Financial Sustainiblility in Indian Football

Somnath_SenguptaSomnath_Sengupta 3 Points
edited August 2011 in Indian Football Clubs
<!-- m --><a class="postlink" href="http://www.thehardtackle.com/index.php/indian-club-football-how-financially-sustainable-is-football-in-india/">http://www.thehardtackle.com/index.php/ ... -in-india/</a><!-- m -->


I-League Rs. 50 lakhs
IFA Shield Rs. 10 lakhs
Rovers Cup Rs. 10 lakhs
Durand Cup Rs. 20 lakhs
Federation Cup Rs. 15 lakhs
U-19 I-League Rs. 0 (Rs. 2.5 lakhs appearance money)
Odafa Okalie Rs. 2.5 crores

As the table shows, Indian clubs can make at most Rs. 1 crore if they win every big tournament, which is impossible. Money offered by AIFF for other expenses is also pitifully low. During Federation Cup, India’s most important Cup competition, players were allowed a daily allowance of Rs. 200 and food allowance of Rs. 100! Dearth of prize money makes clubs over dependent on sponsors. Once a sponsor decides to move out, the club gets into financial trouble. And nobody can blame the sponsors for moving out. The main goal of sponsors should be financial profit and promotion of themselves. However, since clubs make negligible profits the sponsors don’t make any profit and register losses. UB group can get good mileage by sponsoring Mohun Bagan and East Bengal because of both clubs’ mass appeal but what about a club like United SC or Mumbai FC? These clubs are still struggling to build a fan base and backing them doesn’t guarantee publicity for a sponsor.
munna219777
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Comments

  • archakarchak 2081 Points
    My idea to make the clubs is a double edged sword by making clubs pay transfer fee.
  • http://www.thehardtackle.com/index.php/indian-club-football-how-financially-sustainable-is-football-in-india/


    I-League Rs. 50 lakhs
    IFA Shield Rs. 10 lakhs
    Rovers Cup Rs. 10 lakhs
    Durand Cup Rs. 20 lakhs
    Federation Cup Rs. 15 lakhs
    U-19 I-League Rs. 0 (Rs. 2.5 lakhs appearance money)
    Odafa Okalie Rs. 2.5 crores

    As the table shows, Indian clubs can make at most Rs. 1 crore if they win every big tournament, which is impossible. Money offered by AIFF for other expenses is also pitifully low. During Federation Cup, India’s most important Cup competition, players were allowed a daily allowance of Rs. 200 and food allowance of Rs. 100! Dearth of prize money makes clubs over dependent on sponsors. Once a sponsor decides to move out, the club gets into financial trouble. And nobody can blame the sponsors for moving out. The main goal of sponsors should be financial profit and promotion of themselves. However, since clubs make negligible profits the sponsors don’t make any profit and register losses. UB group can get good mileage by sponsoring Mohun Bagan and East Bengal because of both clubs’ mass appeal but what about a club like United SC or Mumbai FC? These clubs are still struggling to build a fan base and backing them doesn’t guarantee publicity for a sponsor.

    somnath... I-League Rs. 50 lakhs .. Is it the prize money for I league champion..?
    Till now, I am thinking it is 1 crore.. <!-- s:angry-screaming: --><img src="{SMILIES_PATH}/angry/screaming.gif" alt=":angry-screaming:" title="Screaming" /><!-- s:angry-screaming: -->
    munna219777
  • munna219777munna219777 25866 Points
    How do Football Clubs make money ?

    1)  Broadcasting Rights

    2)  Match Day Revenue by selling tickets

    3) Sponsorship deals

    4) Merchandise selling

    5) Transfer money by selling players. Clubs can earn profit by developing junior players.

    6) Prize Money by participating in various leagues, tournaments like I-league, AFC Cup.

    In simple language, these are the six basic fields - India or abroad.

    Clubs are the backbone of Football in every part of the world. It is the duty of Association to provide conducive environment in these 6 basic fields so that clubs can thrive.
    If clubs are closing down due to financial issues, we need to look at these 6 basic fields - whether or not Association helped them or created a proper structure for clubs !!
    NagendraG_K
  • mohammed_87hassanmohammed_87hassan Sumeet Passin FC Jupiter9545 Points
    No clubs make money. Best bet is to sell players to I-League clubs and make money like CCFC.

    ISL clubs have 20 crore plus loses every year and will take a long time to break even untill they are smart with spending
    munna219777
  • NagendraNagendra Rajahmundry, A.P5258 Points
    edited July 2020
    @ munna. 

    Nice fishing...

    It is good to know I'm the last one to comment in this thread 😎


    munna219777
  • NagendraNagendra Rajahmundry, A.P5258 Points
    @ Hassan.. Indian clubs might be exception. Football clubs do make money , but most of the clubs operate with passion & looks to excel.

    For example, clubs like Arsenal,  Liverpool & Spurs makes profits each year. But they invest in new players, stadium expansion & so on. I guess Arsenal still clearing loan for their stadium. 
    munna219777
  • thebeautifulgamethebeautifulgame Durgapur,India25897 Points
    Yes, @Nagendra you were the last to comment in this thread but in your earlier avatar @phanik1234 ;) ;) ;) .

    It is good to see old threads being revived and useful discussions taking place there!

    Nagendramunna219777
  • G_KG_K Kerala3832 Points
    In India, I guess sponsorship money is the main source of income. Matchday revenue are way too little. Not a single club broke even.

    Prize money and travel subsidy in AFC Competitions is a very good source, but clubs are struggling there, either because some teams are not good enough or the teams don't take it seriously. 

    The prize money for Zonal Champions (winning the group in our case) this year is USD 100,000. The overall Runner-up will get $750k & winner $1.5mil. In addition, you get $40k for every away match.
    munna219777Nagendrakartik91
  • mohammed_87hassanmohammed_87hassan Sumeet Passin FC Jupiter9545 Points
    @Nagendra I was talking about India only

    TV money is biggest source of income for Football clubs around and you don't have that in India. Sponsorship etc is minimal and clubs don't really make money through selling tickets.

    ISL would never really be successful in financial aspects other football clubs around world are. 
    Nagendra
  • munna219777munna219777 25866 Points
    Out of the 6 points I mentioned above, barring point 5, all other points can relate to National Team also.

    For many Federations, their National Team is a money spinner. Their international Friendlies are planned in advance. Federation spend money earned from National team in development of the game, junior teams etc.

    Boradcast deal, Ticket Revenue, Merchandise, for international games on FIFA Friendly match dates are important.

    AIFF has overlooked international games. If you do not host other teams, you will not get invitation from foreign countries to play.  

    National Team should be looked as a money making entity - this will help in promoting the game.


    Nagendra
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