Reports | CSK’s valuation falls by 200 crore amidst IPL uncertainty

The ongoing Covid-19 crisis has already affected economies and economic growth by a considerable margin, and it is expected to do further damage should the situation remain the same in the months to come. With the future of the thirteenth edition of the Indian Premier League (IPL) bleak, it is no secret that the BCCI, franchises and stakeholders and bracing themselves to incur massive financial losses. However, one entity that already seems to be suffering is Chennai Super Kings (CSK). The franchise, which is the second-most popular club in the competition behind Mumbai Indians, is said to have dropped in valuation to Rs 800 crore, with it being valued at Rs 1000 crore not so long ago.

According to an Economic Times report, unlisted CSK’s shares are being traded at Rs 24 each at a market value of Rs 800 crore in the informal market. The franchise’s valuation is said to have taken a 20% tumble in the last few months, and the reason for the same is believed to be the uncertain future of IPL 2020.

“The last trades in CSK have happened at Rs 24, much lesser than the Rs 30 that happened a few months ago. Obviously, this is the impact of the likely cancellation of IPL-2020 on the team’s valuations,” an investment banker in the know told Economic Times.

According to ET, CSK is also expected to become India’s first listed cricketing entity, and the valuation of the club is said to have jumped 2x (from 450 crore to close to 1000 crore) since the start of 2018. The club, however, is still second to Mumbai Indians when it comes to valuation, according to the 2019 IPL brand valuation conducted by Duff & Phelps.