FC Goa vs Chennaiyin FC during the ongoing Indian Super League season. (Image: AIFF) NEW DELHI: London-based Genius Sports has bid Rs 64.39 crore annually, or around Rs 2,129 crore over 20 years, for the commercial rights to the Indian Super League (ISL) and the Federation Cup. FanCode’s offer for the same properties is roughly half that: Rs 36 crore in the first year or Rs 1,190 crore over 20 years. These are the two options ahead of the All India Football Federation (AIFF) and 14 ISL clubs after the bids opened on Friday (March 27).Both the stakeholders in Indian football are at different ends of the two bids. Due to the structure of the two bids, the ISL clubs believe that FanCode is the better bid, while the AIFF, which runs the league and has called for bids, sees the Genius Sports bid as more advantageous.
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Football is coming back to Delhi! SC Delhi is gearing up for the first ISL home matchThe difference lies in the details of how the commercial rights pool will be divided between the AIFF, the clubs and the eventual winner of the tender.
How the proceeds will be shared
According to the revenue sharing model proposed in the tender, AIFF will take a fixed 20 percent of the amount that the bidder deposits. Then, at the end of the season, 70 percent of the net income will be shared with the AIFF and the rest will go to the commercial partner. Of the 70 percent received by the AIFF, 60 percent will go to the participating clubs.It should also be taken into account that in the case of net losses, they are carried over to the next year. So the challenge deepens the second year because the challenge to make a profit, let alone make a profit, becomes even higher.
File photo of Indian jersey with AIFF logo.
Why AIFF wants Genius Sports
On the face of it, Genius Sports is a bigger deal and helps a football body with limited income. They make money no matter what happens at the end of the season. With the sports technology company putting in Rs 64.39 crore every year, the challenge to return that and more will be higher. In this scenario, the clubs will receive a smaller, if any, share of the funding.
Why clubs prefer FanCode
Both the clubs and the company owned by Dream11 focus on a long-term approach and a feasible financial structure. With FanCode putting in more than Rs 36 crore every year, the chances of making a profit and turning a profit are higher. In this scenario, the clubs have a chance to make money, even if it means that the AIFF’s direct and immediate stake is less.
OFFERS AND AIFF TAKE HOME
1. FanCodeSpending in the first year: 36 crores of RsAnnual increments: 5 percentTotal expenses over 20 years: Rs 1,190 crore (approx)AIFF share in first year: Rs 7.2 million (20 percent)Share of AIFF in 20 years: Rs 238 crore (approx)2. Genius SportsSpending in the first year: 64.39 crores of RsAnnual increments: 5 percentTotal expenses over 20 years: Rs 2,129 crore (approx)AIFF share in first year: Rs 12.87 crore (20 percent)Share of AIFF in 20 years: Rs 425.80 crore (approx)
Why invite offers for 15+5 years at all?
East Bengal vs Mohammedan Sporting during the ongoing ISL season. (Image: AIFF)
In most sports, or even most brand associations, short-term deals are preferred over long-term associations. CEAT Tires has been associated with the Indian Premier League (IPL) since 2015 when it first became a ‘strategic timeout’ sponsor for three seasons for a reported Rs 12-15 crore. In 2018, the contract was renewed for five seasons. And by 2024, when it was renewed again, the award was Rs 240 crore over five years, or Rs 48 crore a year – a fourfold increase in nine years.Coming back to Indian football, the AIFF are selling the rights to their assets for 15-20 years at prevailing rates, when the market is not favorable for the future of the sport, given the shortened season that started five months late.
Former AIFF general secretary Shaji Prabhakaran advocated a smaller window for commercial rights. (Image: X)
Former AIFF General Secretary Shaji Prabhakaran made the same argument on social media. “Indian football deserves a more favorable (sic) commercial plan. This 15 to 20 year contract will make football suffer,” he wrote on X.“The current deals do not offer the sustainability needed for the AIFF or its clubs. “AIFF has to avoid long-term traps, limiting the partnership to 2-3 years is essential while the market is undervalued (the current market for football in India).“Let’s build an ecosystem that really guarantees revenue distribution where it’s needed most: in the clubs,” he continued.It is now up to the ISL clubs, who are already bleeding money, to discuss and share their views with the AIFF on what the plan will be for the next two decades of Indian football. This huge decision could be taken as early as Sunday, when the bid evaluation report is submitted to the AIFF executive committee.
