New Delhi: The All India Football Federation’s already stretched coffers could take a further blow if a rather unusual request from its I-League commercial partner to waive off Rs 2.5 crore is accepted.
In December last year, the AIFF signed a commercial rights agreement for I-League, I-League 2, Indian Women’s League, Santosh Trophy and Rajmata Jijabai Trophy (senior women’s national championship) with Shrachi Sports Endeavour Pvt Ltd for the production and broadcast of 338 matches in the 2024-25 season.
As per the agreement, Shrachi was due to pay Rs 2.5 crore in four instalments, each amounting to Rs 62,50,000 (25 percent).
The first instalment was agreed to be paid on “execution of the agreement”, followed by the second one “no later than seven days prior to the commencement of the first competition of the season scheduled under this agreement”.
The deal was signed in the presence of the AIFF president, Kalyan Chaubey, and reported on the official website of the AIFF on December 2, 2024, but the federation never pressed for the payment due on “execution of the agreement”. The second instalment, too, remained unpaid, even though the season kicked off in the right earnest.
The third instalment was to be made “within seven days of the completion of fifty per cent (50%) of the matches of the season” while the fourth and final one was to be paid “no later than seven days prior to the commencement of the last competition of the season”.
Senior men’s and women’s club leagues and national championship matches were agreed to be streamed on the SSEN app, while 110 of the 132 I-League matches were to be broadcast live on Sony Sports Network.
Challenges faced
Not only were these conditions never fully met as the season concluded in April, but Shrachi is yet to pay any of the four instalments, despite being sent a reminder.
Instead, through a letter, they have requested the federation to waive off the entire amount, claiming a loss of around Rs 1.50 crore.
“We have fulfilled all contractual obligations but faced some infrastructural issues leading to the absence of live feed in some matches. We have informed the AIFF about the challenges faced in delivery. Now it is up to them to consider it,” a Shrachi official told News9 Sports, preferring not to be named as the matter is under consideration.
“Time is an essence in relation to the Right Holder’s payment obligations hereunder. Interest shall be payable by the Rights Holder to the AIFF on any late payments of any amount including any instalment of the Rights Fee at a rate of twelve per cent (12%) per annum,” it is written in the agreement paper.
“All payments under this Agreement herein shall be due on the dates specified herein from the Rights Holder from the AIFF, irrespective of the receipt of an invoice from the AIFF.”
At its executive committee meeting on Wednesday, the AIFF formed a three-member panel to deliberate and review the request, while an Ex Co member proposed to extend the deal with a high concession so that they make up for the losses incurred this season.
It was met with objection from certain members who wondered why such favours were being considered for the company that has defaulted on payments at a time when the AIFF is in dire need of funds.
“Why didn’t the AIFF ask for the 25% signing-on amount and the second instalment as per the deal?” a member wondered.
The newly formed committee is expected to take around a month to review the request of Shrachi and then recommend a way forward.
But how such a request was accepted is being questioned by members, particularly when the federation is looking at ways to curtail costs, even thinking of breaking its fixed deposit to fulfill commitments.
Due to its ongoing deadlock over master rights agreement with its marketing partners Football Sports Development Limited, for which the federation is yet to receive the April instalment of Rs 12.5 crore, the AIFF could only approve a budget till December, amounting to Rs 31.07 crore.
“We have set the budget till the time we are assured of money from our marketing partners,” an AIFF official said.
Should the request by Shrachi be accepted, it would leave the AIFF poorer on two fronts, as it is obligated to pay Rs 62.50 lakh (25 percent of the total amount of Rs 2.50 crore) to FSDL as per agreement.
“The entire episode shows that something strange is going on from the very beginning of the deal,” a person aware of the development said, pointing out that president Kalyan Chaubey had once vouched for the integrity of the company.
Recommendation to decrease foreigners
With the national team desperately short of goal scorers, which contributed to only a win in eight matches under the departed head coach Manolo Marquez, the executive committee had proposed a reduction of overseas players from the I-League and the Indian Super League.
While the AIFF would have to make the clubs agree for only three foreigners to be in the playing XI and five for registration from next season, they would have to convince FSDL for it to be implemented in the ISL.
“As this suggestion has come, there is no harm in requesting them,” the official pointed out, adding that an earlier plan of fielding an all-Indian U-23 team in the I-League would again be explored.
While no decision was taken on I-League clubs’ request for clemency over club licensing fines, it was decided that the status quo would be maintained regarding the interim stay order on relegation, with the Ex Co abiding by what the appeal committee eventually decides after reserving its judgement following a couple of hearings.
The championship hinges on the verdict of Court of Arbitration for Sport in a case involving Inter Kashi’s re-registration of their foreigner Mario Barco after the appeal committee judged that it didn’t comply with I-League regulations.
In a separate case, CAS had overturned the appeal committee’s judgement to deduct three points from Kashi in their match against Namdhari FC over fielding of an ineligible player.