The Indian Premier League (IPL) has been hit by yet another big controversy as it has been revealed that the valuation of Chennai Super Kings (CSK) has just been valued at just Rs. 5 lakh by its owner India Cements.
It may sound preposterous but that’s the amount the two-time IPL champions were sold by India Cements to a subsidiary in February this year. Interestingly though, the IPL governing council has refused to accept this valuation and has nit given a formal consent for the sale of the team. As per the rules of the Board of Control for Cricket in India (BCCI), 5% of the sale price of every IPL team must be given to the board and if we go by this valuation, the Board got just Rs. 25,000 from the sale of CSK.
Meanwhile, the new IPL governing council is not happy with the valuation and it has been learnt that no one from the old governing council, which determined the present valuation of the Chennai franchise, had expressed objection that time. It was only after the new council took charge under the directions of the SC that the issue was red-flagged in a meeting on April 20.
The minutes of the old council’s meeting, a copy of which is in possession of the Headlines Today, showed how everyone toed a certain line. The owners’ valuation comes even as a US-based consultancy had valued the team at over Rs. 450 crore last year.