Chennai Super Kings (CSK), an Indian Premier League (IPL) franchise, has formed a subsidiary to nurture cricketing talent and also diversify its income stream beyond the domestic T20 cricket league.
Called Superking Ventures Private Limited (SVPL), the unit was incorporated on February 15, 2022. K.S. Viswanathan, who is the CEO of CSK, will also head SVPL.
CSK’s cricket coaching centres in Chennai and Salem — called Super Kings Academy — now come under the subsidiary, said Viswanathan. The franchise’s talent hunt project would also be brought under SVPL, he added.
The subsidiary could be the fulcrum for all of CSK’s new initiatives. It, however, will not house CSK’s new high-performance centre that is coming up at Navalur near Chennai. The training facility will also have a sports complex and a cricket ground for Chennai Super Kings to have their pre-match practice sessions.
Diversifying income
Earlier, Viswanathan had also said that CSK may go beyond cricket and get into other franchise sports. While IPL is the largest franchise in Indian domestic sport, football, volleyball, kabaddi, badminton and so on have their own leagues.
CSK’s management is keen that the company gains critical mass by diversifying into an array of sports-related activities that would fetch a “steady stream of consistent income,” said sources. The Cricket Academy and the High Performance Centre are primarily aimed at ensuring a steady income flow, they added.
CSK reported a net profit of Rs 32.12 crore for the year ended March 2022, a drop from Rs 40.26 crore in the previous year. Revenue rose to Rs 349.14 crore from Rs 253.69 crore a year ago.
The expenses for the year under review were higher consequent to the (2021) tournament being held in two stages and with the second stage taking place overseas. Revenue for the year under review was also higher due to the team winning the title, the company said in its annual report.
“We can’t ignore the financial numbers. That is why we are going into other areas,” Viswanathan had earlier told this correspondent.
To conserve resources, the company chose not to declare a dividend for the year ended March 2022. It also chose not to transfer any amount to its reserves for the year. CSK has won a licence to participate in the Cricket South Africa league in Johannesburg. The first edition of the tournament is likely to take place early next year.
Women’s IPL
Asked if CSK would bid for a franchise now that the Board of Control for Cricket in India (BCCI) has announced its intention to launch an IPL for women, Viswanathan said the board had not yet given out any details and had not floated any tender.
“Also, we don’t know yet anything from BCCI on the franchise centres for the proposed women's IPL,’’ he added.
On Friday, December 23, 2022, CSK, along with other IPL teams, will be participating in the player auction for the men’s T20 tournament. It has Rs 20.45 crore left from its purse of Rs 95 crore allowed for the auction.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
