The Economics of the Indian Super League

ArsenalFan700

Based on this thread, I thought it was time to discuss this important issue in regards to the future of the Indian Super League and Indian football. Recently we have seen some users on here give their opinions on how we should expand the league in the future, what players we should buy, how the style of the league should bet etc etc.... this included me doing so myself. However, the thought then came to me that how could we give our opinions of what should happen next if we do not know the proper economics of the Indian Super League?

What is the current salary cap? Is there even a salary cap? How is revenue generated? Does STAR Sports pay money to broadcast the league like broadcast partners around the world do? etc etc.

These are questions we need answers for before we start to say what the next step should be.

ArsenalFan700

So, lets start. I found nothing about the economics of the ISL, apart from some reports from October from Ganguly saying he expects a profit within around a few years and another reports from after the ISL season from Das stating that the organizers do not know what the salary cap will be or if there will be one.

I am just going to go off and guess though that a lot of the economics behind the league are based on the Indian Premier League. According to this article, IPL revenues come from the sharing of TV revenue among the teams, sponsorship rights from the IPL being distributed equally, and local revenues like ticket sales, prize money, merchandise sales, trading of players, and the T20 Champions League.

I can only wonder at if we actually do any of this.

munna219777

Financial secrecy is the reason why this is not an official league. Thats why they do not have to open their account books to AFC or FIFA. This situation suits the ISL organisers more.

Even IPL is murky. Noone knows the actual owners of IPL Franchise-forget about account balancesheet. This article will try to explain how it works.

https://cricket.yahoo.com/news/bcci-settles-ownership-row-with-rajasthan-royals-041103677.html

For a layman, it is Sachin's Team or Dhoni's Team or John Abraham's Team who are just paid performers acting as owners because their marketing managers make money for them by appearances.
Some disgruntled investers from IPL may move to ISL Football next year if ISL is risk free from investigation.

ArsenalFan700

Ya, that is one of the things that pisses me off big time here, mainly about Indian sport overall. The NorthEast of India, FC Goa, East Bengal/Mohun Bagan rivalry, and Bengaluru FC have shown that you do not exactly need that big, flashy owner who is a bollywood/cricket star in order to do well. What the hell does John Abraham or Saurav Ganguly know about being owners of flashy sports teams?

Why not just bring them in as ambassadors or something, not the bloody owners! I know it is just a title at the end of the day but it does infuriate me.

As for the IPL issue, really shady stuff and also disappointing when one wants stable growth.

atuljg

I doubt Star Sports paid anything. They may have promised to produce an EPL style broadcast besides broadcasting in their regional channels. Anyway, the end product was really good!

archak

@atuljg Star Sports own a percentage of stake in ISL

Domnic

Firstly, FIFA and AFC require clear financial clarity. That is the major reason Churchill Brothers is thrown out. Bcoz they could not establish a clear source of Income.

Secondly, those harping about merging both leagues and all, Is ISL willing to disclose who are the benami owners??? Can they satisfy this major financial clarity criteria?? Remember most of the money paid to foreigners is white money. So they cant hide much like what current clubs are doing.

Thirdly,those wanting a longer league, can these clubs afford to pay huge money over a period of 8 months??? Even if they manage it, can they clarify their source??? ISL clubs have made considerable loss this year. With better players expected next year and that too for a longer period, can they continue with this and for how long??

atuljg

@Dominic

What makes you say that ISL clubs made a considerable loss this year?

wakao10

On an average each ISL club made a loss of about 30-35 crores.

All expenses amounted to about 40-45 crores including franchise fee, player salaries, travel,accommodation etc per franchise.

In return IMGR only gave peanuts back to each franchise from the central sponsorship pool + the individual sponsors of each franchise. This came to a total of about 8-10 crores in income.

atuljg

What about Television revenue and Stadium tickets?

Domnic

Supposedly insurance of each team was abiut 60 crore. As per news reports. Considering that teams stayed in 5 star hotels for 3-4 months, it was easily abt 100 crore spent.