ISL clubs seek time and discussions with bidders to decide on long-term commercial partner

Panaji: Indian Super League (ISL) clubs have collectively urged the All India Football Federation (AIFF) not to take any "binding decision" on the new long-term commercial rights holder when it comes up for discussion before the executive committee on Sunday.

The clubs have cited lack of meaningful opportunity to evaluate the bidders since the Request for Quotations (RFQ) document was shared with them just 12 hours prior to the bids being opened.




“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 said in an email to AIFF on Saturday. “This is not a routine commercial appointment. The party selected through this process will have a material bearing on the structure, commercial direction and long-term future of Indian football.

“A decision of this nature must be informed not merely by the fact of a bid having been submitted, but by a proper understanding of the respective bidders’ business plans, revenue generation models, cost structures, operational capabilities, strategic assumptions and overall vision for the property.”

Two bidders are in contention to acquire the combined commercial rights of the ISL and Federation Cup. London-headquartered Genius Sports has offered $7 million annually (approx. Rs 64 crore), while FanCode’s bid was for Rs 36.6 crore, both offering a five percent increment per year.

The bids, though, have been structured differently with club officials telling TOI that they will get a revenue share only once the commercial partner has recouped its investment. The revenue will be shared in a 60-30-10 ratio between clubs, commercial partner and AIFF. The federation, though, is guaranteed 20% of the bid amount as administrative costs, which is “non-refundable and not contingent on any revenue accrual in favour of the bidder."

The clubs have now asked the AIFF to facilitate separate presentations and discussions for the clubs with each of the two bidders, so that they can hear directly from them and evaluate their respective approaches.

“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.

“We are also aware that an executive committee meeting is scheduled for Sunday. In that regard, I would strongly urge that no binding decision be taken at that meeting. Doing so, before the clubs have had a proper opportunity to understand the bidders and deliberate amongst themselves, would not be in keeping with the spirit of inclusiveness and collective decision-making that we have all repeatedly spoken about and sought to uphold,” said the clubs.

Meanwhile, AIFF’s executive committee member Avijit Paul has raised concern that the bids might usher in a period of uncertainties in the overall activities of the AIFF and the states.

“As per my understanding, the AIFF’s guaranteed takeaway from the (London-based company) deal would be 20% of the amount, which is around 13 crore per annum. Unlike our deal with the previous marketing partners, which fetched us annually Rs. 50 crore, the present deals on the table are confined to two competitions, and hence, the amount offered is moderate. In that case, what is the future of the AIFF and its 17 other competitions, which, minus the Indian Football League, are likely to cost the federation between Rs. 25 and 30 crore?,” asked Paul.

The executive committee member from Odisha has also backed the clubs and warned that weakening the structure of club football would amount to leaving the plinth of the sport shaky.

“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. In my humble opinion, entering into one of these deals, especially on a long-term basis, would be unwise and may cause trouble for the future administrators of the game,” said Paul.

According to sources, the AIFF executive committee is likely to accept one of the proposals on Sunday and then take it to the general body for final approval. As per the Constitution, any arrangement for a period longer than four years and/or arrangement exceeding amount Rs. five crore “must be approved at an AGM/SGM by at least 75% of members present and eligible to vote.”