Indian Football League in crisis after Tata Steel exit
Mumbai: Tata Steel's decision to withdraw Jamshedpur FC from the Indian Super League has put the spotlight on the league's commercial viability, with media-rights value
Mumbai: Tata Steel's decision to withdraw Jamshedpur FC from the Indian Super League has put the spotlight on the league's commercial viability, with media-rights value falling sharply and several major corporate stakeholders either exiting or reconsidering their involvement in Indian football, industry officials said.The ISL's media rights value has fallen from ₹275 crore a year paid by JioStar to ₹8.6 crore offered by FanCode for the 2025-26 season. JioStar had bid ₹5 crore for the property. FanCode and Sony Sports Network broadcast the league after intervention by the sports ministry helped facilitate the staging of the season, with the organisational burden falling disproportionately on the clubs.The developments come amid a broader restructuring of the league. Manchester City owner City Football Group exited Mumbai City FC last year, while Football Sports Development's 15-year commercial agreement with the All India Football Federation ended following a prolonged impasse over the league's commercial structure last year.
FSDL had proposed shifting to a joint ownership model through a holding company, with clubs owning 60%, FSDL 26% and AIFF 14%. The proposal was not accepted by the AIFF.133134764Market estimates suggest that FSDL, the clubs and the wider football ecosystem have collectively invested heavily over the past 15 years while incurring losses of more than ₹5,000 crore."Jamshedpur Football Club would like to confirm that it will not be participating in ISL from 2026-27 season onwards. JFSPL remains committed, in other capacities, to the continued growth and development of football in India," Jamshedpur FC said in a statement.A sports management CEO said governance and a lack of transparency in decision-making were among the biggest challenges facing Indian football."If corporations don't see a return on investment in football, why will they invest in it?" the CEO said, noting that none of the key stakeholders, FSDL, clubs and JioStar, the media rights partner, made money.
The previous commercial rights holder, FSDL, owned by Reliance Industries, invested heavily during its 15-year partnership with the AIFF, which included ₹700 crore in commercial rights fees. In 2023, FSDL signed a broadcast deal with Viacom18 Media, now part of JioStar, valued at ₹550 crore for the 2023-24 and 2024-25 seasons."The exit of a reputed company like Tata Steel is deeply concerning. Dempo has also indicated that it is reconsidering its involvement in the Indian Football League. The knock-on impact of such exits could be harder to gauge, as groups considering investing in Indian football may now develop cold feet," said Shaji Prabhakaran, president of the Association for Sports Industry Professionals and former general secretary of the AIFF."There is a need to bring all stakeholders together, particularly those putting their money into the game. Indian football needs a clear, long-term roadmap to create stability, attract investment and move the sport forward," he added."Big corporates are exiting the ISL because they no longer see enough progress or long-term value in the league.
The BriefWire