Raising the game

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Chennai Super Kings (CSK) has reaffirmed its revered status in the sporting franchise business by winning another IPL title. Along with success on the field, the team has managed to build a robust brand name, giving its parent company India Cement enough to ponder about its next growth phase. With its valuation now reportedly nearing ‘unicorn’ status, it is perhaps time for the country’s investor fraternity to seriously look at sports teams from the perspective of a well-run commercially viable organisation.

It is perhaps time for sporting companies to list in the stock markets and unleash a new investment culture. Sporting activities have started gaining active interest of more and more well-heeled individuals in sufficient numbers that can give rise to a new market. It can also inaugurate a new era in professional management of sports as seen abroad.

In this context, CSK can help trigger another winning combination off the field. India Cements head N Srinivasan has confidently stated that he feels that CSK’s market cap will be bigger than that of the parent company as franchise-based leagues are set to grow further in popularity. He has also publicly acknowledged how CSK’s achievements on the field have helped burnish the brand image of the 75-year-old India Cements, which is also known for its long association with cricket.

All these developments paint a very promising picture of the numerous opportunities on offer for further financial growth of stakeholders and the ecosystem. Over the past year and a half, roughly coinciding with the pandemic, the equity markets have matured at a rapid pace. The country’s entrepreneurs are also building startups that are turning unicorns at an astonishing rate. If sports companies can dare take the first step, investors seem to be ready to give a thunderous applause. If the investors are game, sporting companies should not lag behind.