FC Goa vs Chennaiyin FC during the ongoing Indian Super League season. (Image: AIFF)
NEW DELHI: London-based Genius Sports has made a bid of Rs 64.39 crore per annum, or approximately Rs 2,129 crore over 20 years, for the commercial rights to the Indian Super League (ISL) and Federation Cup. FanCode’s offer for the same properties is nearly half that amount: Rs 36 crore for the first year, or Rs 1,190 crore over 20 years.
These are the two options before the All India Football Federation (AIFF) and the 14 ISL clubs after bidding opens on Friday (March 27).Both parties involved in Indian football are on opposing sides regarding the two bids. Given the structure of the two bids, ISL clubs feel FanCode is a better deal, while the Indian Football Association, which runs the league and which invited bids, finds Genius Sports’ bid more suitable.
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ISL Commercial Rights: AIFF received two different bids
The difference lies in the details of how the pool of commercial rights is allocated between FIFA, the clubs and the eventual winner of the bid.
How will revenue be shared?
Under the revenue sharing model proposed in the tender, the AIFF will get a fixed percentage of 20 per cent of the amount offered by the bidder. Then, at the end of the season, 70 per cent of the net revenue will be shared with the AIFF and the rest will go to the commercial partner. Of the 70 percent received by FIFA, 60 percent will go to the clubs concerned.
It must also be taken into account that in the case of net losses, they are carried forward to the following year. Therefore, the challenge intensifies for the second year as the challenge of breaking even, let alone making a profit, becomes higher.
Archive photo of the Indian shirt bearing the Indian Football Federation logo.
Why does FIFA want Genius Sports
On the face of it, Genius Sports is the biggest offer and is helping the cash-strapped football body. They make money no matter what happens at the end of the season. However, with the sports tech company putting in Rs 64.39 crore every year, the challenge of returning this amount and more will be higher.
In this scenario, the clubs would receive a smaller share, if any, of the money.
Why do clubs prefer FanCode?
Both the clubs and the Dream11-owned company are targeting a long-term approach and a feasible financial structure. Since FanCode will be putting in over Rs 36 crore every year, the chances of breaking even and making a profit are higher. In this scenario, the clubs have money-making opportunities even though it means that AIFF’s direct and immediate share is smaller.
Bids and AIFF take home
1. Fan iconFirst year spending: Rs 36 croreAnnual increases: 5 percentTotal spending over 20 years: Rs 1,190 crore (approx.)Union share in the first year: Rs 7.2 crore (20 percent)FIFA share over 20 years: Rs 238 Crores (approx.)2. Genius sportsFirst year spending: Rs 64.39 croreAnnual increases: 5 percentTotal spending over 20 years: Rs 2,129 Crores (approx.)Union share in the first year: Rs 12.87 crore (20 percent)FIFA share over 20 years: Rs 425.80 Crores (Approx.)
Why are we calling for 15+5 year offers in the first place?
East Bengal vs Mohammedan Sporting during the ongoing ISL season. (Image: AIFF)
In most sports, or even with most brand associations, short-term deals are preferable to long-term associations.
CEAT Tires has been associated with the Indian Premier League (IPL) since 2015, after debuting as a ‘strategic lead-time’ sponsor for three seasons for Rs 12-15 crore. In 2018, the contract was renewed for five seasons. By 2024, when it was renewed again, the valuation was at Rs 240 crore for five years or Rs 48 crore annually – a four-fold increase in nine years.Coming back to Indian football, the AIFF sells its property rights for 15-20 years at prevailing rates when the market is not right for the future of the sport, considering we are in the midst of a truncated season that started five months late.
Former FIFA Secretary General Shaji Prabhakaran has called for a smaller window for commercial rights. (Image: X)
Former FIFA Secretary General Shaji Prabhakaran made the same argument on social media. “Indian football deserves a better fit [sic] Business road map. “This 15-20 year deal will make football suffer,” he wrote on X.“The current offers do not provide the necessary sustainability to the AIFF or its clubs. “FIFA should avoid long-term traps, as limiting partnerships for 2-3 years is necessary while the market is undervalued (current market for football in India).“Let’s build an ecosystem that ensures revenues are distributed where they are needed most: the clubs,” he continued.Now, it is the responsibility of the ISL clubs, which were already bleeding money, to discuss and share their views with the AIFF about the roadmap for the next two decades for Indian football. The massive decision could be made as early as Sunday when the bid evaluation report is submitted to the AIFF Executive Committee.