Take pay cuts to save season: ISL clubs to players

Indian Super League (ISL) clubs have collectively approached the sports ministry and the All India Football Federation (AIFF), emphasizing the urgent need for a financial restructuring, particularly concerning player compensation. This measure is deemed vital to maintain owner engagement and secure ongoing investment in Indian football.

During a meeting, at least nine club officials voiced their agreement that contract terminations or renegotiations are necessary for "the good health of Indian football." That said, the reality is a bit more complicated. unilaterally ending player contracts could lead to numerous legal challenges, potentially involving FIFA for foreign players. Anticipating a surge in disputes, the clubs are seeking support from the AIFF or the sports ministry, especially given the likelihood of a shortened season.

The AIFF has adopted a cautious stance. President Kalyan Chaubey stated that any actions must align with FIFA statutes and established precedents. He indicated that the AIFF would consult its legal team if presented with evidence of similar situations in other countries and the reasons for player pay reductions. The AIFF's policy is to adhere to global practices and FIFA/AFC guidelines.

Player salaries account for a significant portion (60-70%) of ISL club budgets. While the ISL has a salary cap of Rs 16.5 crore, many clubs exceed this limit to enhance their competitiveness. According to a senior club official, adjusting player salaries is crucial for achieving financial sustainability, especially in the absence of a commercial partner. Clubs have reportedly paid players 50% of their salaries despite the limited number of games played.

Another official from an ISL-winning club emphasized the need for a comprehensive reset, suggesting that the current ISL format is unsustainable, at least for this season. This could allow clubs to invoke the Force Majeure clause and terminate contracts. The official acknowledged potential legal battles but stressed that players must acknowledge the challenging financial circumstances.

One proposal involves allowing clubs to retain certain players while terminating other contracts. A domestic player draft or auction, similar to the 2017 event when the ISL expanded, was also suggested.

The AIFF president has expressed willingness to support clubs in cost-cutting measures, potentially in collaboration with the sports ministry. The ISL's start has been delayed, likely until February, due to the AIFF's inability to secure a commercial partner. The previous 15-year agreement between the AIFF and FSDL concluded in December, contributing to the current uncertainty and suspension of first-team operations.