Kolkata: It seems there is more trouble coming for the embattled owners of Chennai Super Kings (CSK) following reports of a possible undervaluation of the Indian Premier League franchise. According to reports, the Enforcement Directorate (ED) has sought details about this controversy.
Widespread media reports of the Chennai-based franchise being valued at a ludicrous sum of Rs 5 lakh have recently surfaced. Possibly taking cognisance of the huge interest the case generates, India’s foremost law enforcement agency to fight economic crimes will has reportedly claimed to conduct a discreet examination, which will involve checking of documentation and files.
The Mahendra Singh Dhoni-led franchise was transferred to a subsidiary called Chennai Super Kings Limited in February for just Rs 5 lakh. The 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.
Further reports claimed that, 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, reports claimed.
The Congress MP Guna, Madhya Pradesh was the first to raise the issue saying that it was not possible for a franchise like 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 Indian cricket board receives a 5 per cent cut of the value quoted by the owners of IPL franchise — which would translate into a meagre sum of Rs 25,000, it the reports of CSK being valued Rs 5 lakh is correct.
In a recent American Appraisal (a consulting firm) report, the franchise was valued at USD 67m behind Mumbai Indians at USD 72m and Kolkata Knight Riders at USD 69m. One year back, CSK was valued at USD 72m but the infamous spot-fixing case have taken a toll on the brand value.
CSK are the most successful team in the IPL and have won the title twice in succession (2010 and 2011). In 2010, they also won the Champions League Twenty20.