Potential bidders for franchisees ask for clarity on I-League’s revenue share model

Franchisees who are interested in running/owning I-League clubs next year had plenty to ask about the revenue share model presented by the Indian FA.

In a meeting held earlier this week attended by five potential bidders for franchisees in the I-League next season, questions were asked with regards to the revenue share model. 

GMR Group, who were represented by an agency, Mumbai Tigers, JSW Group, Eagles FC and Infrastructure Leasing and Financial Services (ILFS) were the five parties who had bought the Request for Proposal (RFP) and attended the meeting in order to seek clarifications for the Indian FA. 

It is reliably learnt that the bidders asked for the model of revenue sharing be shared with them in order for them to evaluate the worth of this project. 

As of today, the All India Football Federation (AIFF) have sold the marketing and commercial rights to IMG-Reliance for a period of 15 years, back in 2010, and in return are given a fee to conduct their activities. 

According to a source close to Goal, the AIFF and IMG-Reliance held discussions on the revenue sharing model wherein the latter asked for the former’s assurance to guarantee Indian players for their proposed two-month long tournament scheduled for January 2014.

In return, IMG-Reliance were willing to offer a significant percentage of revenue share only after the realisation of payments, production costs and taxes. It must be noted that after the production costs given that the league isn’t a marketable property and the revenue generated is next to none. So even if the clubs were to get a revenue share, it would possibly only be on paper. 

Meanwhile the Indian FA have agreed to “facilitate” but have communicated that it isn’t in their jurisdiction to force the I-League clubs to release their players for the said tournament. It must be noted that the AIFF have to share the model for revenue sharing before May 8, as mentioned in the RFP. 

The potential bidders for franchisees weren’t too pleased that the AIFF charging an annual participation fee of INR 3 crores for the next five years in lieu of direct entry into the I-League. 

“In the open house at Delhi, we were told that the participation fee would be nominal. We asked the federation as to where this will be utilized and whether this could be reduced. We were told however that this fee is sacrosanct and cannot be altered,” informed one of the potential bidders who attended the meeting to Goal

“For now, we are awaiting what the AIFF has to say on the revenue sharing model,” another potential bidder told Goal.

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