IPL is the world's strongest and richest cricket franchise. The largest team of this cricket franchise is without doubt CSK i.e. Chennai Super Kings. Who has dominated the last 17 years, which very few teams can claim. But separate from the cricket stadium and another area that CSK is trying to capture quietly and that is - the unlisted market. In the past, CSK has also strengthened its position in the unlisted market. When the IPL Governing Council ordered all franchise to be made separate units. In 2015, CSK was separated from India Cements. Since then, CSK has continuously raised its valuation and has also been a good popularity in the un--listed market. This is not a coincidence, but there is a strong financial status along with the loyalty of the people towards the brand. Let's discuss this in detail.

Financial is very strong

Since coming in 2008, CSK has made it to the playoffs 12 times in 14 seasons, has reached the finals 10 times and has won five titles. Which has historically increased the interest of investors. Not only this, solid financial growth has also been seen in the brand. Talking about financial strength, in FY 2024, the franchise has recorded a PAT of 201 crore after tax, which was about 14 crore rupees last year. This means that in the same year, Pat saw a growth of 1,365 percent. The main reason for this increase is the earnings due to the central pool. Which includes the Broadcast Rights Central Sponsorship Revenue.

Earning from Broadcast Rights

According to the fresh annual report of CSK, Central Pool Income increased from Rs 191 crore to Rs 150 per cent to Rs 479 crore in FY23 in FY 23. There are also some other factor, which shaped CSK's financial strength. Recently, the Broadcast Rights Deal (2023-27), which was sold three times higher than the previous bicycle, has greatly increased the profitability of the IPL team, which has made franchisees like CSK even more attractive to investors.

In the last few years, the team has also achieved important sponsorship deal, taking advantage of its strong brand prince and spreading loyalty. Brands like Muthoot Group, Gulf Oil and Nippon Paint have partnered with CSK, which contributed to its financial strength. The iconic yellow jersey of the franchise is one of the most identified and most demanded merchandise items in the IPL. The strong fan base of the team, known as the "Yellow Army", increases the sales of merchandise and also enhances revenue.

Unlisted Market King?

In the unlisted market, CSK share has increased from Rs 31 to Rs 190-195 in 2019, which has increased by 529 percent (6 times) during this period. In 2022, CSK's unlisted stock price reached Life Time High of Rs 223. The demand for CSK shares usually increases during the IPL season, especially when the team performs well. As the enthusiasm increases, prices rise and fall after the tournament ends. The credit for the popularity of the brand goes to a large extent to its continuous performance and MS Dhoni's leadership. Even though, Dhoni is no longer a captain, but the team is built around his presence.

LIC earned big money

CSK owner India Cements separated the franchise in 2014 and made a separate unit named Chennai Super Kings Cricket Limited (CSKCL). Subsequently, the shareholders of India Cements received CSKCL shares in a 1: 1 ratio. At that time, LIC had about 1.8 crore shares of India Cements, which was equal to 6.04 per cent stake. Due to which CSK gave a return of about 6 times to the country's largest insurance company. The separation of CSK from India Cements allowed LIC to maintain a successful IPL franchise, which gave him the benefit of its growth and popularity. As the CSK is constantly moving forward in the IPL, LIC's investment remains a strategic step towards diversity in its portfolio. Currently, LIC has a 4 per cent stake in CSK.