CSK Unlisted Shares: How Sports Franchises Fit Into Private Markets

Table of Contents

• Why Does the Market Look at CSK Unlisted Shares?
• What Are Unlisted Shares? What You Should Know
• Chennai Super Kings Cricket Team and the Corporate Stock Market
• Classification of Chris Super Kings Franchises in India
• Market Snapshot of CSK Unlisted Shares
• Who are the Shareholders of CSK Unlisted Shares?
• Chennai Super Kings Share Price Projection
• Procedure to Acquire CSK Shares
• Procedure to Dispose of CSK Unlisted Shares
• Investment Choices: CSK Versus Unlisted Market
• Things to Consider Before Investing
• CSK Unlisted Shares FAQ

Why CSK Unlisted Shares Are Getting Investor Attention

Unlisted share markets in India are one of the most dynamic and fast-moving stock markets globally. CSK unlisted shares are found at intersections between supportive investors and cricket fans.The Chennai Super Kings unlisted shares are only partially at the heart of the cricket ecosystem. CSK is a sports team that is at the center of the sports franchise industry and is one of the most valuable brands around the world. Moreover, for astute investors, it is a brand and financial product that is at the edge of public equity markets. If you are an investor in the industry and have been searching for ways to invest in the Indian cricket ecosystem, this is the one-stop resource to answer most of your questions. It answers questions related to the CSK unlisted shares, and the market dynamics, and outlines the procedures associated with the purchase and sale of these unlisted shares. For investors who are transacting in the unlisted share market for the first time and the sports asset market for the first time, they will be equipped with the relevant information to make an informed decision.

What Are Unlisted Shares? A Quick Refresher

Before talking about CSK, here’s the context. Unlisted shares are actually the equity shares of those companies, which aren’t in the list of any of the recognized exchanges, be it the BSE or the NSE. They trade in private networks which involve intermediaries, brokers, and designated platforms. The unlisted shares market in India has improved and has enjoyed a sustained growth over the last five years. It even includes the pre-IPO companies, subsidiaries of established public companies, and even special purpose companies, which are also called SPVs (special purpose vehicles), such as the sports companies. These shares provide a rare opportunity for retail investors, even people in the general public, to get involved in the previously mentioned wealth-creation opportunities, which have either not, or similarly may not ever, reach the public markets.

Some features of unlisted shares include the following:

• No listing in the exchanges, and therefore, all the trades are actually over the counter.
• No regulatory disclosures, compared to the listed public companies.
• They have higher potential returns, but at a higher risk.
• Illiquidity – the exit is virtually impossible, and therefore, almost limited, except through a secondary buyer.
• Price discovery is quite limited and therefore happens through negotiations.

You may think of unlisted shares as a potential private equity opportunity – not accessible only to institutional investors, but also to retail investors.

Chennai Super Kings: From Cricket Pitch to Capital Markets

Chennai Super Kings Cricket Ltd. (CSKL) is the registered company for the franchise. They have the franchise agreement with the Board of Control for Cricket in India (BCCI), and revenue is brought in from varied streams:

• ₹ 282.74 Crores shares in IPL media rights income (BCCI central pool).
• Various sponsorship and kit sponsorships (used to be with SNJ 10000 Cement, Muthoot Finance etc.).
• Market (Match) ticket sales for games held at the MA Chidambaram Stadium, Chennai.
• Player and Brand Merchandise and licenses.
• Revenue from Digital engagement.

CSK forms a unit with most shares in India Cements (now part of the UltraTech group after the Adani-India Cements deal) and has a very passionate fan base as well as an investor base. Due to the IPL spot-fixing case, the franchise was suspended for two IPL seasons (2016-2017), but earned a better resurgence, and in the 2021 and 2023 seasons, along with many other seasons, won the IPL Championship. Due to this and many other reasons, CSK unlisted shares are a great investment as the IPL has also changed Indian Cricket for the better, and has made better broadcasting deals.

How Sports Franchises Fit Into Private Markets in India

The financialisation of sports teams and treating them as investments is not a new concept – there is the NFL, the Premier League, even EPL and NBA teams, all of which have drawn international investment. This is not yet mainstream in India, but the IPL has broadened this area considerably.

Here’s why sports franchises occupy a unique section of India’s private markets:

Presence of Brand Value

A sports franchise’s financial statement presents a partial picture of its true worth. The sports franchises’ balance sheets may not have numbers, but they hold millions of dollars in brand value, fan affinity, and media presence. Various valuation firms have pegged the brand value of CSK to be in the millions of dollars.

Balancing of Media Rights Revenue

BCCI controls the partition of the IPL media rights revenue among franchises. So, CSK’s balance sheet depicts a media revenue guarantee, which is an extremely rare feature in private market investments.

Scarcity Multiplier

There are only 10 franchises in the IPL. A multi-hundred-crore franchise fee establishes a high barrier to market entry. This prevents franchises from passing a scarcity multiplier through to their franchise valuation.

Evolving Market Regulations

While shares of NSE unlisted financial intermediaries or MSEI unlisted shares of exchange entities, which are published under SEBI jurisdiction, sports franchise shares are in a gray area of shifting regulations. Investors should be careful, as SEBI’s Prohibition of Insider Trading (PIT) regulations and the takeover codes are likely to be inconsistent.

CSK Unlisted Shares Today: Live Price and Market Overview

While investing, most people want to know how much the CSK unlisted shares cost in the secondary unlisted market. While a ticker may not be available on Zerodha or Growth for listed equities, share prices can be discovered in a number of ways.

• Broker networks and OTC deal flows.
• Dedicated unlisted share platforms.
• Negotiated trades between buyers and sellers.

Currently, in the unlisted market, the price of a CSK share is reflective of, Recent BCCI media rights deals (The deal of 2023–2027 was for ₹48,390 crore)

• Performance of the IPL season, and the standing of CSK’s brand.
• General trends of the unlisted market.
• Demand-supply of institutions and HNI buyers.

The unlisted share price of CSK should be considered as CSK’s unlisted share price, and thus, a price will be determined at which the buyers and sellers of such shares should trade on the OTC. Prices quoted on social media or in WhatsApp groups are stale or unreflective of true deals and prices.

CSK Unlisted Shares List: Who Holds These Shares?

Looking at the CSK unlisted shares will give you an idea of the quality of shares you wish to purchase, and who you will be buying the shares from, and who the other investors are with you on the market.

Chennai Super Kings Cricket Ltd. has had the following shareholder base:

• India Cements Ltd. the primary and founding shareholder.
• Entities of the Promoter group associated with the family of N. Srinivasan.
• High Net Worth Individuals (HNIs) and private investors are purchasing shares in the secondary market.
• Management and employee shareholders in some situations.

When obtaining CSK unlisted shares in the secondary market, note this: You are not purchasing shares directly from CSKCL.You are purchasing shares from a prior shareholder of CSKCL who is choosing to sell. This implies the transfer and the verification of share certificates (both physical and demat) is of utmost significance.

Always use verified intermediaries that provide:

• Share Transfer Contracts.
• Demat credit confirmations.
• Permission of the Board of Directors to transfer (where the company’s Articles of Association so require).

Chennai Super Kings share price in unlisted markets has some unique fundamentals, market participation, brand valuation, and franchise valuation. A few of these fundamentals are utilized by most market participants and analysts.

Most analytical models use a revenue multiple

The BCCI’s deal of media rights has a direct increase of income per franchise and in valuation multiples of that income, hence CSK’s share price could see a positive and direct increase.

IPL Brand Valuation Reports

Every year, Kroll and D&P India publish IPL brand valuations. CSK is always one of the top 2–3 franchises. These reports shape market pricing expectations.

Potential Listing Catalyst

For many years now, people have been guessing if IPL franchises will list on the Indian stock market (like Manchester United (NYSE: MANU) does). If this were to happen, it would be a strong driver of the CSK share price targets.

CSK vs Other Unlisted Market Opportunities

CSK unlisted shares are just a drop in the bucket for India’s private markets. For those with an appetite for venture diversification, consider:

• Polymatech Unlisted Share: adjacent to semiconductors and the electronics markets.
• OYO Unlisted Shares: hospitality giant, turbulent but possibly near a public listing
• Zepto Unlisted Shares: one of the fastest in the hyper-delivery and D2C space.

​Each investment is in a unique market, presenting different risks and timelines for the future. The unlisted shares market beyond CSK offers several opportunities.

Final Thoughts

CSK unlisted shares are one of a kind in the private market of India, with a combination of Sports Entertainment and Private Equity. With some of the most recognizable brands in Indian sport, the revenue model of the Chennai Super Kings Franchise aids in the central BCCI distributions and independent commercial activity. This is not an investment for everyone. With the lack of liquidity and other regulatory safety steps that are present in listed markets, the size of your investment, the due diligence, and your choice of the investment platform are of great importance. For investors with an understanding of the risks and willingness to look at a multi-year horizon, CSK unlisted shares present profitable potential to add value to the portfolio shares of investments in a niche of the market that has only yet been discovered by a limited number of retail investors.

FAQ’s

Disclaimer

This article is for informational purposes only and should not be considered investment advice. Prices and data of unlisted shares are based on publicly available sources and may vary. Investors are advised to conduct independent research or consult financial professionals before making investment decisions.