Will Indian clubs survive once they get relegated?

Investing in the game of football, especially in India is a risky startup.

Which goes for years, every year you invest crores, with no return, no profit until you decide to break out from this relationship.

High investment but no return!

With the emergence of the Indian Super League, running a football club in India became little costlier.

To maintain a certain standard, they owners have to invest alot.

This certainly improves the overall structure of the clubs and the league but it empties the large chunck of the money.

Franchise fee and it's weight on the club is heavy, 15 crores, just to have a permission to play.

Then comes the money to build the team, facilities needed to be provided.

It almost cost 30-40 crores, if you are building a top team.

With no media rights, low support, no own stadium.

You are on the losing streak, where you gamble to play more just to save the commitment.

It is a harsh truth that no club is profitable in the league currently.

BFC owner, Parth Jindal, had said that losses are mounting, with loss of around 20-25 crore  adding up every year.

This is in the case of Bengaluru FC, imagine about the clubs with no money backup and are only sustaining by cost cutting or minimal grants.

Shutting down of Delhi Dynamos FC, with base shifting to Odisha!

Delhi Dynamos is the perfect example of it.

I went couple of times to watch the team play in the stadium.

The club was forced to play in JLN Stadium, Delhi because of the better facilities.

But it is one of the poorest thing which can happen to a club.

JLN with a capacity of more than 60000 people had 10000 people watching the game, many on free passes, subsidised tickets of 100 Rs! 

The cost of operations at JLN for holding that one match is more than the money collected from the ticket sales.

So, no profit from the ticket sales! 

The base was not increasing of the supporters, then many started criticising the club, then it got more weaker.

Losses mounting and no future development happening, club finally shifted to Odisha, after penning a deal with the state government, helping them have the facilities used with less effort and money.

Take an example of the clubs like KBFC, with so much supporters base still making losses.

As the owner said, that they pay more than 9 crores to use the stadium.

25 crore rupees, just to have operations started and without the cost of making a proper team not added up.

You can only imagine the case of clubs like North East United FC.

Shutting down of DSK Shivajians FC, Mumbai FC, Mahindra United FC, the list goes on.

These examples are enough that there is a certain limit to which all these businessmens can put money, after that it's out and out.

Recent example can be taken of East Bengal FC , having a history of 100 years and more, struggled with the investers.

The Quess group, then Shree Cement.

Both the groups accounted losses.

Will these clubs will survive one the relegation starts ?

The chances of survival are high only if they get enough sponsers so money is recovered.

But once you are in the second division, sponsers availability is less, all the money is of the owners and losses are going to me more.

Thus the survival rate is very low.

We can also see the pattern, most of the clubs are not serious in case of AFC rules.

All work on the basis of exceptions and once the rules will become more stricter, more money will be needed !

But, where is the money?

The instances of the past, current wage model, investment and the losses make me fear many heartbreaking ends.

Many clubs will fail in the near future.

The survival will be based on the changes of the revenue system, creating enough to be profitable otherwise the end is near.

The league organising committee and all the other stakeholders have to work together, otherwise "bajegi sitti, udega ball" will become history.

Removal of franchise fees, sharing of stadiums if clubs are from the same city, additional incentives and the growth oriented approach is needed.

The responsibility should be established after from telecasting the matches in the high quality.

Sustainability should be the main target now!

Hopefully, we will see some positive devlopments in this regard, in the near future!