ISL Commercial Model – Bengaluru FC owners write to Nita Ambani: The Indian Super League’s financials is not working out for one of the most professional football club Bengaluru FC. According to the club promoter Parth Jindal, ISL franchise is losing over Rs 25 crore plus each season. Jindal has written a letter to ISL Founder Chairperson Nita Ambani, that the league is in a ‘fragile financial position’ according to a report by The Indian Express
Jindal pointed out to Ambani that “losses increased dramatically” for the Bengaluru franchise due to the COVID-19 pandemic. The losses incurred this season have been worse, he said.He cited lack of ticketing revenue, losing sponsorship and additional cost of maintaining the bio-bubble as reasons, and sought Ambani’s “counsel and guidance” on the matter.
“Today, I am not aware how franchises like BFC will become profitable or even break even and would love to deliberate and understand along with the other team owners what the future holds,” Jindal wrote.
Jindal, whose team won the 2017-18 ISL title, also said that Reliance Foundation suspending the youth subsidy (of up to Rs 2 crore) to teams has been a ‘severe blow’. He further said that it was difficult for the club and JSW Sport to “justify and sustain the losses being incurred”.
The current season of the Indian Super League started on November 20 in Goa, and is being organised in a bio-secure bubble due to the COVID-19 protocols in place. Matches are also being staged without the presence of spectators in stadiums.
“Not having ticket revenue, losing out on sponsorships as well as the additional costs due to maintaining the COVID bubble have resulted in losses increasing dramatically. Since we have joint (sic) the ISL we have been losing in excess of Rs 25 crores every season and this season the numbers are even worse,” Jindal wrote.
Jindal also questions Television Rights deal with Star Sports
Jindal has also raised questions over the Indian Super League deal with Star Sports. One of main sources of income for the ISL is selling the television rights. However, the ISL has hit a roadblock in this matter as Star Sports, its broadcaster, is also a co-owner of the league. Ambani launched ISL in 2014 I partnership with Star Sports. The league was granted the status of being India’s premier football league by the Asian Football Council in 2019.
Bengaluru FC is not the only club to feel the burden of the financial strain. In 2019, Pune City shut shop due to financial problems and in the same year, the Delhi team shifted its base to Odisha to cut its losses.
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