There isn’t any question about the surge of Indian interest in football that has occurred due to the ISL. It is one of the fastest-growing leagues in the world with an attendance equalling the reputed Spanish La Liga. Further, the ISL has brought in unbelievable tie-ups, from Hyderabad FC partnering with German club Borussia Dortmund for youth development and coach training, to Bengaluru FC partnering with the Scottish Rangers FC for multi-faceted opportunities. However, a problem that needs addressing has emerged, and it could potentially harm the upward graph of the ISL.
The league has unfortunately been a loss-making venture for the clubs that partake in it, with clubs losing money on an annual basis. Although there are several factors associated with this, the primary issue is the franchise fee that clubs pay to the franchise holders of ISL, which is currently Reliance Industries Ltd. Franchises have to pay a large chunk of money, currently 12-16 crore annually. Clubs like Bengaluru have suffered at large after moving from the I-league to the ISL. Add player salaries to this, and clubs are really in a dilemma that isn’t going to sort itself out.
Also, the current valuation of all clubs put together comes to 432 crore (source: transfermarkt.co.in). For context, La Liga, which gets an equal amount of crowd as the ISL does, has their clubs valued at a total of 39726 crore. That’s close to 100 times more than the ISL! The ISL clubs are valued much less due to the value of players differing majorly in La Liga. There is also a lack of infrastructure and assets in general; ISL clubs don’t own stadiums, academies or football schools like a majority of European clubs.
The lack of facilities and an incredibly dense population mean that Indian clubs could never be able to obtain the sort of land and assets needed to build value for themselves. Without these, it is always going to be a steep task to break even with the clubs, let alone turn them into profitable ventures. The answers to building a profitable model aren’t easy, and it is to be seen if it is even possible. Amidst all the talk about how essential ISL has been in the uplifting of Indian football, there has been a price to pay, and it isn’t insignificant.
