The Hero Indian Super League (ISL) is a premier football initiative in India. Established in October 2014, the league is presently witnessing its third innings. Co-promoted by IMG-Reliance and Star India, the league draws support from the All India Football Federation (AIFF).
Spanning eight cities, the league franchises are based in Kochi, Chennai, Goa, Pune, Mumbai, Delhi, Kolkata, and Guwahati. In 2010, during the first auction and drafting event of the league’s football players, the amount spent was Rs. 12.45 crore. Franchise owners believe that this league is a fundamental investment in the field of sports in India. Together with
Nita Ambani, Chairperson of the ISL, the owners believe that although breaking even may take time, it is necessary to improve the scope and opportunities available in Indian football.
Risks involved with investing
Sourav Ganguly, one of the proprietors of Atletico de Kolkata, explained how all the franchise owners sat together to decide the league’s financial viability. Although their plan was to be prepared for a loss worth Rs. 20 crore annually during the league’s initial years, the 2014 edition witnessed a slightly higher loss than what was estimated. When the league and AIFF officials were asked regarding the loss incurred by the eight franchises, they estimated the figure to be approximately Rs. 35 to Rs. 40 crore during the first season itself.
However, 2017 is predicted to be the year that would potentially help the franchises at least break even if not enjoy the profit.
Future of ISL
Gaurav Modwel, the CEO of Pune City Football Club, explained how the league is a step in the right direction even if it initially seems risky. He said that the ISL has just taken off and will face initial challenges like engagement with viewers and sponsorship. However, he stated that this can be effectively tackled in future.
Business plan of the ISL
The projected loss according to the official strategy of the league was Rs. 20 crore during its first edition. Gaurav Modwel explained that the loss exceeded their estimation since the salaries for both players and coaches were higher than the figures factored in. Additionally, the pre-seasons held in Europe also contributed to the hike.
Post the first ISL edition, a salary cap was introduced for all players. According to IMG Vice-President of Football, Andy Knee, this helped to keep control over the budget and increase fiscal discipline. Going forward, the league aims to resolve its budgetary problems through sponsorship deals, a more comprehensive sponsor pool, and perhaps even broadcast revenue sharing.
Gaurav Modwel explained that the investment required for owning clubs is generally around Rs. 250 crore. After this, an annual loss of Rs. 20 crore is to be expected. However, this loss should not act as a deterrent for potential owners and partners. Instead, it should be taken up as a challenge. He said that the upcoming editions of the ISL will definitely help transform this situation and that people should step forward to develop the sport by associating with the ISL.
Summary
The Indian Super League owners consider their investment in the league to be a way of developing sports, particularly, football in India.