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Sabtu, 02 Juni 2012

Does Investment in an I-League club make business sense?

It is a very difficult question to answer then it depends on the reasons why such an investment is made. If it is made purely from a business standpoint then it currently makes no sense at all, then Indian football clubs are still far away from profitability and owning real assets.

But if the All India Football Federation and their marketing partners IMG-Reliance in the near future put the right steps in place, then things could change within a three to five year period as different revenue streams could open-up for the I-League clubs like TV rights, a central marketing pool, sponsorship deals, spectators, merchandise and more.

The interest of Bollywood superstar Shahrukh Khan to invest in Dempo SC shows that many see the potential of club football in India though as said there is no Return of Investment at the moment, then money spend by club owners and/or stakeholders can currently not be recouped.

But investment for stake in clubs by the Fidelis Group in United Sikkim FC and Anglian Holdings in Shillong Lajong FC besides the new entry of the Dodsal Group show that interest to invest in Indian football is there. Numerous other groups are also waiting on the sidelines to enter club football in India, but the climate within Indian football has to be more investor friendly and as mentioned earlier ROIs need to be visible at the end of the tunnel.

Chances are there for club football in India, only the right steps by the key players need to be taken which also means professional management of the game with the right people with the necessary vision and knowledge in-charge.

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