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
April 2,2020

Lausanne, Apr 2: The postponement of the Tokyo Olympics and the shutdown of the sporting calendar because of the coronavirus pandemic are going to hit international sports federations hard financially.

Many sports that are part of the Games depend heavily on the payouts every four years from the International Olympic Committee (IOC).

"The situation is tense and very gloomy. An assessment will be made, but clearly some posts are under threat," said an official of a major international federation.

The 28 international federations (IF) of the sports that were due to be present at the Tokyo Olympics, would have received substantial sums from the IOC.

However, the postponement of the Games until 2021 could lead to a freeze of their payment.

"We have a lot of IF with substantial reserves, but others work on a different business model, they have income from major events which are suspended, which can be a problem for the cashflow if they don't have enough reserves," said Andrew Ryan, director general of the Association of International Olympic Summer Sports Federations (ASOIF), which is responsible for distributing this money.

The five additions to the Tokyo Games programme - karate, surfing, skateboarding, climbing and baseball/softball - are not eligible.

The Olympic payout totalled 520 million after the Rio Games, four years ago.

"The Olympic money could be less than for Rio 2016," Ryan warned before adding: "My advice is to budget the same as in Rio".

The federations receive money on a sliding scale determined by their audience and size.

The three largest (athletics, swimming and gymnastics) can expect approximately 40 million.

For the second tier, made up of cycling, basketball, volleyball, football and tennis, the sum is 25 million.

For group three, which contains eight sports, including boxing, rowing, judo and table tennis, it is 17 million.

The nine sports in the next level (including sailing, canoing and fencing) receive 12 million.

For the three in the last category (rugby, golf, modern pentathlon) the payout is 7 million.

For the largest associations, such as football's FIFA which has a 1.5 billion nest egg, or basketball body FIBA which has CHF 44.4 million (42 million euros) in reserves, IOC aid represents a small proportion of their income.

For others, it is vital.

"Some IF probably don't have the cashflow to survive one year," said Ryan.

For most federations, the postponement of the Olympic Games has a domino effect, forcing them to reschedule their own money-earning competitions.

"The revenues from these events will eventually come in," said Ryan. "But this impacts the cashflow." World Athletics has already postponed the 2021 World Championships in Eugene, Oregon to 2022.

The International Swimming Federation (FINA) will have to do the same for its World Championships scheduled for next summer in Fukuoka, Japan, when they would probably clash with the Tokyo Games.

"One edition of the World Championships means for us 10 million in revenues," said one sports federation official, speaking on condition of anonymity.

"If this income is postponed, totally or partially, for a year, we will face major problems, especially if the IOC money, originally expected in September, is not paid out."

The Singapore-based International Table Tennis Federation has already taken steps, with "the Executive Committee agreeing to reduce their expenses and senior staff offering to take a salary reduction," said marketing director Matt Pound, but, he added,"further cuts will take place if needed."

- 'Significant loss of revenue' -

The ITTF has suspended all its competitions until June and that is costly.

Kim Andersen, the Danish president of London-based World Sailing, said commercial revenues are not immune.

"The IOC will eventually pay out its aid, but what weighs most heavily is the uncertainty about whether our competitions will be held and whether our sponsors will be maintained," he said.

The IOC is not prepared to go into details of what it plans.

"It is not possible at this stage to assess the overall impact" of the postponement of the Tokyo Olympics, an official told AFP.

"It depends on a number of variables that are currently being studied." According to an official of one federation: "the IOC will discuss on a case-by-case basis, sport by sport".

Another option is for the federations to ask for a share of the public aid set up to deal with the coronavirus crisis, in Switzerland, where 22 ASOIF members are based and also in the United Kingdom, home of World Sailing.

"Can sports federations benefit from federal aid? The answer is yes, in principle," Philippe Leuba, State Councillor of the canton of Vaud, in charge of the economy and sport, told.

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News Network
February 13,2020

Feb 13: Veteran India batsman Suresh Raina feels Mahendra Singh Dhoni is the best captain India ever had.

Raina and Dhoni play for the same IPL franchise -- the Chennai Super Kings --, which is also led by the latter.

"I think we have the best captain who has changed the Indian team like anything. Now we have that same aura in our dressing room," Raina said on 'The Super Kings show' on Star Sports Tamil.

The 38-year-old Dhoni has retired from Test cricket but his future in the limited overs formats is a subject of intense speculation.

The two-time World Cup-winning former captain took a break from cricket after India's exit from the 2019 World Cup in England. He is set to be back in action at the IPL, where he will captain the CSK, starting March 23.

With three restricted stands at the MA Chidambaram Stadium in Chennai finally being reopened, Raina urged the fans to fill the venue in every CSK home game.

"We have all the seats available. Hopefully, we'll have more fans now so that there is it will be more energy on the field," the 33-year-old Raina, a former India batsman, said.

Raina, who last played for India in 2018, also expressed his excitement about the prospect of playing with CSK's latest acquisitions.

"This year we have a lot of new talent in our team. Piyush (Chawla) is there, then we have Hazelwood, Sam Curran, Sai Kishore from Tamil Nadu, he has been bowling really well for them. So, I think we have a lot of mixture of youngsters and seniors."

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News Network
June 29,2020

Jun 29: The West Indies cricketers will sport a 'Black Lives Matter' logo on the collars of their shirts during the upcoming three-Test series against England to protest against racism in sports.

Skipper Jason Holder, who has voiced his support to the cause that has once again come to the forefront after the killing of American George Floyd, said in a statement on Sunday: "We believe we have a duty to show solidarity and also to help raise awareness."

The ICC-approved logo, designed by Alisha Hosannah, will be the one which featured in the shirts of all 20 Premier League football clubs since the sport's resumption earlier this month.

"This is a pivotal moment in history for sports, for the game of cricket and for the West Indies cricket team," Holder was quoted as saying by ESPNcricinfo.

"We have come to England to retain the Wisden Trophy but we are very conscious of happenings around the world and the fight for justice and equality. "As a group of young men, we know of the rich and diverse history of West Indies cricket and we know we are guardians of the great game for a generation to come."

Holder, who wants racism to be treated at par with doping and corruption, said they arrived at the decision to wear the logo after much thought.

"We did not take our decision lightly. We know what it is for people to make judgments because of the colour of our skin, so we know what it feels like, this goes beyond the boundary. There must be equality and there must be unity. Until we get that as people, we cannot stop," he said.

"We have to find some way to have equal rights and people must not be viewed differently because of the colour of their skin or ethnic background."

The West Indies players are likely to wear the shirts for the first time in this week's four-day warm-up match at Emirates Old Trafford, starting on Monday.

The opening Test of the series, which will mark the resumption of international cricket after the coronavirus-forced hiatus, will get underway at the Ageas Bowl in Southampton on July 8.

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