ISL: Report to SC favours more viable commercial framework

A Supreme Court report recommends restructuring AIFF's commercial framework, reducing payment guarantees, and allowing partners to manage broadcasting rights.

Kolkata: Reduce the minimum guaranteed payment, reconstitute the governing council, restructure the veto power of All India Football Federation (AIFF) and remove restrictions on the commercial partner managing broadcasting rights. These were among the salient recommendations of retired Supreme Court judge L Nageswara Rao to the apex court after AIFF’s search for a 15-year commercial partnership deal for its top league drew a blank.

In the last few weeks, ISL clubs and players have been expressing how they have been affected by the league not starting. (ISL)

Appointed by the Supreme Court to oversee the bidding process, Rao’s report, submitted on November 12 and made public on Wednesday, says it seeks to preserve AIFF’s regulatory role while making “the commercial framework more viable, and attractive to prospective bidders”.

“ISL holds a position of central importance within the structure of Indian football. As the senior-most national league, it serves not only as a platform for professional competition but also as a driver of player development and institutional growth of football in India,” the report says. HT has seen the report.

“In this background, ensuring the continued stability and successful conduct of the ISL through a sustainable and transparent commercial model assumes particular importance.”

The recommendations were framed following feedback from the prospective bidders who, between them, had asked 234 questions on the AIFF’s Request For Proposal (RFP) issued on October 16.

The minimum guaranteed payment of ₹37.5 crore or 5% of gross revenue whichever was higher, as listed in the RFP, was “widely viewed as being on the higher side…limiting the commercial feasibility for potential bidders.” It needs to be restructured or “reasonably reduced,” the report has said.

The bid document was prepared by one of the world’s top accounting firms and was done after speaking to 10 ISL clubs.

The league’s governing council, which has six members but only one from the commercial partner, needs to be reconstituted, “to provide the commercial partner with equal representation,” the report said.

Stating that AIFF’s veto power in the governing council can be restrictive, the report suggests AIFF can have regulatory authority with the commercial partners having “operational and commercial control”. The Supreme Court approved constitution adopted by AIFF last month says the top league will be operated by AIFF, leading to prospective bidders backing out.

The commercial partner should also be allowed to independently manage broadcasting rights, the report recommends. This, the report says, would be in line with AIFF constitution if the relevant article is interpreted as being fulfilled when the general body approves the federation’s agreement with a commercial partner. The RFP had mandated an annual general meeting whenever the commercial partner got into an agreement over ₹5 crore.