Indian football clubs are facing an unprecedented crisis in 2025. For a staggering 215 days, no football has been kicked in an Indian Super League match, representing 59% of the calendar year without top-flight football action . This prolonged shutdown has created severe consequences across the sporting landscape.
Unfortunately, the situation with the football Indian Super League today has deteriorated further. Following the July 11 decision by FSDL to put the 2025-26 season “on hold” due to uncertainty surrounding the Master Rights Agreement renewal , three clubs have either paused first-team operations or suspended salaries of players and staff . Specifically, defending champions Mohun Bagan Super Giant dropped a bombshell by suspending all first-team operations until clarity returns . Additionally, the AIFF’s latest tender for the Indian Super League—launched on October 16—ended in stunning silence without a single bid .
In this article, we’ll examine the fragile foundation of Indian club football, explore what led to the collapse of the ISL agreement, and investigate the ripple effects across the entire football ecosystem. We’ll also propose potential solutions by looking at successful models like cricket’s BCCI blueprint.
Table of Contents
The Fragile Foundation of Indian Club Football
Behind the glitz and glamor of the Indian Super League lies a precarious financial reality that threatens the very existence of Indian football clubs. Unlike established global leagues, Indian football has built its foundation on shifting sands rather than solid bedrock.
Overreliance on private capital and sponsorships
Most ISL clubs bleed money at an alarming rate—losing approximately ₹25-30 crore each year [1]. This financial hemorrhage continues despite a decade of operation, with clubs depending almost entirely on their owners’ deep pockets. The business model remains fundamentally broken, with central revenue distribution woefully inadequate at just ₹13-16 crore per club annually [2].
Instead of creating self-sustaining entities, clubs have become perpetual money pits. Operating costs have ballooned to nearly ₹60 crore per season [2], while local revenues remain weak. Nevertheless, when sponsorship deals falter, the entire club ecosystem faces immediate jeopardy.
Lack of grassroots investment and youth development
Perhaps the most troubling structural flaw involves youth development. While leading football nations begin training children at age six, Indian academies typically admit players at age 12—missing critical developmental years [3]. This six-year gap creates an insurmountable disadvantage on the global stage.
Moreover, of 94 AIFF-accredited academies, only 10 have consistently participated across all age groups over the past decade [3]. Arsenal legend Sol Campbell highlighted this problem, noting that “any country looking to develop the game needs… funds to go into the grassroots to cultivate the new blood, new quality players” [4].
Franchise model vs. sustainable league structure
The current franchise model creates another layer of instability. Each ISL club must pay approximately ₹12 crore annually just to participate in the league [5] – a system that one executive called “counter-intuitive” since leagues should generate revenue for member clubs rather than extracting it [5].
Meanwhile, the absence of promotion and relegation has turned Indian football into what former club owner Ranjit Bajaj describes as a “gated community” [1]. Clubs succeed through financial might rather than sporting merit, with decorated teams like Dempo FC locked out of top-tier competition regardless of performance.
This closed system fundamentally undermines competition and innovation—essential elements for any thriving football ecosystem. Without structural reform addressing these foundational weaknesses, Indian football’s crisis will persist beyond the current impasse.
The Collapse of the ISL Agreement
The heart of Indian football’s current paralysis lies in the unraveling of a 15-year commercial relationship that once promised stability. This contractual collapse has created a vacuum in which Indian football clubs now struggle to survive.
What the Master Rights Agreement covered
At its core, the Master Rights Agreement (MRA) signed in 2010 between the All India Football Federation (AIFF) and Football Sports Development Limited (FSDL) was a comprehensive 15-year, Rs 700 crore contract [6]. This agreement granted FSDL exclusive commercial, marketing, and broadcasting rights to manage the football Indian Super League [6].
Under the MRA, FSDL paid the AIFF Rs 50 crore annually [7], providing essential funding for federation operations and development initiatives [8]. In return, FSDL gained control over broadcasting, league management, and commercialization of Indian football, including national team activities [8].
Originally, FSDL’s ownership structure included Reliance Industries (55%), Star India (35%), and IMG (10%) [9]. However, IMG exited in 2018, with Reliance increasing its stake to 65% [9]. Throughout its tenure, FSDL held significant decision-making power within Indian football’s ecosystem.
Why FSDL pulled out
FSDL formally announced on July 11, 2025, that it was putting the 2025-26 ISL season “on hold” [10]. The primary reason was the impending December 8, 2025 expiration of the MRA, which would occur approximately one-third through a typical season [10].
Essentially, FSDL cited the “absence of a confirmed contractual framework beyond December” as making it impossible to “effectively plan, organize, or commercialize” the upcoming season [8]. This uncertainty stemmed primarily from a Supreme Court directive issued on April 26, 2025, which barred the AIFF from entering into long-term agreements [11].
Furthermore, discussions about a potential new structure had been ongoing, including a proposed model with 60% equity ownership for clubs, 26% for FSDL, and 14% for AIFF [8]. However, these negotiations remained inconclusive.
AIFF’s delayed and ineffective response
The AIFF’s handling of the MRA renewal revealed troubling organizational deficiencies. Although the federation claims to have initiated renewal discussions in November 2024 [12], the first meeting with FSDL officials occurred only in February 2025 [12], just ten months before expiration.
Consequently, after the Supreme Court’s intervention, the AIFF attempted to salvage the situation by floating an open tender for a new commercial partner [5]. However, the Request for Proposal (RFP) demanded an unrealistic minimum guaranteed payment of Rs 37.5 crore annually or 5% of gross revenue [5][13].
Additionally, the tender offered potential commercial partners just one seat on the ISL’s six-member governing council [14], severely limiting their decision-making authority despite bearing financial risks. Unsurprisingly, when the submission window closed on November 7, not a single bid materialized [13], leaving the Indian Super League today in unprecedented limbo.
The Ripple Effect Across the Football Ecosystem
The paralysis gripping Indian football has cascaded far beyond the boardroom, shattering lives and livelihoods throughout the sport’s ecosystem. This systematic collapse reveals the fragility of the entire football pyramid in India.
Clubs halting operations and suspending salaries
As the uncertainty drags on, several Indian football clubs have taken drastic measures. Reigning champions Mohun Bagan Super Giant indefinitely suspended all first-team operations [15]. Bengaluru FC stopped paying salaries to its entire first team’s players and staff [16], while Kerala Blasters also shut down first-team activities [17]. Players now fear extended delays will trigger force majeure clauses, leaving them without income [17].
Impact on Indian Super League today and I-League
The ripple effects extend to India’s second-tier competition, where AIFF’s budget allocation for the I-League has fallen 33% in just three years, from ₹15.1 crore to ₹10.18 crore [18]. I-League clubs were collectively fined around ₹2 crore for licensing breaches [18]. Even more troubling, eight clubs from this league have shut down since 2014, including former champions Salgaocar FC and Chennai City FC [18].
National teams and women’s football in jeopardy
India’s national team suffered a shock 0-1 defeat to Bangladesh, their first loss to their neighbors in over two decades, contributing to their slide to 142nd in FIFA rankings [19]. Women’s football faces particularly severe challenges; the promised Indian Women’s League (IWL) starting in September now remains in limbo [17].
Referees and support staff facing job loss
In this crisis, match officials also struggle. Globally, one in seven match officials quit yearly due to abuse [20], with 93% of football referees reporting verbal abuse and almost 20% experiencing physical assault [21]. Important to realize, around half of all referees surveyed are actively considering leaving the profession [21].
Rebuilding Indian Football: Lessons and Solutions
As the crisis deepens, a blueprint for revival may already exist within India’s sporting landscape.
Can football learn from cricket’s BCCI model?
The BCCI has mastered turning sport into a self-sustaining ecosystem through centralized media deals, transparent revenue sharing, and consistent grassroots investment [22]. Certainly, this blueprint offers guidance without requiring cricket’s financial intervention.
Need for centralized revenue and media rights
Firstly, Indian football must shift from fragmented sponsorships to pooled resources. The IPL thrives because teams know what to expect—revenue flows steadily and media rights remain secure [22]. In fact, this centralized approach could replace the failed model where clubs rely on private capital and vague promises.
Ensuring financial safety nets for clubs
The new framework should guarantee financial stability for clubs, encouraging long-term investment rather than perpetual loss-making [22]. East Bengal executive committee member Debabrata Sarkar believes proper financial support could change everything within five years [23].
Transparent governance and stakeholder alignment
The Supreme Court has emphasized that sporting bodies are “institutions of national life” whose administration must be founded on transparency, accountability, and democratic values [24]. Similarly, Justice Rao’s committee noted football’s pyramidical structure necessitates a constitution incorporating age and tenure limits, cooling-off periods, and robust conflict-of-interest rules [24].
Through these reforms, Indian football clubs can begin rebuilding stability—not as borrowed ideas, but as a homegrown revival.
Conclusion
The current crisis gripping Indian football represents far more than a temporary setback—it threatens the very future of the sport in our country. Undoubtedly, the collapse of the Master Rights Agreement has exposed fundamental flaws that existed long before this particular breaking point. Most clubs were already losing ₹25-30 crore annually despite a decade of ISL operation, highlighting a broken business model rather than a sudden failure.
However, this crisis also presents an unprecedented opportunity for meaningful reform. Football administrators must recognize that without structural changes addressing revenue distribution, grassroots development, and governance transparency, any new commercial arrangement will eventually face similar challenges. The empty response to AIFF’s tender speaks volumes about the lack of confidence in the current system.
Therefore, adopting elements from cricket’s successful model appears not just advisable but necessary for survival. Centralized media rights, consistent revenue sharing, and financial safety nets could transform Indian football clubs from money pits into sustainable enterprises. Additionally, a promotion-relegation system would inject genuine competition while aligning stakeholders around shared goals.
Above all, this reformation requires putting players and fans at the center of decision-making rather than treating them as afterthoughts. Indian football possesses immense untapped potential—passionate supporters, talented youth, and rich heritage. The path forward demands courage to abandon failed approaches and embrace proven solutions that can restore dignity to the beautiful game in India.
Though the challenges seem overwhelming, football has survived previous crises through innovation and collaboration. The question remains whether Indian football’s leadership will seize this moment to build something truly sustainable or simply attempt to restore the same fragile structure that has already collapsed.
Key Takeaways
Indian football’s 2025 crisis reveals deep structural problems that demand immediate reform to save the sport from complete collapse.
- Financial model is fundamentally broken: ISL clubs lose ₹25-30 crore annually despite decade-long operations, relying entirely on private capital rather than sustainable revenue streams.
- Commercial partnership collapse created chaos: FSDL’s withdrawal from the Master Rights Agreement left clubs without funding, forcing salary suspensions and operational shutdowns across multiple teams.
- Grassroots development severely lacking: Indian academies start training players at age 12 versus age 6 globally, with only 10 of 94 AIFF-accredited academies consistently participating across age groups.
- Centralized revenue model offers salvation: Following cricket’s BCCI blueprint with pooled media rights, transparent revenue sharing, and financial safety nets could transform clubs from money pits into sustainable enterprises.
- Governance reform is non-negotiable: The Supreme Court’s emphasis on transparency and democratic values must guide restructuring, including promotion-relegation systems and stakeholder alignment around shared goals.
The path forward requires abandoning failed franchise models and embracing proven solutions that prioritize players, fans, and long-term sustainability over short-term commercial interests.
References
[12] – https://www.the-aiff.com/article/aiff-statement-33
[23] – https://www.timesnownews.com/sports/football/if-bcci-supports-indian-football-for-5-years-it-can-change-everything-east-bengal-official-explains-why-exclusive-article-153139958 [24] –https://thelegalchamber.in/transparency-in-football-supreme-court-upholds-key-reforms-for-aiff-applies-bcci-like-principles/
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