Archive image of the FIFA logo and the ISL Cup. (screenshot)
New Delhi: The Indian Super League (ISL) clubs, excluding East Bengal, have proposed a club-led model for running the league in the future while also handling commercial responsibilities. The proposal was emailed to the AIFF hierarchy, Indian Premier League clubs, and Joint Secretary of the Ministry of Youth Affairs and Sports Kunal K.The proposal comes ahead of the clubs’ meeting with AIFF President Kalyan Choubey on May 22. FIFA called a Special General Meeting (SGM) in Kolkata the next day. According to the agenda, AIFF members are scheduled to discuss the ISL and IWL commercial rights process and other issues during the SGM.
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“Following internal discussions among the ISL clubs, and based on the practical operational experience gained during the current season, the clubs would like to collectively propose a formally club-led model for the future operation and marketing of the ISL, with Genius Sports acting as the data and technology partner of the league,” the email sent by the club CEO and seen by TimesofIndia.com said.Genius Sports is one of the bidders interested in acquiring the commercial rights of ISL in a 15+5 year cycle. They have offered Rs 64.39 crore per annum (Rs 2,129 crore over 20 years) for the commercial rights of ISL. ISL clubs have already chaired a presentation by Genius Sports but question marks over the financial model remain unanswered.The clubs said that their knowledge of the local market puts them ahead of any foreign business partner.
“Through the experience gained this season, the clubs have identified several areas where meaningful efficiencies and cost optimization can be achieved, particularly in relation to league operations, production management, logistics, administration and central execution,” the letter read.“It is the clubs considered view that such improvement may be much more difficult for a foreign business entity without long-term operational roots in India to achieve effectively.“Furthermore, the Clubs are confident that, with the economies of scale available from running a full league season, coupled with the learning experience from the current year, the Clubs can collectively operate a simple, professionally managed and financially sustainable league structure.She continued: “The clubs’ internal projections indicate that a club-led structure can significantly reduce operating costs while maintaining the quality and integrity of the competition.”The clubs have proposed setting up a separate entity to run the league with the AIFF retaining a 10% ownership stake with the national body also providing oversight, organizational and refereeing support. The remaining 90% of the economic interest in the league will be retained by the clubs.The clubs also agreed to offset the financial impacts of this model on the AIFF. As a result, the clubs will advance the Rs 12.4 crore that Genius Sports would have contributed to FIFA’s coffers every year.
“The clubs will collectively pay the same fee structure currently envisaged by the AIFF under the Genius Sports model, thereby ensuring that the AIFF does not suffer any financial loss guaranteed under the proposed structure,” the letter said.“The AIFF will continue to retain veto rights and oversight in matters of sports integrity, discipline, organization and governance, while the clubs will retain veto rights in relation to commercial, structural and operational matters affecting the league,” the clubs proposed.In addition, the clubs have proposed limiting the management of the league to the 14 rival entities and the All India Football Federation, excluding the commercial partner. The clubs also want Genius Sports to limit itself to sports data, technology, integrity solutions, fan engagement technologies and related commercial products.With the framework significantly reduced, the clubs suggested that the payments owed to Genius Sports would be less than the current $7 million.With this proposal, the clubs have suggested that they are better placed to operate in the Indian market in terms of operations and marketing while also being prepared to work collaboratively with Genius Sports and AIFF. The onus is now on the AIFF as to what direction this proposal will take.
