ISL Clubs Urge AIFF to Delay Binding Decision on New Commercial Rights Holder
Panaji: In a significant development, Indian Super League (ISL) clubs have collectively urged the All India Football Federation (AIFF) to refrain from making any "binding decision" regarding the new long-term commercial rights holder. This appeal comes ahead of the federation's executive committee meeting scheduled for Sunday, where the matter is set to be discussed.
Clubs Cite Lack of Evaluation Time
The clubs have raised concerns over the lack of meaningful opportunity to properly evaluate the bidders. According to their communication, the Request for Quotations (RFQ) document was shared with them merely 12 hours before the bids were opened. This tight timeline has left the clubs feeling unprepared to make an informed choice between the contenders.
"In those circumstances, any expectation that the clubs should now immediately indicate a preference between the bidders would, with respect, be both premature and inconsistent with the seriousness of the decision at hand," the clubs stated in an email to the AIFF on Saturday.
Significance of the Decision
The clubs emphasized that this is not a routine commercial appointment. The selected party will have a material bearing on the structure, commercial direction, and long-term future of Indian football. They argued that such a critical decision must be based on a thorough understanding of the bidders' proposals, including:
- Business plans
- Revenue generation models
- Cost structures
- Operational capabilities
- Strategic assumptions
- Overall vision for the property
The Bidders and Their Offers
Two entities are in contention to acquire the combined commercial rights for the ISL and the Federation Cup:
- Genius Sports: A London-headquartered company that has offered $7 million annually (approximately Rs 64 crore).
- FanCode: This bidder has proposed Rs 36.6 crore per year.
Both offers include a five percent annual increment. However, the bids are structured differently, with club officials noting that revenue sharing will only commence after the commercial partner has recouped its initial investment.
Revenue Sharing Model
The proposed revenue distribution follows a 60-30-10 ratio:
- 60% to the clubs
- 30% to the commercial partner
- 10% to the AIFF
Notably, the AIFF is guaranteed 20% of the bid amount as administrative costs, which is described as "non-refundable and not contingent on any revenue accrual in favour of the bidder."
Clubs' Request for Presentations
The clubs have now formally requested the AIFF to arrange separate presentations and discussions with each of the two bidders. This would allow the clubs to hear directly from the contenders and evaluate their approaches in detail.
"The clubs should be given reasonable time to deliberate internally, including with our respective owners and key stakeholders, so that any view expressed is informed, responsible and, ideally, reflective of a collective position," the clubs stated.
Concerns Over Sunday's Meeting
With the executive committee meeting scheduled for Sunday, the clubs have strongly urged that no binding decision be taken at that meeting. They argue that making a decision before proper evaluation would contradict the principles of inclusiveness and collective decision-making that have been emphasized in the past.
AIFF Executive Committee Member Raises Concerns
AIFF executive committee member Avijit Paul has also expressed reservations about the bids. He highlighted that the AIFF's guaranteed takeaway from the Genius Sports deal would be around Rs 13 crore per annum, significantly lower than the previous marketing partnership which fetched Rs 50 crore annually.
Paul questioned the future of AIFF's 17 other competitions, which, excluding the Indian Football League, are estimated to cost the federation between Rs 25 and 30 crore. He warned that weakening the structure of club football could destabilize the foundation of the sport in India.
"The clubs not only spend hundreds of crores every year on the game but also play a major role in taking Indian football ahead. We are somehow duty-bound to protect their interests to the greatest possible extent," Paul stated.
Potential Long-Term Implications
Paul further cautioned that entering into one of these deals on a long-term basis might be unwise and could create challenges for future administrators of the game. He emphasized the need to protect club interests, given their substantial financial investments and pivotal role in advancing Indian football.
Next Steps and Constitutional Requirements
According to sources, the AIFF executive committee is likely to consider one of the proposals on Sunday. However, any final arrangement would require approval from the general body. As per the AIFF Constitution, agreements lasting longer than four years or involving amounts exceeding Rs five crore must be approved at an Annual General Meeting or Special General Meeting by at least 75% of members present and eligible to vote.
The outcome of Sunday's meeting and the subsequent deliberations will be crucial in shaping the commercial future of Indian football and the ISL.
