ISL clubs will have to pay a percentage of their revenue to the FSDL from the coming season, with their 10 year agreement to pay around ₹15-20 crore now coming to an end. This agreement will only consist of clubs that have been a part of the league since its inception, and will exclude teams like East Bengal, Punjab FC, Bengaluru FC and Jamshedpur FC.
The new revenue model was a part of the original agreement and is not a new decision made by the governing bodies of the league. The altered agreement is expected to better place the clubs towards financial sustainability in the coming years.
ISL clubs to offer percentage of revenue to FSDL yearly
It is very important to note that this model will only be applicable to the founding clubs of the league at the outset.
Currently there is a master agreement between the ISL teams and the FSDL. Discussions are going on to decide the final amount of the new revenue model. And how and when the new revenue model will come into force remains to be seen.
ISL clubs have often been seen making losses. It is worth noting that in the early years of the ISL, no franchise managed to achieve a pre-tax profit, indicating the financial challenges faced by the clubs. Even the 2017 ISL Champions, Bengaluru FC, reported significant losses of ₹25 crores in each ISL season. Furthermore, between 2014 and 2020, the total debt among the clubs surged by 212%, rising from ₹26.45 crores to ₹82.43 crores.
This season, Hyderabad FC’s problems have really brought the financial difficulties to the forefront, and the new model is expected to offer some respite to these clubs so that they can manage their funds more comfortably in the years to come.
The clubs part of the agreement with Star Sports and the FSDL will only have to pay the fees. Mohun Bagan SG have been included since they were once playing under the ATK banner, and were then merged with the historic side.
