The professional men’s Twenty20 cricket league was first introduced in India in the form of the Indian Premier League. This tournament was founded by the (BCCI) Board of Control for Cricket in India in the year 2007.
From then on, the tournament has gained a worldwide audience, and several franchises joined too. Among them, Chennai Super Kings were one of the most popular franchises. The team was winning several matches and were tournament champions a few times, but that is not what made this team popular and thriving in the business.
There is a reason why the CSK Unlisted Share Price is at an all-time high even after not winning many tournaments. If you read the rest of the article, you will understand the reason why the CSK share price is always popular.
India Cements bought the Chennai team for $91 million, making it the fourth most expensive team behind Hyderabad, Bangalore, and Mumbai.
The franchise had a 15% drop in revenue at Rs 350 Cr. compared to Rs 410 Cr. for the financial year 2019. This was due to the decrease of earnings from Grant Central Rights from the Board of Control for Cricket in India.
Though the net profit declined, the franchise continued to gain popularity among the audience. Soon, the brand continued to collect more sponsorship income, and the revenue went up 24% to Rs 68 crore.
Income distribution to the players and BCCI improved. The payment to the players increased from 128.6 crores to 130.3 crores. This was the start of the successful journey of the franchise.
Land bought by the franchise
Chennai Super Kings purchased land for Rs 129 Cr. and infrastructure for Rs 11.9 Cr.
The yearly report of CSK’s shareholding pattern is interesting. India Cements owns the franchise and doesn’t categorize any stakeholders as a promoter.
India Cement is still the biggest investor with a 30.08 % ownership of the brand. Sri Saradha Logistics Pvt Ltd and LIC are other shareholders holding more than five percent.
DMart founder and business tycoon Radhakishan Damani hold a 20.4% stake in India Cements, making him a crucial shareholder of CSK. His shares in CSK have grown from 2.39% to 2.94% in 2020.
When you look at the annual report of CSK, you will find that it has granted money for Electoral Bonds. Around Rs 20Cr was spent on Electoral Bonds 3 years ago and zero in the last year.
All these developments have made CSK’s share price increase over the years. However, the team didn’t win the most number of tournaments but had the highest number of winnings than any other team.
The team’s rivalry with Mumbai Indians also made the team famous, and the name MS Dhoni is still a crucial part of the team’s popularity.
The team secured the most wins (approx 100) with the minimum number of losses (63), which puts the team in the top spot in the success chart. People still believe in the captain’s capability and team’s spirit to win many more tournament cups.
The franchise is improving its popularity and success in the tournament. All these will improve its merchandise sales and rating, which affects its share price. As a company and franchise, Chennai Super Kings can be called one of the most successful teams in the Indian Premier League.