ISL & Broadcasting - The Actual Business
Star Sports, owned by American Media Powerhouse Disney, is looking to opt-out of it’s broadcasting deal for ISL. Reports of whether Star Sports will be broadcasting the upcoming 2023-’24 edition are doing rounds.
Star Sports and their ISL Business:
Star Sports owns 35% of Football Sports Development Limited, the parent company of the Indian Super League (ISL), while the remaining 65% is owned by Reliance.
Is FSDL making money? Yes. Is Star Sports making money from FSDL? Yes. Is Star Sports generating ad revenue? No.
This wasn’t the case for Star Sports always though. Star Sports earned a hefty 200 crores each year from ISL. However, with viewership hitting rock bottom with each passing ISL Season, Star Sports is losing out on ad revenue, with it currently having a razor thin margin or making a loss in ISL.
Why is ISL Viewership low?
While the ISL was launched inspired by the massively successful IPL, Indian Football wasn’t at a record high popularity in India like cricket. Indian Football, and specifically ISL, needed the attention of the massive 1.4 billion Indian audience, and a suitable broadcaster to present ISL as the glamourous event, with engaging commentators and exciting promos.
Star Sports, although in the initial ISL Days tried to bring attention to ISL, and was partly successful, it gradually reduced. Cricket being their prized possession, Football and other sports too went to a side. The ownership in FSDL meant Star Sports wasn’t required to pay any broadcasting fee to FSDL, while a meagre amount is said to paid to the ISL Clubs, insignificant in comparison to the IPL’s broadcasting deal.
ISL is currently streamed on Star Sports 3, the least viewed and subscribed sports channel in the entire Star Sports network.
Viacom18 gets the broadcasting deal. What’s next for ISL?
Viacom18, Reliance’s broadcasting subsidiary, is currently on a buying spree for sports leagues across the world for their sports division. NBA, Ligue 1, La Liga, SA20, Women’s IPL & Men’s IPL (Digital Rights) feature in their offering. They are looking to expand their offerings, with more channel launches already on their pipeline. With ISL already a Reliance property, there is absolutely no wonder that ISL will also feature in Viacom18’s kitty.
What remains to be seen though is whether Viacom18 will be willing to shell out a broadcasting deal, or share a portion of the broadcasting revenue with the ISL Clubs. ISL Clubs are currently reeling under losses, with broadcasting revenue serving as the primary prospect for a high potential viewership country like India.
Indian Football is currently undergoing a transformative phase, with recently launched Vision 2047 serving as the football roadmap for our country. JioCinema’s recent coverage on the World Cup, although marred with technical glitches, earned praises for their engaging viewership, and given ISL might also be viewed on JioCinema, the fan engagement and viewership might also be on a rise.
That however, depends solely on FSDL, and whether Star Sports would like to retain their share in FSDL, or whether it will be given back to AIFF.
