Chennai : IPL team Chennai Super Kings faces a new controversy after the new IPL governing council objected to the amount at which the team was valued by its owners Chennai Super Kings Ltd, say reports.
Chennai Super Kings Ltd, a subsidiary was formed by N Srinivasan’s India Cements after the Supreme Court cited a conflict of interest for the ex-BCCI chief between running it and owning the IPL team through India Cements.
The 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 approximately.