Indian football stands at a critical juncture where long-term sustainability, investor confidence, and competitive integrity must coexist.
The All India Football Federation’s proposed financial and participation framework for its top-tier league presents a detailed attempt to address these challenges through a structured revenue-sharing model, defined operational budgets, and investment protection mechanisms. At its core, the proposal seeks to balance federation oversight with stakeholder participation while retaining the principles of promotion and relegation.
The league, as outlined, will remain wholly owned and operated by the AIFF under the aegis of its new constitution. However, for a fixed term of 20 seasons, the federation proposes to share defined “revenue share rights” with participating clubs and potential commercial partners. This arrangement would run on an annual cycle from June 1 to May 31, after which all revenue shares would revert to AIFF for redistribution or re-tendering.
A central element of the model is the establishment of a predetermined Central Operational Budget. For the inaugural season, this budget is pegged at ₹70 crore and is designed to cover all mandatory requirements, including Premier I licensing criteria and any future licensing obligations. Operational expenses such as production and transmission, marketing, prize money, youth leagues, officiating, integrity measures, and central administration are capped within this budget, ensuring cost certainty for all stakeholders.
The financial modelling outlines a clear breakeven framework. Net revenue distribution only begins after an initial recovery threshold of ₹96 crore, a figure derived from the central operational outlay and associated contributions. Until this point, revenues generated by the league are allocated toward reimbursing participating clubs, AIFF, and any commercial partner for their upfront investments. This structure ensures that no stakeholder begins earning net returns before the league’s core costs are fully recovered.
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Revenue projections are detailed across a range starting from ₹100 crore to ₹400 crore in total league revenue. As revenues increase, the AIFF’s net total rises proportionately, from ₹26.4 crore at the ₹100 crore mark to ₹56.4 crore at ₹400 crore. Similarly, allocations for participating clubs, fixed revenue shares, and commercial partners scale upward in predefined increments. At ₹200 crore in revenue, for instance, the net revenue calculation stands at ₹104 crore, comfortably above the breakeven point, allowing for surplus distribution.
The revenue-sharing formula itself is split into two broad components. Sixty percent of the total revenue is retained within the league’s primary stakeholder pool, with AIFF holding 10 percent outright and the remaining 50 percent distributed equally among participating clubs. This allocation replaces the traditional concept of a league membership contribution, effectively linking club earnings directly to league performance and financial health.
The remaining 40 percent is classified as a Fixed Revenue Share, earmarked specifically for investment protection and commercial participation. Within this segment, AIFF retains 10 percent, while clubs have the option to acquire fixed revenue shares to safeguard a portion of their investment. A potential commercial partner can hold up to 30 percent of this fixed allocation, subject to predefined financial commitments.
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One of the notable aspects of the model is its treatment of relegation. Recognising the contributions made by clubs over extended periods, the framework allows relegated teams to retain their fixed revenue shares even after losing their participation slot, provided they continue meeting their league membership contribution obligations. The size of this retained share depends on tenure: clubs with over eight years of participation can hold up to 1 percent, those with three or more years up to 0.5 percent, and clubs with one to three years up to 0.25 percent of the fixed revenue pool.
In addition, two percent of the central revenue pool is reserved for parachute payments. These payments are capped at one percent per club per season and are applicable for a maximum of two seasons, offering a financial buffer to clubs transitioning out of the top tier.
Participation fees are structured to align closely with operational costs. Each club pays a standard participation fee of ₹1 crore at the start of the season. This fee, however, is not an expense in the conventional sense. It is fully reimbursable from central revenues before any net revenue distribution occurs. The total participation fee pool represents 20 percent of the league’s central operational budget, and any increase in the budget would trigger a proportional increase in participation fees.
The model also defines clear roles and responsibilities in expenditure. Clubs and commercial partners jointly shoulder costs related to production, marketing, prize money, and commercial administration, accounting for 70 percent of the budget. AIFF, meanwhile, retains responsibility for youth leagues, match officials, integrity measures, central administration, legal overheads, and parachute payments. Any savings from the ₹70 crore operational cap are redistributed among revenue share holders, excluding the commercial partner, in proportion to their shares.
Governance under this structure remains firmly within the AIFF’s control, though a board empowered by the federation’s general body would oversee commercial operations. The board’s jurisdiction is explicitly limited to the utilisation of unrestricted funds within the operational budget, ensuring financial discipline while allowing limited autonomy.
Crucially, the league retains its open structure. Promotion and relegation remain integral, distinguishing this model from closed-league franchises and aligning it with global football traditions. Investment protection mechanisms, rather than guaranteed participation, are used to mitigate risk.
Taken together, the proposal represents a comprehensive attempt to formalise Indian football’s top-tier economics. It introduces transparency in cost allocation, clarity in revenue distribution, and structured safeguards for long-term investors, all while preserving competitive merit. Whether the model succeeds will depend not only on revenue growth but also on consistent execution and governance.
What is clear, however, is that the AIFF has placed financial sustainability at the centre of its vision, moving Indian football toward a more predictable and professionally managed future.
