NATIONAL SPORTS GOVERNANCE BILL, 2025- INTERFERENCE OR INDEPENDENCE IN SPORTS
AND
IMPACT ON CRICKET, IPL, SPORTS CONTRACT AND SPORTS DISPUTES

Author: Madhavan Srivatsan, Senior Partner
Emerald Law Offices
July 2025

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The Government of India introduced the much-awaited National Sports Governance Bill, 2025 (“Sports Bill”) in  the Lok Sabha on 23rd July 2025.

In the past decade, India has not only witnessed increased sports participation at the global level but has also seen  the commencement of sporting events involving participation from national and international sportspersons. The  government has taken several positive steps to encourage athletes across various sports, helping India establish its  presence globally beyond just cricket. This has also led to the commercialization of sports and the involvement of  entities from sectors like branding, marketing, finance, and management. Importantly, many youngsters are now  pursuing sports as a professional career.

Therefore, there is a definite need for legislation that regulates the ecosystem around sports to ensure the protection of athletes and the proper management of sports by competent and qualified individuals.

It is interesting to decode whether the new Sports Bill addresses all these issues and challenges. In this context,  let us briefly understand some important aspects of the Bill.

Purpose/Objective

The preamble of the Sports Bill states that, “…It is pertinent for national sports governing bodies to manage their  internal and external affairs in an open, fair and transparent manner in public interest”…… Government of India  respects the principle of autonomy of the sports governing bodies….”….. “Government of India recognises the  importance of providing accessible, fair and effective measures for the resolution of grievances and disputes  relating to sports….”. 

A bare reading of the preamble suggests that this is a positive step by the Government. Issues such as: (i) unfair treatment of athletes, (ii) disputes between athletes and federations, (iii) inadequate infrastructure at the  grassroots level, (iv) governance issues, and (v) election processes in sporting bodies (some of which have raised concerns at the international level), are expected to be addressed.

However, the other interesting questions to be seen are, (i) will there be any government interference in the  management of sports bodies, (ii) does BCCI/BAI/IOA/AIFF etc. have to be concerned, (iii) how will the  management of events like IPL, ISL, PBL, PKL take place (iv) is there any guidance on the commercial contracts  between the sports person, clubs, franchisee/brand owners, sports agents? This Article will attempt to answer some  of these questions.

Which Sports and which Sporting Bodies will be covered? What about Cricket and BCCI?

Although the term “sport” has a broad meaning and is difficult to define in legal terms, the Sports Bill makes an  attempt to address this by introducing the concept of a “Designated Sport.” According to the Bill, a “Designated  Sport” refers to any sport discipline that may be specified by the Central Government, through a notification, for  a specific region, State, or for the entire country.

This implies that the Government will, at a later stage, identify and notify certain sports as “Designated Sports.” The provisions of the Sports Bill will apply only to those notified sports and not to others.

The Bill further states that any sports organization intending to use the words “India,” “Indian,” “National,” or  any national symbol in its name or logo must obtain a no-objection certificate (NOC) from the Central  Government.

One of the most important provisions in the Sports Bill relates to its applicability. The Bill states that no person  or group of persons can represent India, a State, or a District in any sports trials, tournaments, or events of a  Designated Sport without authorization from the respective National Sports Body or its affiliated unit.

This raises several interesting propositions:

• If Cricket is not specified as a “Designated Sport,” then it falls outside the purview of the Sports Bill.  Whether Cricket should be included and regulated under this framework is a matter open to public  debate, and this article does not aim to delve into that discussion.

• Assuming Cricket is recognised as a “Designated Sport,” it is worth noting that although the Bill does  not mandatorily require BCCI or state cricket associations to register under it, the restriction on athletes representing India, States, or Districts without authorization effectively compels BCCI to register.  Without registration, BCCI would be unable to authorize players to represent the country or states.

• This gives rise to a particularly interesting question: Can the BCCI be denied registration under the  Sports Bill, and could a new body be formed to govern cricket under this legislation? As per various  reports, BCCI is an autonomous body that does not receive government funding, and therefore has  traditionally operated independently. However, if required to register under the Bill, BCCI may need to  amend its constitution and bye-laws to align with the Bill’s provisions.

• As for other sports associations such as the IOA, BAI, and AIFF, they are very likely to fall within the  scope of the Bill, as many of them are already recognised by the government, receive public funding,  and are involved in Olympic sports.

Structure 

The Sports Bill envisages the formation of several sports bodies, including a National Olympic CommitteeNational Paralympic Committee, National Sports Federations, Regional Sports Federations, and various sub-committees (collectively referred to as “Sports Bodies”). These bodies will be established for their respective  sports. However, there will be only one National Olympic Committee and only one National Paralympic  Committee. This also implies that for each sport, there can be only one recognized Sport Body (including its  affiliates and state-level bodies).

These Sports Bodies may be constituted as either: (i) a society under the Societies Registration Act, 1860; (ii) a not-for-profit company under Section 8 of the Companies Act, 2013; or (iii) a trust created under the Indian Trusts  Act, 1882.

Each Sports Body will have a General Body and an Executive Committee, consisting of no more than fifteen  members. Among these, at least two must be sportspersons of outstanding merit, and at least four members must be women. In addition, these bodies will be required to form sub-committees such as an Athletes CommitteeEthics Committee, and Dispute Resolution Committee. The detailed roles and responsibilities of these  committees are not clearly defined at this stage. The Sports Bill also provides a structured mechanism for the conduct of elections and prescribes the tenure of members of these Sports Bodies.

The Bill also provides for the establishment of a National Sports Board by the Central Government. The  Chairperson and other members of the Board will be appointed by the Government. The National Sports Board  will be entrusted with key responsibilities, including: (i) granting recognition to sports organisations, with the authority to suspend or cancel such recognition; (ii) conducting inquiries, either suo motu or based on complaints relating to the welfare of sportspersons, development of sports, or misuse of public funds; (iii) framing guidelines for a Code of Ethics; and (iv) formulating policies for the safety of women and minor athletes.

Most importantly, the National Sports Board will have exclusive and sole authority to grant recognition to any  National Sports Body as outlined in the Bill. Recognitions will be subject to periodic renewal. The Bill provides  that any sports body already recognized prior to its enactment will be deemed to have recognition under the new Board. However, the Board will also have the power to cancel or suspend recognition of any National Sports  Body, based on specific grounds provided in the Bill.

Based on the above, the following observations can be made:

• There is likely to be greater transparency in the functioning of sporting organizations, particularly in  their use of public funds and government grants.

• The selection of athletes is expected to become more transparent due to the involvement of qualified  and competent individuals in the General Body and Executive Committee.

Women and minor athletes will have enhanced protection from exploitation, as the Bill mandates the  creation of guidelines for a Code of Ethics and policies for the safety of women and minors.

• A complete absence of government interference cannot be guaranteed, as Sporting Bodies will operate under the supervision and direction of the National Sports Board, an entity appointed by the Government.  Whether this oversight will be positive or negative remains to be seen and will largely depend on how  the National Sports Board functions i.e., whether it acts as a fearless and independent authority or  becomes a mere extension of government control.

National Sports Tribunal

The Sports Bill mandates the establishment of a National Sports Tribunal (“Tribunal”) to provide an independent, speedy, effective, and cost-efficient mechanism for resolving sports-related disputes. The Tribunal  will have the authority to adjudicate legal disputes between sportspersons and sports bodies, including matters  involving exploitation, unfair treatment, and other grievances. However, the Bill specifically excludes certain  categories of cases from the Tribunal’s jurisdiction, which will continue to be handled by existing courts of law.

This is a welcome and positive development for athletes, coaches, and other stakeholders who have faced  exploitation or biased treatment by officials of various sports bodies.

It will be interesting to see whether, in the future, private sports clubs registered with or affiliated to state-level Sports Bodies will be allowed to approach the Tribunal with their grievances. If so, this could significantly shift  the power dynamics at the state level, as private clubs would gain access to a formal redressal mechanism to  challenge arbitrary or unfair actions by State Sports Bodies.

What happens to IPL, ISL, PBL, PKL?

The Sports Bill does not directly cover sporting events such as the IPL, ISL, PBL, or PKL. However, once the  relevant sport is notified as a “Designated Sport,” National Sports Bodies may find it challenging to organize such  events with complete autonomy, as there could be some level of scrutiny over the use of funds and administrative  practices, even if direct interference is not permitted under the Bill.

This is because, in these events, although the sportspersons are participating in a “Designated Sport,” they are not representing India, a State, or a District, but rather private clubs or franchise teams. Therefore, such events  would likely fall outside the purview of the Sports Bill, at least in terms of direct regulation.

Commercial Contracts Involving Sports Persons and Private Agencies

It would have been helpful if the Sports Bill had included some form of guidance or regulatory framework for  commercial contracts involving sportspersons, clubs, franchisees/brand owners, and sports agents. As of now, this  aspect appears to be missing.

Such guidance could be particularly useful, given that the financial interests of sportspersons and sports clubs,  especially those involved in promoting “Designated Sports”, are often closely linked with entities such as  franchisees, brand owners, and sports agents. For these commercial stakeholders as well, having a clear framework  would help protect their interests, particularly in large-scale events like the IPL or PBL, where high-value  international brands and athletes are involved.

That said, with the implementation of the Sports Bill, certain important and relevant changes will likely be  required in existing and future commercial contracts to ensure compliance with the Bill’s rules and regulations.  These changes may help align the interests of all parties while safeguarding the integrity of the sport.

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