Understanding The Business Model of Chennai Super Kings In Detail

With the successful ending of the 16th edition of the Indian Premier League(IPL), Chennai Super Kings has emerged as one of the most successful franchises of the IPL. After beating Gujarat Titans in the thriller final over, CSK won its 5th IPL trophy and levelled the record of Mukesh Ambani’s Mumbai Indians. In between this, CSK unlisted shares also saw a surge in demand throughout the IPL season. One of the interesting things here to note is the business model of Chennai Super Kings, which is considered the most profitable among all the IPL franchises. In this blog, we will discuss the business model of CSK in detail.

About Chennai Super Kings (CSK)

Chennai Super Kings (CSK) is the subsidiary brand of India Cements and has been part of the IPL since the first season. It was founded in 2008 and has won 5 IPL trophies till now. The team was based in Chennai, Tamil Nadu and played its home matches at Chepauk Stadium. Throughout its IPL journey, CSK has qualified for playoffs 12 times and played 10 IPL finals. 

As per the recent report of Forbes, the valuation of Chennai Super Kings was $1.15 billion in 2022, with a revenue of $41.2 million. In addition, CSK was officially incorporated on 19 Dec 2014 and is considered a non-government entity. It is the only IPL franchise team offering unlisted shares for trading in the grey market. Retail 

investors can easily buy CSK unlisted shares using online trading platforms like Stockify.

Business Model Of Chennai Super Kings

The Chennai Super Kings business model comprises different business segments, including selling match tickets, merchandise, and more. We will discuss various ways by which CSK makes money in the section below. 

Sponsorships

Like any other IPL franchise, CSK’s revenue model also comprises its majority of revenue via sponsorship of the brands. It is one of the significant parts of its business model, which involves various brands that have been marketed by giving space on CSK jerseys, cricket accessories, etc. As per the data shared, CSK has earned around 19% of its overall revenue from sponsorships. 

Sale Of Merchandise

Apart from the sponsorship, CSK earns via its merchandise, including jerseys and other items. In 2022, CSK partnered with PlayR to manufacture and market its merchandise. Every year, Chennai Super Kings earns 30% from the sale of its merchandise. We can say the business it generates from this segment contributes towards its overall net worth.

Match Tickets

Another important aspect of the CSK business model is its match tickets which remain in huge demand throughout the IPL season. Basically, Chennai Super Kings earns from the sale of the tickets of its home matches, for which it gets a certain percentage from the BCCI. The average price of the match ticket of the CSK remains from Rs 1500 to Rs 3000.

Media Rights

The BCCI sells the media rights of the IPL season to broadcasters and digital streaming services. It indirectly contributes towards the business model as CSK, like any other IPL team, also gets 40-50% of revenue from media rights. According to the sources, CSK earned around Rs 201.76 crore from media rights in 2022.

Unlisted Shares

You might not know, but CSK also earns from the sale of its unlisted shares. As it is an unlisted company, CSK pre-IPO stocks are available for trading in the grey market. When retail investors buy CSK unlisted shares, it directly benefits the cricket franchise. However, there is no clear data about how much Chennai Super Kings earns from the sale of its unlisted shares.

Buy CSK Unlisted Shares With Stockify

The business model of CSK has been profitable and contributes financially to this IPL franchise’s success. With every year, CSK’s revenue has increased with its performance. In the recent IPL season, the brand value of CSK surged, which also affected the performance of CSK unlisted shares in the grey market.

Throughout the IPL season, CSK unlisted share price remained between Rs 170 to Rs 180 per share. As a result, retail investors make a good return on their investment during this time. According to recent market data, Chennai Super Kings share price today is Rs 179 per share. However, it is also important to remember that the performance of CSK pre-IPO shares largely depends on the company’s performance and current market condition.

Since Chennai Super Kings IPO might also launch soon, it is profitable for you to become its early investor. At Stockify, you can buy CSK unlisted shares hassle-free and analyse their financial performance in the market. We have a team of expert brokers who understand the market conditions and help clients select trending unlisted shares. 

that brings long-term benefits. To buy unlisted shares of CSK and other top-performing companies, connect with our experts now!

FAQs

1- How Do The Chennai Super Kings Make Money?

The IPL franchise Chennai Super Kings earns money via different mediums like media rights, tickets sale, match fees, and trading of CSK unlisted shares.

2- Is CSK The Only IPL Franchise Whose Unlisted Shares Are Available For Trading?

Chennai Super Kings is the only IPL franchise offering unlisted shares for trading in the grey market. To buy CSK pre-IPO shares, connect with our experts.

3- How Can I Check CSK Unlisted Share Price Online?

You can check the updated CSK unlisted share price online by using Stockify. Here you will get CSK share price per recent market data.

4- Is Chennai Super Kings’ Business Model Profitable?

Yes, the business model of CSK is profitable as it generates revenue from different mediums. In FY22, the total revenue of the Chennai Super Kings was Rs 3.4 Billion.

5- Is It Profitable To Buy CSK Unlisted Shares In 2023?

The growth of the CSK pre-IPO stocks was positive throughout the IPL 2023 season. In addition, CSK unlisted shares also perform well during the off-season. So, it is profitable to buy CSK shares.

Table of Contents

The business model of CSK comprises its source of earnings via media rights, sponsorships, and more. Read the blog to know CSK business model in detail.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *

Join Stockify's WhatsApp Community
Stockify Fintech Pvt. Ltd.
Stockify Fintech Pvt. Ltd.

Register Your Interest

stockify-fintech-1.png
stockify-fintech-1.png
Provide Email And Download!
stockify-fintech-1.png
Register For Downloads
Stockify Fintech Pvt. Ltd

Provide Email And Download!

Stockify Fintech Pvt. Ltd.

Haven't found what you're looking for?
Speak to an expert.
Book an appointment by clicking on the link below.

Piyush Jhunjhunwala
Piyush Jhunjhunwala
CA, CPA, Ex. PepsiCo, Reckitt, Coty
CEO & Founder
Dubai, UAE.
Rahul Khatuwala
Rahul Khatuwala
Ex. Wipro & Finaco Founder
Co-Founder
Bangalore, India.