Chennai Super Kings
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CHENNAI SUPER KINGS There are several sub-cultures, cultures and religions in India, but over the last four decades, cricket has become the common religion in India. As one banner famously put it, “Cricket is our religion and Sachin is our God”. What Nelson Mandela said about sports in general is apt for cricket in India. He said “Sport has the power to change the world, it has the power to inspire. It has the power to unite people in a way that little else does. It speaks to youth in a language they understand” Founded in 2008 ,the Chennai Super Kings (CSK) are a franchise cricket team based in Chennai, Tamil Nadu, which plays in the Indian Premier League (IPL).CSK’s success story is a classic example of a well-thought-out auction strategy, effective resource management and the unbridled faith and belief that CSK management showed in their leader, M.S. Dhoni. Since their comeback after the ban the franchise has been growing by leaps and bounces both in terms of their winning performance and surging brand valuation COMPANY SNAPSHOT AND KEY HIGHLIGHTS Lifted the IPL title thrice (in 2010, 2011 and 2018), and have the best win percentage among all teams in the IPL (61.28). Played 142 matches & won 90 on them. Hold the records of most appearances in the playoffs (10) & the Final (8) of the IPL. It’s brand value in 2019 is estimated to be around ₹732 crore (roughly $104 million), making them the second-most valuable IPL franchise, after Mumbai Indians India Cements bought the CSK franchise for Rs 364 crore, or $91 million. After its demerger from India Cements (record date: October 9, 2015), 94,000 retail shareholders were allotted CSK shares on a 1:1 ratio. It posted a profit of Rs 111 Cr in FY19 compared to a loss of Rs 51 lacs in FY18 Its EPS( Earning Per Share) for FY19 was Rs 3.6. CSK’s sponsorship revenue is projected at Rs 39.58 crore and is likely to remain constant till FY23. All franchises make an annual fixed income (approx. Rs 250 Cr) from the BCCI which is distributed from broadcasting rights & IPL’s official sponsor. Star India has struck a global media broadcast rights deal with BCCI for Rs. 16,347 Cr from 2018 to 2022. In 2018,JSW Sports, the sports arm of the steel to software conglomerate, acquired 50% stake in GMR Group-owned Delhi franchise of IPL, Delhi Daredevils for Rs 550 Cr(US$80 million). GMR had bought the Delhi franchise in 2008 for $84 million. OTT( Over the Top) sports viewership no longer remains a prospect, but has become an established and fast-growing market, according to the Ernst & Young FICCI Report 2018, when the average time spent on Hotstar watching IPL went up from 30 to 35 minutes for IPL 9 to 40 to 45 minutes for IPL 10. CSK has one of the largest fan base second to only Mumbai Indians, buying its merchandise and its match tickets. New Vertical Advisory Pvt Ltd, 1st Floor, L-29, Connaught Place, Delhi-01 # 9811435236/9810063616 CHENNAI SUPER KINGS MANAGEMENT AND BOARD NAME TYPE OF BOARD MEMBER Sri L.SABARETNAM, Chairman Sri K.S.VISWANATHAN, CEO and Wholetime Director Sri RAKESH SINGH Independent Director Sri R.SRINIVASAN Independent Director Sri B.KALYANASUNDARAM Director NOTABLE SHAREHOLDERS INDUSTRY INSIGHTS The love for cricket has indeed broken several barriers. With the commencement of the second decade of IPL, a lot of dynamics have changed for this sporting event. It is getting closer to achieving the scale that some of the global football leagues like EPL (English Premier league) have achieved. IPL definitely commands a premium and is a first preference for brands to engage New Vertical Advisory Pvt Ltd, 1st Floor, L-29, Connaught Place, Delhi-01 # 9811435236/9810063616 CHENNAI SUPER KINGS From a financial standpoint, as the IPL moves into a more mature and stable phase, franchise owners and investors are likely to focus more acutely on return on investment. Like all major sporting brands across the world, with the usual revenue sources, it is imperative for the franchises to keep engaging the fans outside the pitch to be able to monetize their brand more effectively. IPL teams can reference the popular European Premier League (EPL) clubs that have set a benchmark on monetizing their brands by engaging their billion-plus fan bases across the world using various innovative marketing and brand building techniques. The estimated value of the IPL-Indian Premier League is around Rs 43000 cr and each IPL franchise on an average earns 5% of the BCCI’s annual revenue( Rs 4000 cr) made from broadcasting rights and the title sponsorship New Vertical Advisory Pvt Ltd, 1st Floor, L-29, Connaught Place, Delhi-01 # 9811435236/9810063616 CHENNAI SUPER KINGS FINANCIAL PERFORMANCE OVER LAST 2 YEARS (IN Lacs) New Vertical Advisory Pvt Ltd, 1st Floor, L-29, Connaught Place, Delhi-01 # 9811435236/9810063616 CHENNAI SUPER KINGS CSK’S KEY SOURCES OF INCOME KEY SOURCES OF INCOME REVENUE 1. IPL Title Sponsor 2. IPL’s broadcasting Rights 3. Team Sponsorship(Endorsements 4. IPL Ticket Sales 5. Sale of Merchandise 6. Income from Royalty 7. Prize Money Disclaimer: Investing in unlisted/PRE IPO shares is speculative and carries a high degree of risk. Past performance is not indicative of future results. The document has been prepared for informational purposes only and is not intended to be used as a complete source of information for any particular company. All facts and figures taken from the annual and shareholders report available in the public domain, we don’t take any responsibility for the above numbers. New Vertical Advisory Pvt Ltd, 1st Floor, L-29, Connaught Place, Delhi-01 # 9811435236/9810063616 .