We don't expect any profit for next three years: Utsav Parekh

Q&A with co-owner, Atletico de Kolkata and Chairman, SMIFS Capital Markets Ltd

With the Indian Super League all set to be inaugurated this Sunday, Utsav Parekh, co-owner Atletico de Kolkata and Chairman, SMIFS Capital Markets Ltd tells Arindam Majumder that entering in to the football league was not with a money-making objective and he expects no profit for the first three years.

While buying a cricket team is a safe bet, corporates have been reluctant to get associated with other sports in this country. Why has it been different in case of ISL?

Football is the game of the world, every one wants to get associated with it. It has become equally popular here creating a huge sponsorship market.

ISL provides an opportunity to tap that. Obviously, it will not be easy. This is the first year of the league. We have to fire up the imagination of the people. But I am sure as we go along over the years, it shall happen.

Even after seven seasons of the Indian Premier League, franchisees are yet to make profit. Do you think it will be different for ISL?

We certainly know that it is not going to make any money atleast for the first three years. There will be losses. But, we have not done this only with a money-making mentality.

This objective of entering the football league is not a business proposition, but a willingness to do something for the improvement of the game in this country and for Bengal, in particular. About the prospect in future, it is too difficult now, but we are optimistic.

The top football clubs of the world makes a fortune by selling their merchandise. Will ISL initiate such trend in Indian football? Does your franchisee have any such plans?

I don't think India is still an ideal place to sale merchandise. Initially this will not be a big business, but may be three to four years down the line, there will be a huge market for it.

We definitely have such a plan and slowly it will be implemented. But first and foremost the game has to begin as merchandise cannot be sold without the event becoming popular.

Your team is based in Kolkata. Do you think being based in a city which is not a favourite among the corporates makes it tougher to attract sponsorships in comparison to Mumbai and Delhi?

Yes! It is not so easy to get sponsors. But, we have been lucky this season. We have got all our main sponsors already in place. Front and back of the player's jersey are being sponsored by Aircel and Apollo Munich respectively, where as pendant on the jersey will be Lux Cozi. We are also in the final stage of identifying other sponsors.

What is the duration of the of the deal with Aircel?

According to ISL rules, the deal is for one year but I am sure all our sponsors will come back next year too.

Despite being one of the costliest franchisee, the tickets have been priced at fairly low price? Why so, when a brand image of the tournament has already been built?

Traditionally, the price of the tickets have been low in I-league and also we are trying to make the event a family- experience. So, instead of looking at an instant profit, we are giving at a price which is affordable to all segments. I will say they are not very cheap and not very expensive but affordable to all sport-lovers.

Where do you see ISL and Atletico De Kolkata as a brand in future?

We both should be going hand-in-hand. In the success of ISL, lies the success of the franchisee.