Exclusive: Bengaluru FC withhold July salaries amid ISL uncertainty

Salary freeze marks latest sign of financial stress as clubs await clarity on 2025–26 season

Bengaluru FC have informed their players that salaries for July will be held back for now, owing to the continued uncertainty surrounding the pre-season and the 2025–26 Indian Super League (ISL) season.

At the centre of this disruption is the unresolved Master Rights Agreement (MRA) between the All India Football Federation and Football Sports Development Limited. The Supreme Court is yet to announce its decision on the AIFF’s draft constitution case. Until then, the federation has been restricted from entering into any new negotiations with FSDL.

Also Read: Odisha FC suspend contracts amid ISL 2025–26 uncertainty

🧨 Legal deadlock triggers widespread disruption

FSDL had already notified clubs that they are unable to move forward with the upcoming season due to the legal standstill.

The deadlock has caused significant disruption. Eight clubs, including Bengaluru FC, have sent a joint letter to AIFF President Kalyan Chaubey, seeking urgent clarity and dialogue. Several clubs have already suspended pre-season activities, held back on recruitment, and opted out of the 2025 Durand Cup.

Earlier today, the AIFF confirmed that senior officials will meet with the CEOs of the eight concerned clubs in New Delhi on Thursday, August 7, to assess the situation and chart a possible path forward.

⚠️ Salary delays begin as clubs struggle with financial visibility

As Khel Now reported previously, Odisha FC had suspended all player contracts in light of the same uncertainty.

Bengaluru FC have now followed suit.

Khel Now have learned that Bengaluru FC’s players were informed on August 4 that July salaries would be held for now, with the club assuring them that all dues will be cleared once the situation is resolved.

This has been independently verified by Khel Now through three individuals closely linked to the club.

“After Odisha FC, Bengaluru FC have now delayed salary payments to players and staff. There’s a growing concern that this could trigger a domino effect,” a source tracking Indian football developments told Khel Now.

📉 Youth development and national team prep hit hard

The broader football ecosystem is also feeling the heat. With academies inactive and club operations on hold, player development is being severely compromised. The national team is also affected, as India heads into the September and October FIFA windows without competitive domestic football.

Adding to the tension, AIFF is yet to receive any payments in the 2025–26 financial year from their commercial partner FSDL, further deepening the financial strain across the system.

AIFF President Kalyan Chaubey has assured that the Indian Super League will eventually resume, but has acknowledged that timelines are contingent on the Supreme Court’s ruling. In the meantime, clubs are being forced into uncomfortable decisions just to stay afloat.

🔁 Force majeure and restructuring: How ISL clubs and FSDL are adapting

As Khel Now previously reported on July 11, multiple clubs had been exploring the option of invoking force majeure clauses to suspend or end contracts. Still, they were unable to proceed due to a lack of formal communication. That changed when FSDL issued an official statement confirming the suspension of the 2025–26 season.

Earlier this year, FSDL proposed a major overhaul of the league’s business structure. A profit-and-loss sharing arrangement would replace the current guaranteed-cash model. A new holding company would be formed to manage and commercialise the league.

This would represent a fundamental shift from the current model, where FSDL holds full control of ISL operations under the Master Rights Agreement.

With no solution in sight and financial stress mounting, all eyes are now on AIFF and FSDL to resolve the impasse before more clubs are forced into making similar, difficult decisions.

Why did Bengaluru FC put July salaries on hold? Bengaluru FC informed players that salaries for July would be delayed due to uncertainty over the 2025–26 ISL season. What is causing the delay in the ISL 2025–26 season? The season’s future hinges on the Supreme Court’s decision on the AIFF draft constitution. Until that verdict is out, AIFF is barred from entering new agreements with FSDL. Are other clubs affected as well? Yes. Odisha FC had already suspended all player contracts, and eight ISL clubs, including Bengaluru FC, have written to AIFF seeking clarity and action. Will players be paid eventually? Yes. Bengaluru FC have assured players that all dues will be cleared once there is clarity around the league and pre-season structure. What changes has FSDL proposed for the ISL? FSDL has proposed replacing the current guaranteed-cash model with a profit-and-loss sharing structure, and forming a new holding company to manage ISL operations. Under the new structure, ISL clubs would hold 60% ownership.

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