of Rs 25,000 in this case.
According to an independent evaluation conducted by American Appraisal, the heavyweight franchise is estimated to possess a brand value of Rs 400 crores (approx.).