ISL Clubs Warn Of Operational Collapse As AIFF-FSDL Deal Nears Expiry

Twelve Indian Super League clubs have issued an urgent appeal to the All India Football Federation (AIFF), warning that the deteriorating commercial situation around the league is pushing them towards a point where day-to-day operations may no longer be financially viable.

Their letter, sent on Thursday to AIFF president Kalyan Chaubey, stressed that Indian domestic football cannot afford further delays in decision-making.

The alarm arises from the expiration of the Marketing Rights Agreement (MRA) between the AIFF and its long-time commercial partner, Football Sports Development Limited (FSDL).

The agreement, which is the backbone governing ISL’s commercial structure, ends on December 8, leaving the country’s top-tier league without a revenue model or strategic framework for the upcoming cycle.

Clubs Say Revenue Evaporated Totally

In the letter, the clubs said that they have continued paying player wages and staff salaries “in good faith”, but the disappearance of central revenue following the MRA’s expiry has left them exposed.

The group argued that they are moving from a challenging environment into one that is “nearing commercial impossibility and risks rendering ongoing operations untenable”.

For more than a decade, the letter said, the ISL teams have accepted significant financial losses while still investing heavily in infrastructure, player development and youth systems.

In this, they were supported by predictable league structures and guaranteed income from centralised rights. With that stream now gone, sponsors have paused or withdrawn commitments, leaving clubs with commitments to honour but virtually no income.

The signatories to the letter include FC Goa, Sporting Club Delhi, NorthEast United, Jamshedpur, Bengaluru FC, Mohun Bagan Super Giant, Chennaiyin FC, Mumbai City FC, Kerala Blasters, Punjab FC, Odisha FC and Mohammedan Sporting, with newly promoted Inter Kashi also joining the representation.

Call For Action Before Supreme Court Deadline

The clubs urged the AIFF to work with the central government to ensure that a clear remedial plan is submitted to the Supreme Court by December 8, noting that the viability of the ISL and Indian football’s broader ecosystem hinges on urgent steps.

They warned that a delay beyond this date could inflict “irreversible harm” on the structure built over the past eleven years.

They also highlighted their Interim Application filed before the Court, requesting the removal of commercial constraints unintentionally embedded into the AIFF Constitution. These include clauses such as Articles 1.21, 1.54 and 63, which they say have made the tendering process unworkable.

Furthermore, the clubs argued that the AIFF already possesses the internal authority to amend obstructive statutes without waiting for judicial instruction, and urged the federation to do so swiftly, in consultation with the government if required, to protect the sport during this sensitive period.

AIFF Response And Next Steps

In its reply, the AIFF stated that it has forwarded the clubs’ communication to the Sports Ministry and will put in “all possible effort” to design a stable, long-term model for Indian football. The federation also confirmed that KPMG has been tasked with exploring possible solutions, including the option of issuing a fresh tender.

The urgency follows a failed tender attempt earlier this year, which drew no bidders for the league’s commercial rights. Should a new tender also fail, the clubs have proposed a fallback.

It involves forming a club-led consortium, jointly with the AIFF and aligned investors, to own and operate the ISL. They noted that such structures are widely used in major football markets around the world.

If the AIFF chooses to restart the tender process, the clubs said this must only happen after constitutional hurdles are cleared to ensure that the process is legally sound and commercially viable.

They also insisted that any tender window be strict, time-bound and non-extendable, concluding well before the end of the month so the current season can be salvaged.

While a re-tender may offer short-term relief, the clubs emphasised that Indian football now requires a permanent, structural solution rather than temporary fixes.

The AIFF is scheduled to hold its Annual General Body Meeting on December 20, where several of these issues are expected to surface prominently.

(With PTI Inputs)