Seems like Chennai Super Kings, one of the most successful teams of the Indian Premier League loves to invite controversy!
Either they have really stupid auditors or they are simply too haughty to come up with this piece of crap!
CSK, as they are popularly called, have estimated the net worth of their team at 5lakhs after its recent sale to a sister concern!
A roadside noodle vendor makes more profit than that! 😛
Here’s All The Spice!
IPL team CSK has invited fresh new controversy into their kitty after endless drama over the past year over spot-fixing allegations, the exit of their boss N. Srinivasan from the helm of the BCCI, the legal implications Gurunath Meiyyapan (Srinivasan’s son-in-law) is facing for allegedly leaking confidential information to bookies and what not! And now this…
- The new IPL governing council has severely objected to the amount that the team has valued for itself – 5lakhs! The valuation was done by the team’s owners, Chennai Super Kings Ltd.
- Chennai Super Kings Ltd., is a subsidiary that was formed by N. Srinivasan’s company India Cements after the Supreme Court cited a glaring conflict of interest for the ex-BCCI chief.
- He was told to either run the team or own it via India Cements according to the IPL rules.
- The new governing council of the IPL had invited MP Jyotiraditya Scindia as a special invitee who was the first to raise the issue about the valuation of the team.
- He was shocked at how a team owned by Indian Cements can be valued at a mere 5 lakh rupees when India Cements pays 40 crore as annual franchise fee to the BCCI! 😛
- Why this is shocking is because a US-based consultancy service recently valued the team at Rs. 450 crore in the year 2014! 😀
- When the Supreme Court brought forward charges of “conflict of interest” against Mr. Srinivasan in 2014, he was denied contest for the BCCI presidential elections.
- Acting on the court order to choose only point of interest, India Cements, who were the original owners of the CSK, transferred all their shares to the newly formed subsidiary company, Chennai Super Kings Cricket Ltd.
- The India Cements Board headed by Srinivasan also decided that the subsidiary will be owned by the existing shareholders of India Cements on a proportionate basis of which 70 per cent of the India Cements shares are held by the public, the promoters hold only 28 per cent of it and N Srinivasan himself holds 0.14 per cent of the total shares.
- The IPL governing council has not yet ratified the transfer of shares since as per the rules of the BCCI, only 5 per cent of the sale price of any IPL team should be given to the BCCI, which has not been done yet. If this is done, BCCI should itself get Rs. 25,000 out of the current valuation since CSK claims it was sold to the new subsidiary for only 5 lakh rupees! 😛
The council headed by MP Rajeev Shukla has not accepted this hilarious valuation and has rejected it outright simply because it is too low for a team that takes part in the costliest league match sport India has ever witnessed!
We hope that CSK comes to its senses and values its team properly, after all rules are rules. The BCCI should get what it deserves – they are the people running the whole show and managing all the events!
You do the math and figure out if the team is actually valued at Rs. 450crore, how much the BCCI should get as its franchise management fees?
Post your calculation and views in the comments section below!