ISL Tender Crisis: SC-Appointed Justice Rao Urges Balance As AIFF's Monetisation Bid Fails

Justice (Retd.) L Nageswara Rao, in his report to the Supreme Court, advised striking a balance between "preserving" the All India Football Federation's (AIFF) authority and safeguarding commercial interests, after the failed tender to monetise the Indian Super League (ISL).

Justice Rao's report follows an invitation from AIFF for bids that drew no response, leaving Indian football facing a big uncertainty. The AIFF had earlier confirmed receiving no bids for the already-delayed ISL commercial rights.

Rao Panel Flags Key Concerns After Tender Failure

The SC-appointed committee led by Justice Rao submitted its findings after the tender for the ISL's commercial rights found no takers, putting the national federation in a difficult position.

Rao, also chairman of the Bid Evaluation Committee (BEC), said his recommendations aim to preserve "the AIFF's regulatory role" while creating a viable commercial framework to renew bidder interest and ensure the timely conduct of the ISL.

Limited representation in the AIFF governing council, minimum guaranteed payment of Rs 37.5 crore annually, decision-making authority, management and sub-licensing of rights have emerged as major points of contention as stakeholders seek clarity for the 2025–26 season.

ISL Tender Dispute Issues Explained

Rao said concerns over the minimum guaranteed payment directly contributed to the absence of bids. He noted that the financial obligations in the Request for Proposal (RFP) may need reconsideration, suggesting a restructuring or reasonable reduction of the annual payment to ensure commercial viability while still safeguarding the AIFF's interests.

He added that such restructuring would help address bidders' worries about disproportionate exposure in the early years and high operational overheads. The other BEC members are AIFF President Kalyan Chaubey and AFC's Kesvaran Murugasu as an independent member.

The prolonged uncertainty around the ISL has already led several clubs to suspend all football activity indefinitely. This includes defending champions Mohun Bagan Super Giant.

On governance, Rao recommended revising the AIFF council structure to create a more balanced arrangement. Interested bidders have stressed the need for meaningful participation in decision-making if they are to bear financial and operational risks. Equal representation for the commercial partner has been proposed.

"Further, the interested bidders have expressed that the proposed veto power for the senior AIFF representative may significantly limit their ability to make timely commercial and operational decision," the report said.

The AIFF issued its RFP on October 16 for a 15-year contract, with a submission deadline of November 7. The proposed structure – with only one commercial-partner representative among six – "was viewed as affording insufficient participation" for taking key league decisions, the report added.

Regarding management and sub-licensing of rights, bidders "expressed concerns" to restrictions on handling broadcasting and allied rights, calling them essential to effective commercial operations.

For 15 years, Indian football has been run by Football Sports Development Limited (FSDL), a Reliance Industries subsidiary that received commercial rights for Rs 700 crore in 2010. FSDL has operated the ISL since 2014, but its 15-year agreement ends on December 8.

Rao's report further noted that, in line with Article 63 of the AIFF Constitution, including Article 63.3, the term "Essential Aspects" may be interpreted to preserve AIFF's primacy over regulatory functions while excluding day-to-day administrative, commercial or logistical league management, which should fall to the commercial partner.

12 ISL Clubs Move Supreme Court

Twelve ISL clubs have filed an application for intervention before the Supreme Court, stating they were compelled by the ongoing crisis that has severely affected the livelihoods of players, staff and all personnel involved.

They noted that despite multiple SC orders, the AIFF's tender process for commercial partners failed, leaving the league and football calendar in limbo, further delaying the 2025–26 ISL season with no clarity on its start or long-term future.

The application warned that with no revenue structure in sight, clubs face the threat of shutdowns affecting thousands of livelihoods.

The intervening clubs are FC Goa, Bengaluru FC, East Bengal FC, Sporting Club Delhi, Jamshedpur FC, Kerala Blasters FC, Mohammedan Sporting Club, Mohun Bagan Super Giant, Mumbai City FC, Northeast United FC, Punjab FC and Inter Kashi FC.

(With PTI Inputs)