India Cements Ltd, the owner of the Indian Premier League Cricket franchise Chennai SuperKings, plans to demerge the division into a wholly owned subsidiary of the company. India Cements will hold a meeting with its board of directors on September 26th, 2014.
“Our Company presently owns Chennai Super Kings (CSK) – BCCI-IPL Franchise 20/20 Cricket Tournament Team. We propose to demerge the said CSK Division to a wholly-owned subsidiary of our Company. Accordingly, we have included this proposal for consideration of the Board of Directors of our Company at the ensuing meeting on September 26, 2014.”
According to its FY13 Annual Report, India Cements has to pay $91 million to the Board of Control for Cricket in India (BCCI) over 10 years, as a fee for the right to operate the franchise. For this, the BCCI shares income from its sale of media rights and sponsorship, with all franchises. Chennai SuperKings also makes money via gate collections, team sponsorships, uniform sponsors etc, and costs include “remuneration to the players, travelling and accommodation expenses, advertisements, promotions etc”.
The FY13 annual report does not have information on Chennai SuperKings’ financials, and hiving the business, which is currently a division of CSK, will mean that, at least annually, there will be information on India Cements. A Business Standard report states that “CSK has clocked a revenue of Rs 166 crore in 2013-14.” The FY14 annual report for India Cements hasn’t been published yet.
Also, do read this excellent article on N Srinivasan and India Cements’ involvement with Cricket in The Caravan.