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CSK says its worth Rs.5lakh

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Updated: 00:00 GMT, Jan 1, 1970 | Published: 08:10 GMT, Apr 24, 2015 |
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In a fresh controversy, Chennai Super Kings owners have valued their team at Rs 5 lakh only. According to reports, the IPL governing council, headed by Rajeev Shukla has not accepted this valuation. The issue is expected to be discussed during Sunday’s BCCI working committee meeting.

Chennai Super Kings and their owners have been under the scanner ever since the 2013 IPL match-fixing and betting scandal broke. Gurunath Meiyappan, a team owner and the son-in-law of former Board chief N. Srinivasan, has been indicted by a Supreme Court panel for betting and sharing team information. A US company valued CSK to over Rs 450 crore last season.

In January, the Supreme Court brought charges of “conflict of interest” against Srinivasan. The charges denied Srinivasan from contesting the BCCI presidential elections. Acting on the court order, India Cements, the original owners of the CSK, transferred shares to Chennai Super Kings Cricket Ltd.

India Cements Board decided that the subsidiary will be owned by existing shareholders on a proportionate basis. While 70 per cent of India Cements shares are held by public, promoters hold 28 per cent and N Srinivasan holds 0.14 per cent of the shares.

Reports suggest that the IPL governing council is not happy with CSK’s new value and has not ratified the transfer of shares. As per the BCCI rules, 5 per cent of the sale price of any team must be given to the BCCI. Effectively, BCCI will get Rs 25,000 only.

CSK and their owners are still under the Supreme Court scanner. The new ‘value’ will generate more controversy for sure.