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Interest in Dempo: Can Shah Rukh Khan save the football business in India?

June 10, 2012

Sharukh_Football_Craze

Actually, our association with football has long played out like a match that promised much but displayed only flashes of brilliance.

A brilliant moment would be the inaugural Premier League Soccer in Kolkata last year, but soon after a setback, much like an ugly tackle that breaks the rhythm of play, would arrive in the form of a free fall in rankings. Khan's entry might restore parity to Indian football, say experts.

The reason is that the business of football in India is in a shambles. In the past two years, two clubs - JCT FC and Mahindra United - were disbanded after they became commercially unviable. Incumbents are not faring any better - participants in the I-League, the top-tier Indian club format, are not making money.

Shrinivas Dempo, chairman of the Dempo Group of Companies, says no club in India is even close to a break-even.

Liquor tycoon Vijay Mallya's UB Group is said to be having second thoughts about sponsoring two Kolkata clubs, Mohun Bagan and East Bengal.

Telecom major Bharti Airtel, which once harboured ambitions to develop football in India, is today promoting the game in Africa.

Football


*UB is principal sponsor of Mohun Bagan and East bengal, not a promoter All these teams participate in the I-League, the top-tier club format in India

Poor Business

Owners are still keeping their clubs afloat, but with minimal returns and rising costs, (see Costs of Running an I-League Team) they might as well be investing in a government welfare scheme where the money doesn't reach the needy, according to Prashant Singh, director, Octagon, a sports and entertainment marketing company.


Football__ratio

Former India captain Baichung Bhutia had earlier said more clubs will meet the fate of Mahindra United and JCT unless the All India Football Federation, the game's governing body in India, finds ways to make them better commercial entities. He said the absence of a fanbase was the undoing of those clubs.

On both counts, Bhutia was spot on. India is watching football alright, but it is the foreign kind. Tam research says only 7.8 million watched I-League on TV compared with the 25.8 million who followed the English Premier League in the last season.

The difference is because Indian football is football in slow motion, according to Singh, partly because matches are played on grounds with blades of grass that are 6-8 inches high.

In some I-League matches last season, the turnout at stadia was as low as 50, again a commentary on the quality of the game in India. The low attendance is a big blow to clubs, given that gate revenues form a lion's share of their paltry revenues.

Most clubs are hardly run as commercial enterprises. Unlike in the West, no club in India owns a stadium. Few are ready to host matches. Clearly, the culture of football clubs as they exist overseas is missing in India. Clubs around the world feed their national teams with players. It is the opposite in India.

One reason why JCT and Mahindra United folded was their reluctance to accept sponsorship, according to a person familiar with the matter. Representatives of the groups were unavailable for comment.


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Agencies
March 13,2020

New Delhi, Mar 13: The remaining ODI series between India and South Africa has been called-off amidst the rising concerns over the coronavirus pandemic.

"The second and third ODI between India and South Africa in Lucknow and Kolkata respectively are called off," the BCCI source told media persons.

The first match of the series was abandoned due to rain and wet outfield without a toss at Himachal Pradesh Cricket Association (HPCA) stadium on Thursday.

The second and third ODI was scheduled to be played at Lucknow and Kolkata on March 15 and 18 respectively. Earlier on Thursday, the BCCI has decided to play the remaining two ODIs behind closed doors.

"After holding discussions with the MYAS and MOHFW, the BCCI on Thursday announced that the remaining two One-day Internationals (ODIs) of the three-match series of South Africa tour of India, 2020, will be played without any public gathering, including spectators," the BCCI had said in a statement.

The Union Health and Family Welfare Ministry has advised all the federations to avoid large gatherings.

World Health Organisation (WHO) on Wednesday had declared the coronavirus outbreak a 'pandemic' and expressed deep concerns.

The coronavirus disease was first detected in Wuhan in China's Hubei province, in late December, and has since spread worldwide.

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Agencies
August 6,2020

New Delhi, Aug 6: The BCCI on Thursday suspended the IPL title sponsorship deal with Chinese mobile phone company Vivo for the event's upcoming edition amid heightened tensions in Sino-India diplomatic ties.

The BCCI sent out a one-line statement, without giving details, saying that Vivo would not be associated with the IPL this year. "The Board of Control for Cricket in India (BCCI) and vivo Mobile India Pvt Ltd have decided to suspend their partnership for Indian Premier League in 2020," the statement said.

Meanwhile, Vivo released its own statement saying that the two entities "have mutually decided to pause their partnership for the 2020 season".

Vivo won the IPL title sponsorship rights for five years from 2018 to 2022 for a reported sum of Rs 2,190 crore, approximately Rs 440 crore per annum.

The two parties are now working out a plan in which Vivo might come back for a fresh three-year period starting 2021 on revised terms.

However, a top BCCI official offered a different view. "Here we are talking about diplomatic tensions and you expect that after November, when IPL ends and before the next IPL starts in April 2021, there would be no anti-China sentiment? Are we serious?" a veteran BCCI official said on conditions of anonymity.

The anti-China sentiment in the country peaked after the violent face-off between the Indian and Chinese troops in eastern Ladakh. India lost 20 soldiers in the clash, while China also acknowledged unspecified casualties.

The stand-off at the Line of Actual Control (LAC) caused outrage across India with several calls for boycotts of Chinese companies and products.

The BCCI is now likely to float a tender for new IPL title sponsors as mandated by its constitution. The glitzy T20 league starts on Sept. 19 in the UAE, forced out of India due to the rising COVID-19 cases.

The new development is in stark contrast to what came out of Sunday's IPL's Governing Council meeting, where it was decided that Vivo, along with all the other sponsors, will remain on board.

This was after the BCCI had announced in June that all sponsorship deals pertaining to IPL will be reviewed in the aftermath of the clash in the Galwan Valley.

However, after Sunday's meeting, there was a huge backlash on social media about the BCCI holding on to Vivo.

Both parties then began thrashing out an amicable separation plan, at least for this season.

However, the end of this deal could spell losses for the franchises as they get a substantial share from the sponsorship pool. Half of the annual Vivo sponsorship money is distributed equally among eight franchises, which comes to Rs 27.5 crore.

"As of now, it will be very difficult for the BCCI to match the sponsorship amount at such short notice. Therefore, both BCCI and the franchises should be prepared to lose out on some money -- BCCI more but each franchise from Vivo's exit will potentially lose 15 crore," the official said.

"This year will be difficult for everyone but the show must go on," the official said.

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News Network
May 28,2020

May 28: Former India captain and Kings XI Punjab head coach Anil Kumble is hopeful of the IPL happening this year and is not averse to the idea of conducting the cash-rich event without spectators due to the COVID-19 threat.

It is not official yet but there is speculation that the BCCI wants to hold the IPL in the October window after the tournament was postponed indefinitely earlier this year due to the COVID-19 pandemic.

"Yes we are hopeful and optimistic that there is still a possibility (to hold IPL this year) if we can cram in the schedule," Kumble was quoted as saying by Star Sports show 'Cricket Connected'.

"If we are going to have a stadium without spectators, then probably have 3 or 4 venues; there's still a possibility, we are all optimistic," said the former spinner, who is also the chairman of ICC's Cricket Committee.

Former India batsman VVS Laxman said the stakeholders can stage the league in cities which have multiple stadia to reduce travelling by players.

"Absolutely (there is chance to hold IPL this year), and also make sure that all the stakeholders have a say," he said.

"...you should identify one venue, which probably has 3 or 4 grounds; if at all you find that kind of a venue because travel is again going to be quite challenging," said the former stylish batsman.

"You don't know who's going to be where at the airports, so that I'm sure the franchises and the BCCI will be looking into."

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