The All India Football Federation (AIFF) is navigating a severe financial shortfall, with a deficit of Rs 25.9 crore recorded up to June this year. This crisis has forced the national football body to consider cutting down a significant portion of its operations until it secures a new commercial partner.
The End of a Crucial Revenue Stream
For years, the AIFF largely depended on the Rs 50 crore it received annually from its marketing partner, Football Sports Development Limited (FSDL), a Reliance subsidiary. This payment was made in exchange for the commercial rights to all leagues and the national team. However, this 15-year Master Rights Agreement (MRA) concluded on December 8 last year, abruptly ending this primary revenue source.
The funds from the MRA were traditionally received in four equal installments of Rs 12.5 crore each. A senior AIFF official highlighted the unusual timing, noting that the contract concluded mid-season. The federation is now missing payments for the January-March and April-June quarters, along with funds for most of December.
Current Financial Standing and Hard Choices
As per the balance sheet presented at the AIFF general body last month, the federation's immediate bank balance stands at Rs 19.9 crore. It also holds fixed deposits and bonds worth Rs 21.6 crore. While FIFA provides approximately Rs 9 crore, this money is earmarked for specific projects and cannot be used for general operations.
The official stated that all existing funds for the current year are already allocated. To manage the Rs 25.9 crore revenue gap, the AIFF may have to suspend about a quarter of its activities. The official admitted the federation lacks the financial capacity to own and operate the top-tier league independently. For the I-League as well, the AIFF is seeking a long-term agreement where clubs would own the league, a model it hopes to implement this season.
League Ownership Standoff and Club Demands
The situation is complicated by a standoff with clubs regarding the top league's format and financial model. The AIFF's new constitution mandates that the federation should own and operate the premier league. However, without a commercial partner or broadcaster, clubs are demanding clarity.
In a significant move, 13 out of 14 clubs (excluding Jamshedpur FC) recently stated they might participate in the 2025–26 season only if certain conditions are met. These include clear financial responsibility, cost allocation, a time-bound roadmap, and government support to reduce costs. The clubs insist that until commercial rights are monetized, the AIFF, as the rights holder, should bear the league's organizational costs for the upcoming season.
A club CEO emphasized the need for transparency, urging the AIFF to clearly state what financial contribution it can make. If the federation cannot support the league financially, the clubs need to know so they can plan accordingly.
Should the AIFF decide to utilize its fixed deposits to fund league operations, it would require a multi-level approval process involving its finance committee, executive committee, and finally the general body, making it a complex and time-consuming solution.
