Kamal Ghorui
New Delhi: The Indian Super League (ISL) clubs, except East Bengal, have proposed a club-led model to run the league in the future while also handling the commercial responsibilities. The suggestion was emailed to the AIFF hierarchy, the ISL clubs, and the Ministry of Youth Affairs and Sports Joint Secretary Kunal K.The suggestion comes ahead of the clubs’ meeting with AIFF president Kalyan Chaubey on May 22. AIFF has called a Special General Meeting (SGM) in Kolkata a day later. As per the agenda, AIFF members are due to discuss the commercial rights process for the ISL, the IWL and other issues during the SGM.
“Following internal discussions amongst the ISL clubs, and based on the practical operational experience gained during the current season, the clubs collectively wish to formally propose a Club-Led Model for the future operation and commercialization of the ISL, with Genius Sports acting as the league’s Data and Technology Partner,” said the email sent by a club CEO and seen by TimesofIndia.com.Genius Sports is one of the two interested bidders for commercial rights for the ISL on a 15+5 year cycle. They bid Rs 64.39 crore per year (Rs 2129 crore over 20 years) for the ISL’s commercial rights. The ISL clubs have already presided over a presentation by Genius Sports but question marks over the financial model remained unanswered.The clubs have argued that their knowledge of the local market puts them ahead of any foreign commercial partner.“Through the experience gained this season, 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 centralized execution,” said the letter.“It is the considered view of the clubs that such optimization may be considerably more difficult for a foreign commercial entity with no longstanding operational roots in India to effectively achieve.“Further, the clubs are confident that, with the economies of scale available from operating a full league season, combined with the learning experience from the current year, the clubs can collectively operate a lean, professionally managed, and financially sustainable league structure.“The clubs’ internal projections indicate that a club-led structure can substantially reduce operating costs while maintaining the quality and integrity of the competition,” it continued.The clubs have proposed that a separate entity would be formulated to run the league with AIFF retaining a 10% ownership interest with the national body also providing oversight, regulatory support and referees. The remaining 90% of the economic interest in the league would be held by the clubs.The clubs have also agreed to offset the financial implications of this model on the AIFF. As a result, the clubs would foot the Rs 12.4 crore that Genius Sports would have contributed to AIFF’s coffers each year. “The clubs would collectively pay the same AIFF fee structure presently contemplated under the Genius Sports model, thereby ensuring that the AIFF does not suffer any guaranteed financial loss under the proposed structure,” said the letter.The clubs proposed that the “AIFF would continue to retain veto and supervisory rights regarding integrity, disciplinary, regulatory, and sporting governance matters, while the clubs would retain veto rights regarding commercial, structural, and operational matters affecting the league.”Additionally, the clubs suggested limiting league governance to the 14 competing entities and the AIFF, excluding the commercial partner. The clubs also want Genius Sports’ role be limited to sports data, technology, integrity solutions, fan engagement technologies, and related commercial products.With their framework reduced considerably, the clubs have suggested that payments due to Genius Sports will be less than the current $7 million.With the proposal, the clubs have suggested that they are better placed to act in an Indian market on operations and commercialisation while also being prepared to work collaboratively with Genius Sports and the AIFF. The onus now lies on the Indian football federation on where they go with the proposal.
