New Delhi: London-based Genius Sports has bid Rs 64.39 crore per annum or about Rs 2,129 crore over 20 years. Commercial rights of Indian Super League (ISL) and Federation Cup. FanCode’s bid for the same properties is about half that: 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 the tenders opened on Friday (March 27).The two stakeholders in Indian football are at different ends on the two bids. Because of the two-bid structure, the ISL clubs feel FanCode is a better deal, while the AIFF, which runs the league and invited bids, finds Genius Sports’ offer more favorable.
The difference lies in the details of how the commercial rights pool will be allocated between the AIFF, the clubs and the eventual winner of the tender.
How will the revenue be shared?
Under the revenue sharing model proposed in the tender, the AIFF will take home a fixed 20 per cent of the amount put in by the bidder. Then, at the end of the season, 70 percent of the net revenue will be shared with the AIFF and the rest will go to the commercial partner. Of the 70 percent that the AIFF receives, 60 percent will go to the participating clubs.It should also be taken into account that in case of net losses they are carried forward to the next year. So, the challenge increases for the second year as the challenge of breaking even, let alone making a profit, becomes even greater.
File photo of Indian jersey with AIFF logo.
Why AIFF wants Genius Sports
On the face of it, Genius Sports is the biggest bidder and helps the cash-strapped football body. They make money regardless of what happens at the end of the season. However, with the sports tech company investing Rs 64.39 crore every year, the challenge of bringing it back will be high. In this scenario, clubs would receive a smaller, if any, share of the funds.
Why do clubs prefer fan codes?
Both the club and the company that owns Dream 11 are targeting a long-term vision and a viable financial structure. Since FanCode will put in more than Rs 36 crores every year, the chances of breaking even and making a profit are high. In this scenario, the clubs have the potential to make money even though it means the AIFF’s direct and immediate stake is less.
Boli and AIFF take home.
1. Fan CodeFirst Year Expenses: 36 crores of RsAnnual Increase: 5 percentTotal costs over 20 years: 1,190 crores (approx.)Contribution of AIFF in the first year: 7.2 crores (20 per cent).Part of AIFF for over 20 years: 238 crores (approx.)2. Genius SportsFirst Year Expenses: 64.39 crores of RsAnnual Increase: 5 percentTotal costs over 20 years: 2,129 crores (approx.)Contribution of AIFF in the first year: 12.87 crores (20 percent).Part of AIFF for over 20 years: 425.80 crores (approx.)
Why invite bids for the first 15+5 years?
East Bengal vs Mohammedan Sporting during the ongoing ISL season. (Photo: 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, coming in as a ‘strategic time-out’ sponsor for Rs 12-15 crore for the first three seasons. In 2018, the contract was renewed for five seasons. And by 2024, when it was renewed again, the cost was Rs 240 crore for five years or Rs 48 crore a year — a fourfold increase in nine years.Back to Indian football, the AIFF has been selling the rights to its properties for 15-20 years at prevailing rates when the market is not favorable for the future of the game, considering we are witnessing a truncated season that started five months late.
Former AIFF general secretary Shaji Prabhakaran has advocated for a small commercial rights window. (Image: X)
Former AIFF General Secretary Shaji Prabhakaran gave this argument on social media. “Indian football deserves to be more favorable. [sic] Commercial Roadmap. This 15-20 year contract will hurt football,” he wrote on X.“The current bids do not offer the sustainability required by the AIFF or its clubs. “The AIFF must avoid the long-term trap, limiting participation to 2-3 years when the market value is low (current football market in India).“Let’s create an ecosystem that actually guarantees revenue distribution where it’s needed most: the clubs,” he continued.Now, the onus is on the ISL clubs, who are already pouring in money, to interact with the AIFF and share their views on what will be the roadmap for the next two decades of Indian football. The big decision could be taken as early as Sunday when the bid evaluation report is presented to the AIFF Executive Committee.
