Hockey India League Team Owners Voice Concerns Over First Season's Management
Concerns Raised by Team Owners
The proprietors of the Hockey India League (HIL) have expressed several concerns regarding the management of the league's inaugural season. Despite the league receiving positive feedback, the owners were dissatisfied with the sponsorship revenue, which fell short of expectations.
Hockey India (HI) had projected earnings of ₹90 crore from sponsorships, yet the actual revenue was just over ₹13 crore.
Team owners highlighted losses of approximately ₹13 crore for those managing both men's and women's teams, while those who owned a single team faced significantly lower losses. The men's league featured eight teams, whereas the women's league had only four, which is set to expand to six in the upcoming season.
Issues and Future Improvements
During a recent meeting in Bhubaneswar, several issues were discussed, including poor broadcast quality, the need to increase player salaries, and enhancing marketing strategies for the next season.
Owners invested ₹7 crore to bid for a men's team and ₹2.5 crore for a women's team, excluding taxes. The operational costs for managing both teams exceeded ₹20 crore.
To improve the situation, HI announced that 60% of the ₹13 crore from sponsorships would be distributed among team owners. Additionally, HI will provide ₹1 crore to men's team owners and ₹50 lakh to women's franchise owners.
Commitment to Better Commercial Deals
HI also committed to securing better commercial agreements for the next season and plans to appoint a commercial head to drive revenue growth.
A source mentioned that teams requested transparency regarding the profit and loss statements from the first season. Although HI shared some information, complete disclosure is still pending.
Concerns about broadcast quality, player salaries, and marketing strategies were emphasized in the meeting, although it appears there is reluctance to increase player salaries for the upcoming season.
Need for Enhanced Sponsorship Efforts
Another team representative stated that HI must improve its sponsorship efforts. "While it’s understood that the league will take time to become profitable, there was potential for greater revenue. They aimed for ₹90 crore in sponsorships but barely reached ₹15 crore," the source remarked.
The player salary cap of ₹4 crore for men's teams and ₹2 crore for women's teams has also been a significant barrier for many in acquiring top talent.
HI Secretary Bhola Nath Singh acknowledged the concerns raised but assured that the federation is committed to supporting team owners.
Singh stated, "All decisions have been made with collective approval. We have communicated everything to the franchise owners. Regarding sponsorship issues, we have formed a marketing committee, and we assure you that the next edition will be more successful and larger in scale."