Super analyst Bhogtoram Mawroh today tackles a subject he hasn’t written on for us before – the economics of football, specifically how much it could help Meghalaya financially if we do become a major figure in the sport…
At the moment, the Shillong Sports Association Stadium is hosting two very important football tournaments: I-League 3 and Indian Women’s League 2 (IWL 2).
The winners of the respective state leagues are invited to send their champions to compete in these tournaments. This year, Nongkseh SSCC and Jakrem SC are trying their luck to progress to the higher divisions, namely I-League 2 and the IWL. What is particularly encouraging about the participation of Jakrem and Nongkseh in these two tournaments is that both teams consist exclusively of players from Meghalaya.
This is quite different from the past, when teams in the Shillong Premier League (SPL) sometimes had almost no local players, or local players were completely outnumbered by those from outside the state. However, things have changed considerably. Because of a rule instituted last year, Shillong Lajong were recently penalised for fielding more than two outstation players in their playing XI, resulting in a deduction of points that arguably cost the club the SPL 2026 trophy.
The Meghalaya Football Association and the state government have been doing a great deal of good work and continuously improving the state’s football infrastructure. However, one could reasonably ask whether the money spent on football could instead have been allocated to other, arguably more important sectors, such as education and healthcare. The fundamental question is whether football delivers any tangible financial benefits to the community beyond the pride and identity it fosters. The answer is an emphatic yes.
Recently, India played international friendlies against Brazil and Uruguay, two of the highest-ranked teams in the world, featuring world-class players such as Marquinhos, Vinícius Júnior, Darwin Núñez and Rodrigo Bentancur, among others. These big names came to India for one reason: money. The cost to the All India Football Federation (AIFF) of hosting the matches against Brazil, Uruguay and Panama was reportedly between Rs 80 crore and Rs 90 crore. This included Rs 35–40 crore for Brazil, Rs 12.5 crore for Uruguay and Rs 5.5 crore for Panama. The payment to Brazil alone, therefore, accounted for more than 30% of the total budget. However, if some experts are to be believed, the Brazilian and Uruguayan teams agreed to come only because of the war in West Asia, aka the Middle East. Otherwise, India might not have been able to attract teams of such high calibre, considering that they could have commanded much higher payments to play in some Arab countries. The payment made to Brazil will go to its national football federation, which can use the funds to develop future generations of players. In addition to earning revenue from playing exhibition matches against lower-ranked teams such as India, Brazil can also benefit financially from investing in their players through a mechanism known as the solidarity contribution.
According to FIFA and the AIFF’s Regulations on the Status and Transfer of Players (2023), if a professional player is transferred before the expiry of his contract, any club that contributed to his education and training between the ages of 12 and 23 may be entitled to a proportion of the compensation paid to his former club. This payment is known as a solidarity contribution.
Meghalaya’s Eugeneson Lyngdoh was an exceptional player who, according to many experts, could have played in Europe. Suppose Eugene had moved abroad while under contract. In that case, Rangdajied United, for which he played before turning 23, might have been entitled to a share of the transfer compensation, provided the club met the relevant eligibility requirements. Under FIFA’s solidarity mechanism, 5% of the qualifying transfer compensation is allocated to the clubs that contributed to the player’s training. For example, if a foreign club had paid Rs 5 crore, or just under €500,000, for Eugene (less than what Erling Haaland earns in a single week), Rangdajied would have received Rs 25 lakh. This money could then have been reinvested in the club. Suppose another foreign club subsequently bought him for a similar amount while he was still under contract. Rangdajied could receive another solidarity contribution from that transfer. Thus, the amount received can increase with the number of qualifying transfers and the value of the compensation paid.
This brings us back to Brazil. According to the CIES Football Observatory, Brazil was the second-largest exporter of footballers between 2016 and 2025, behind only France. In total, Brazil earned €2.6 billion from the international transfer of its players. Converted into Indian rupees, this amounts to more than Rs 27,000 crore, equivalent to almost 50% of Meghalaya’s revised gross domestic product (GDP) for 2024–25. The total amount generated by international player transfers worldwide exceeded €16 billion, or approximately Rs 1.72 lakh crore. This is almost three times Meghalaya’s GDP. These figures are approximate, as the rupee equivalents are calculated using the current exchange rate, which would have varied over the different periods covered. Nevertheless, they illustrate the sheer scale of the money involved in just one aspect of football. However, solidarity contributions apply only to qualifying transfers involving international clubs under the relevant FIFA regulations. There are also provisions to ensure that transfers between domestic clubs can generate payments to clubs that have invested in youth development.
One such mechanism is training compensation. This is a payment made to eligible training clubs when a player signs his first professional contract and, under the applicable rules, each time a professional player is transferred until the end of the season of his 23rd birthday. For example, Ronney Willson Kharbudon played for Langsning FC and Shillong Lajong before turning 23. When he signed for FC Goa, the clubs that had trained him could potentially have been entitled to training compensation, calculated according to FIFA’s rules and subject to the applicable conditions.
A third way for a club to generate revenue from developing players is through transfer fees. In 2021, ATK Mohun Bagan paid Rs 1 crore to Hyderabad FC for Liston Colaco. Lajong, in fact, earned almost Rs 1.5 crore from selling several players to various Indian Super League (ISL) teams in 2017.
All these payments can then be used to develop more players. The money can cover salaries for coaches and other club staff, rent for facilities owned by other parties and the many other expenses associated with running a football club. If the staff are from Meghalaya and the club is based in the state, these payments help circulate money within the local economy, supporting local businesses in the process.
However, these benefits can accrue even when the players developed by Meghalaya-based clubs are not from the state. This could create a strong incentive for clubs to recruit talented players from across the country rather than prioritising local talent. While this is, of course, the prerogative of individual clubs, the state football association and the state government should not extend support to clubs that do not contribute meaningfully to the development of local players. The state’s resources should primarily support clubs that contribute to the development of football in Meghalaya and benefit its local communities. In fact, supporting local players can benefit the economy in another way as well.
There is a widespread complaint that Indian footballers are overpaid, which may discourage them from moving abroad to test themselves against stronger competition and improve their game. As a result, some of India’s top footballers earn substantial salaries. During the 2024–25 season, Anirudh Thapa was reportedly the highest-paid Indian player, earning an annual salary of €330,000, equivalent to more than Rs 3 crore at current exchange rates. Suppose a player from Meghalaya were to earn a similar amount. Some portion of his salary might be sent home to support his family. Over time, with accumulated savings, the player might decide to invest in a business in the state, thereby contributing to the local economy and creating employment opportunities for the community.
All the mechanisms discussed above are already operating but Meghalaya has yet to become a footballing powerhouse. Consequently, the financial gains remain limited. What we need now is more aggressive investment in football infrastructure and local players. Other states are already ahead of Meghalaya and are likewise competing to secure a larger share of the financial rewards that football can generate. The competition is therefore intense. Ultimately, the benefits that football can bring to Meghalaya extend beyond local pride. They include tangible financial gains that can benefit the wider state economy. Hopefully, football will continue to grow in Meghalaya, with multiple teams competing at the highest levels of Indian football and players from the state representing not only the best clubs in the country but also some of the best in the world.
(The views expressed in the article are those of the author and do not reflect in any way his affiliation to any organisation or institution)