IPL 2020: CSK market value registers major drop amid coronavirus pandemic

Three-time Indian Premier League (IPL) winners, Chennai Super Kings' (CSK) valuation has dipped by 20 per cent in the last couple of months. This fall in their valuation is majorly due to the uncertainties surrounding this year's IPL edition, amid the coronavirus outbreak.

According to the report by economic times, CSK's unlisted shares were trading at Rs 24 each at a market value of Rs 800 crores in the informal market. This comes after their valuation reached Rs 1,000 crores a few months back.

An investment banker explained that CSK's unlisted shares dropped from Rs 30 to Rs 24 in the last couple of months after the team saw an unprecedented rise in their valuation (double) over the past one year.

“The last trades in CSK have happened at Rs 24, much lesser than the Rs 30 that happened a few months ago. Obviously, this is the impact of the likely cancellation of IPL-2020 on the team’s valuations.”

Also see – IPL 2020 Team

In the brand valuation of IPL that was conducted by Duff & Phelps last year, CSK stood second (Rs 732 crores) only to Mumbai Indians' (MI) valuation of 809 crores. Kolkata Knight Riders (KKR) was number 3 at Rs 629 crores. The entire IPL brand was valued at more than Rs 48,000 crores, making it one of the richest leagues in the world.

The coronavirus outbreak has jeopardised cricket throughout the world, including IPL 2020. The tournament, which was scheduled to begin from March 29, was postponed till 15th April. With the situation not getting better, the tournament is likely to be postponed to the October-November window if the ICC WT20 is cancelled.

A senior BCCI official confirmed to Sportskeeda that a shortened version of IPL is being planned later this year, if the pandemic slows down. .