Parth Jindal writes to Nita Ambani “the league in fragile financial situation”
ISL Business Model – Bengaluru FC owners write to Nita Ambani: Indian Super League finances are not working for one of the most professional football clubs in Bengaluru FC. According to club promoter Parth Jindal, the ISL franchise is losing over Rs 25 crore plus each season. Jindal wrote a letter to ISL founding president Nita Ambani saying the league is in “a fragile financial position,” according to a report by The Indian Express.
Jindal pointed out to Ambani that “Losses have increased dramatically” for the Bengaluru franchise due to the COVID-19 pandemic. The losses this season have been worse, he said. “Advice and guidance” About that.
“Today I don’t know how franchises like BFC will become profitable or even profitable and I would like to deliberate and understand with the other team owners what the future holds for us”, Jindal wrote.
Jindal, whose team won the 2017-18 ISL title, also said the Reliance Foundation suspending the youth grant (up to Rs 2 crore) to teams had been a “blow”. He added that it was difficult for the club and JSW Sport to “Justify and bear the losses suffered”.
The current Indian Super League season kicked off on November 20 in Goa and is being staged in a bio-secure bubble due to COVID-19 protocols in place. Matches also take place without the presence of spectators in the stadiums.
“Not having ticket revenue, losing sponsorships as well as the additional costs of maintaining the COVID bubble have resulted in a dramatic increase in losses. Since we joined the ISL, we have lost over Rs 25 crore each season and this season the numbers are even worse ”, Jindal wrote.
Jindal also questions TV rights deal with Star Sports
Jindal also raised questions about the Indian Super League deal with Star Sports. One of the main sources of income for ISL is the sale of television rights. However, the ISL has encountered a hurdle in this case as Star Sports, its broadcaster, is also a co-owner of the league. Ambani launched ISL in 2014 I partnership with Star Sports. The league was granted the status of India’s premier soccer league by the Asian Football Council in 2019.
Bengaluru FC are not the only club feeling the brunt of the financial pressure. In 2019, the city of Pune closed due to financial problems and in the same year the Delhi team moved their base to Odisha to cut their losses.