The profit of the popular Indian Premier League (IPL) franchise Chennai Super Kings (CSK) has taken a hit in FY22 owing to increased expenses, even though the company has reported an increased revenue.
CSK reported a net profit of `32.12 crore in the year ended March 2022, as against `40.26 crore in the previous year, registering a drop of 20%.
The company, however, earned a revenue of `349.14 crore as compared to `253.69 crore in the previous year, marking an increase of 38%. It incurred a total expense of `307.81 crore in FY22 as against `194.50 crore in FY21, thereby the overall costs going up by around 59%.
“The expenses for the year under review have been higher consequent to the tournament being held in two stages and with the second stage being held overseas. The revenue was also higher due to the team winning the title. In order to conserve resources, the company has not declared any dividend for the year ended March 31, 2022,” the company said in its Annual Report 2022.
On the revenue front, CSK’s income from grant of central rights stood at `242.27 crore as against `185 crore, registering a 31% rise. The sponsorship income posted a 9% increase at `65.02 crore as compared to `59.62 crore while other tournament related income was at `33.74 crore as against `3.20 crore.
The company is planning to create a high-performance centre on its land at Navallur for providing state-of-the-art training facilities to cricketers and sports persons. The training facility will also have a sports complex and a cricket ground for Chennai Super Kings to have their pre-match practice sessions. The company has initiated steps during the year under review to create the infrastructure towards this initiative.
CSK had submitted a bid on July 13, 2022 to acquire a franchisee in the T20 domestic league conducted by Cricket South Africa and a license was granted for participating in the league in the city of Johannesburg. The first edition of the tournament is likely to take place in January and February 2023. The financial commitments relating to the above will be dealt with on execution of agreements, the annual report said.
The IPL season in 2021 was started as usual in April and the tournament was held only in four centres and CSK team played all its matches in Mumbai and New Delhi. The tournament had to be stopped midway due to the significant spread of Covid 19 in India. All the teams had played about seven matches each when the tournament was suspended. Thereafter, the tournament was continued in United Arab Emirates (UAE) and the CSK team won the IPL trophy for the fourth time.
