Tuesday, June 21, 2011

Running a club not financially viable anymore

The biggest news in the Indian football transfer season so far is Okolie Odafe moving from Churchill Brothers to Mohun Bagan for Rs 1.2 crore along with a Merc to drive around the city.

It is par for the course if one considers Mohun Bagan's hunger for success and the Nigerian's prowess in front of the goal.

If this little piece of information tickles the palate of the domestic soccer fan, then a more discerning one must be bothered with one question. If Odafe helps Bagan win all the major trophies in one season then how much money will Bagan recover? The answer is barely a crore. And one Odafe doesn't make a team. Any I-League club spends something around 5-8 crores and more every season to field a competitive team.

Whatever revenue model one follows, running a football club in India is a financially losing proposition.

The end result is on the show for the second year running. If Mahindra United shut shop in 2010, then it's JCT in 2011. The danger that Indian football is facing, is clear and present.

The current I-League winning club Salgaocar Sports Club's owner and president Shivanand Salgaocar appreciates the looming peril. "A great nursery of football has had to close shop today. It is time to introspect. To energise the football scene, we need television coverage and a few stadia dedicated to football only where matches can be held under flood lights and after office hours for better in-stadia and television viewership. Not at 2. 30 and 4 in the afternoon. The players will be able perform better and the contests would be more attractive."

He is not training guns at the All India Football Federation (AIFF) for the sad spectacle. "The AIFF is not wholly to be blamed. The clubs too need to cut the coat according to the cloth. And only a few clubs in the world show a profit at the end of the year. We run a football club out of passion, not a successful balance-sheet."

When asked about the non-sharing of the television revenue, Salgaocar quipped, "First, there has to be a television deal. I do not know when that will happen."

Joaquim Alemao, the man behind Churchill Brothers, also walks the passion path but doesn't hide the difficulties that come along. "It's just because of my family that I'm running the club. We spend around Rs 10-11 crore every year. The prize money we get is not enough to provide breakfast for the players round the year." Joaquim couldn't suppress a guffaw but it was an ironic one.

Even the oldest club playing in the I-League, Mohun Bagan, with a fan base spread across the country often finds it difficult to match the debit and credit side of things.

Debashis Dutta, a senior official and the financial controller of the club, is understandably frustrated. To him, the disbanding of JCT was inevitable. "It was bound to happen. They got relegated because of atrocious refereeing. The AIFF didn't care. When Mahindra folded up, the AIFF didn't care. The federation has absolutely no respect for the clubs.

They are only formulating rules and imposing them on us (clubs) mostly without even consulting us. But the sponsors pay because we play the I-League and we don't even get a share of the sponsorship deals. Isn't it strange?"

In their parting statement, JCT mentioned the current lack of television exposure compared to 1996 when they won the inaugural National League. And Baichung Bhutia, the top scorer for JCT's winning cause, says, "Indian clubs are yet to become commercial entities.

As long as that doesn't happen, more and more clubs will go the JCT way. Year after year, they have been spending crores with minimal returns. I am sad but not surprised ."

Two top clubs close down in two successive seasons. Isn't it time AIFF sat up and took notice?

Winner's Purse

I-League 50 lakh

Fed Cup 12 lakh

IFA Shield 7 lakh

Durand Cup 10 lakh

Local league 5 lakh (average)

Total 84 lakh

Average money spent by an I-League team each season 5-8 crore. 



JCT goes Mahindra way, disbands from competitive football

 NEW DELHI: In a big jolt to Indian football, Punjab-based JCT Club today disbanded itself from professional football citing lack of public interest in the game in the country.

The development was not a surprising one as there had been speculations that the club, which was demoted from the I-League last month, would shut shop as it has been struggling for the last few years.

JCT's decision could also have an impact in All India Football Federation's efforts to rope in corporate sector in the development of the game.

" JCT Limited has taken a strategic decision to pull out for the time being till football in India shows some possibility of generating value for corporates and their brands, besides bringing up popularity of football among youngsters," a press release from the club said.

"JCT Limited being a corporate, needs to justify to its stakeholders the effort vs visibility of the football team. Today, football teams worldwide have become self-sustaining enterprises for which high exposure is needed to build viewership and spectators in the stadium.

"JCT won the inaugural Football League in 1996, where there was high quality TV exposure and widespread public interest. But since then the League has had negligible exposure and the teams have been going almost unnoticed," the release said.

The Punjab powerhouse side's decision to pull out from competitive football has come a year after Mahindra United disbanded after finding itself difficult to sustain due to lack of interest in the game in the country.

JCT chief Samir Thapar had been critical of the inability of the AIFF to market the game. He was not at all happy that the I-League matches were not telecast live even after the AIFF signed a 10-year commercial partnership deal worth Rs 700 crore with IMG-Reliance last year.

JCT, however, will continue to work at the grass-root level football and also continue to run its academy.

"JCT's football team was formed in 1971 and since then JCT has worked hard and invested in working at grass-root level in Punjab and building a top class team.

"Mr Samir Thapar, as president of Punjab Football Association, will continue to work with passion for strengthening the sport of football at grass-root level in Punjab and also through JCT Football Academy continue to find and train youngsters for tomorrow as the academy has been grooming champions for JCT and almost all football clubs of Indian football."

-TOI

Comment:It is all about passion! It is fools' dream to expect a profitable business by running a football club! Only few clubs in the world manage to show profits-rest all are in debts. Clubs need to plan their money matters well-it is all about money and man management. Marketing the game is the responsibility of AIFF and also of the club-sell the game to fans.PuneFC is an example and I think others should try to follow that!


I-League: JCT Decide To Disband Their Club, To Continue With Their Academy


In an exclusive interview to Goal.com earlier this month, JCT’s managing director, Samir Thapar hinted of the club’s future by stating that they shall continue with their famed academy but shall mull over the prospect of running a professional football club in an otherwise unprofessional environment.

In a release sent to the media on Monday afternoon, it was informed that the club shall no longer be in existence.

“JCT Limited has taken a strategic decision to pull out for the time being till football in India shows some possibility of generating value for corporates and their brands, besides bringing up popularity of football among youngsters. JCT Limited being a corporate, needs to justify to its stakeholders the effort Vs visibility of the Football Team

“JCT won the inaugural Football League in 1996, where there was high quality TV exposure and widespread public interest. But since then the League has had negligible exposure and the teams have been going almost unnoticed.”

Thapar had vented his frustration over the manner in which the game was being run in the country and pointed that lack of eyeballs and increasing costs are detrimental for a public limited company like JCT who have an explanation to give for their investments.

“You need the kind of exposure, the viewership. You have got to rationalize whether it’s worth spending and it doesn’t make any economic sense. If all the matches are shown on TV and there is some mileage, then spending even four crores is justifiable.

“I would rather spend on other sports otherwise. How many do know that an Indian League exists in the first place apart from sports lovers like you and me,” questioned Thapar.

“We hope the AIFF runs it well and I am hearing that with IMG-Reliance, possibly they might make I-League a success.

“If not then we will look at things and maybe continue running this way. As far as shutting down is concerned, I can’t comment on it but I don’t think so we might,” mentioned the former Executive Vice-President of the Asian Body Building Association.
  
As Mahindra United had decided to pull out of competitive football and continue to remain engaged by launching the Mahindra Youth Football Challenge with an exclusive tie-up with Celtic, the JCT Group shall continue their commitment towards the game by focusing on their academy which is known to produce bright talents.

“JCT's football team was formed in 1971 and since then JCT has worked hard and invested in working at grass-root level in Punjab and building a top class team.

"Mr Samir Thapar, as president of Punjab Football Association will continue to work with passion for strengthening the sport of football at grass-root level in Punjab and also through JCT Football Academy continue to find and train youngsters for tomorrow as the academy has been grooming champions for JCT and almost all football clubs of Indian football."

Thapar is an avid sports lover and represented the country in shooting back in the 1991 Commonwealth Games in New Zealand and was a former rally driver too.


-Goal

No comments:

Post a Comment

About Me

My photo
Thrissur, Kerala, India
Those who have power to change things don't bother to;and those who bother don't have the power to do so .................but I think It is a very thin line that divides the two and I am walking on that.Well is pure human nature to think that "I am the best and my ideas unquestionable"...it is human EGO and sometimes it is very important for survival of the fittest and too much of it may attract trouble.Well here you decide where do I stand.I say what I feel.

Followers

Blog Archive