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CSK trigger new controversy: Owners value team at just Rs 5 lakh!


Mangalore Today News Network

New Delhi, Apr 24, 2015: In a fresh controversy, the Indian Premier League franchise Chennai Super Kings have now declared their team’s value at Rs 5 lakh, according to reports.


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The Mahendra Singh Dhoni-led franchise was transferred to a subsidiary called Chennai Super Kings Limited in February for just Rs 5 lakh.

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.

According to a report published in a leading English daily, at a meeting that took place on Monday, the new IPL governing council that included Jyotiraditya Scindia as a special invitee, raised concerns at the amount of money the team was valued at.

Scindia was in fact the first to raise the issue saying that it was not possible for CSK to be valued at Rs 5 lakh when India Cements was paying Rs 40 crore annual franchise fee to BCCI.

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.

Meanwhile, the BCCI’s Working Committee during its meeting in Kolkata on April 26 will discuss the entire matter.

"There are lot of grey areas in the valuation of CSK. The matter will certainly come up for discussion at the Working Committee meeting in Kolkata on April 26. We will get clearer picture about it after WC meeting," an IPL governing council member told PTI today.

Subsequently, IPL COO Sundar Raman was asked a few questions by a few GC members about the "weird valuation" of the de-merger as they were paying an annual franchise fee of Rs 40 crore and also spent annually around Rs 60 plus crore as players’ remuneration.

 

Courtesy: Ndtv


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