AIFF members oppose Kalyan Chaubey's move to liquidate Rs 20 crore fixed deposit to clear Brazil, Uruguay dues - Reports

AIFF faces financial crisis after India friendlies against Brazil, Uruguay and Panama

All India Football Federation (AIFF) is facing mounting financial pressure after hosting international friendlies against Brazil, Uruguay and Panama last month. The federation’s attempt to withdraw money from its fixed deposit to cover the resulting deficit has hit a roadblock, with several General Body members opposing the proposal.

According to a Press Trust of India (PTI) report, the three matches could leave AIFF facing a potential financial deficit of Rs 80-85 crore. President Kalyan Chaubey reportedly proposed liquidating the federation’s fixed deposit to meet the outstanding liabilities during Sunday’s Special General Body Meeting (SGBM).

However, members argued that the reserve should remain untouched except during an emergency. The proposal will now require further discussion before the Executive Committee can decide whether to approve the withdrawal.

According to The Times of India (TOI), AIFF has a fixed deposit of Rs 20 crore and has sought an extension to clear the pending appearance fees owed to Brazil and Uruguay.

The report stated that Brazil is due approximately Rs 19 crore, while Uruguay is owed around Rs 4.7 crore. Both countries have reportedly received only 50% of their appearance fees, whereas Panama have been paid in full.

AIFF members oppose proposal to break fixed deposit

Chaubey reportedly asked members to approve the withdrawal of funds before the fixed deposit matured. He also offered to arrange money from external sources and replenish the account later.

A senior official who attended the meeting told TOI, “The AIFF president (Kalyan Chaubey) requested members to approve withdrawing money from the fixed deposit (before maturity) and said he would later get the money back into the account.”

The official added that members objected to the proposal, with vice-president NA Haris reminding the meeting about an earlier Executive Committee decision against using the fixed deposit.

PTI also reported that a senior state association official confirmed Chaubey’s proposal.

“Yes, he (Chaubey) said he wants to liquidate the AIFF’s fixed deposit to pay the deficit (arising out of the international friendlies),” the official told PTI on condition of anonymity.

The official said Chaubey subsequently offered to arrange external funding and return whatever amount the federation withdrew.

“Later, he (Chaubey) also said that he would arrange funds from outside sources and then pay back whatever amount is to be withdrawn from the FD,” the official added.

However, the proposal received considerable opposition from members. According to PTI, the official said that Haris intervened during the discussion and stated, “there is a decision of the Executive Committee of the AIFF that the FD cannot be liquidated”.

Other members also maintained that the federation should preserve its reserves for emergencies.

“Other members also said for whatever reason, the AIFF’s fixed deposit cannot be touched. it’s only for emergency,” the official told PTI.

The fixed deposit reportedly dates back to the tenure of former AIFF president Praful Patel, who led the federation from 2018 to 2022. Patel attended Sunday’s virtual meeting and opposed the proposal, receiving support from several state association presidents.

Another official told TOI, “Until the executive committee approves, money from the fixed deposit cannot be utilised to pay the dues.”

The federation did not disclose the precise outstanding amount during the meeting, citing confidentiality clauses in its agreements.

Praful Patel questions AIFF’s funding arrangements

Patel reportedly questioned the federation’s approach to financing the international friendlies. According to PTI, he reminded Chaubey that the president had previously assured members that AIFF would arrange the required money through external sources.

Patel also sought clarity on the federation’s outstanding liabilities and the payment deadlines.

“Praful Patel asked Chaubey to let all the members know when and how much money the AIFF will have to pay to the creditors,” the state association official told PTI.

The discussion ended with a decision to form a core group under Haris’s leadership. The group will examine the financial details and consult members before the matter returns to the Executive Committee.

The state association official told PTI, “Later on, it was decided that Haris would invite some persons from the General Body and he would discuss this issue in a meeting and then it will be placed before the Executive Committee again whether to approve the liquidation of FD to pay the debts of AIFF or not.”

When contacted by PTI, Chaubey declined to comment on the discussions.

“No, I am not giving my version. It was an internal meeting and what is there to tell outside (people),” he said.

Also Read: AIFF’s regular accounts show ₹11.25 crore in March, India vs Brazil bill runs to ₹70 crore

Low ticket sales add to AIFF’s financial burden

The financial situation has also drawn attention to the commercial returns from the three international friendlies.

AIFF had reportedly projected ticket revenue of around Rs 30-40 crore. However, sales fell short of expectations, with high ticket prices reportedly affecting demand.

The federation subsequently introduced discounted ticket arrangements for supporters of Mohun Bagan Super Giant, East Bengal and Mohammedan Sporting. It also advertised a Buy One Get One Free offer for the India vs Brazil match on its social media platforms.

According to TOI, AIFF had received Rs 25 crore from its ticketing partner as a recoupable advance. The federation may have to return part of that amount, adding to its existing financial obligations.

Brazil’s star-studded squad had generated considerable interest ahead of the Kolkata fixture. The visitors brought several prominent players, including Real Madrid forward Vinicius Jr, Marquinhos, Arsenal defender Gabriel Magalhaes, Endrick and Chelsea’s Estêvão.

Despite the attention surrounding the matches, the reported revenue shortfall has left the federation facing questions over its financial planning.

AIFF’s financial position raises concerns over domestic football

The potential deficit has also prompted questions about how AIFF will fund its regular activities while settling the liabilities arising from the friendlies.

According to PTI, a member raised concerns about the federation’s ability to organise domestic championships, football development programmes and competitions such as the Santosh Trophy while dealing with the financial shortfall.

The issue extends beyond the pending appearance fees. AIFF must also ensure that its financial difficulties do not disrupt its wider responsibilities towards Indian football.

For now, the proposal to liquidate the Rs 20 crore fixed deposit remains stalled. Haris’s core group is expected to examine the financial details before the Executive Committee takes up the matter again.

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