AIFF Weighs Pausing ISL Relegation After Diamond Harbour Fails to Pay Fee

The All India Football Federation is considering suspending relegation in the Indian Super League for one season after Diamond Harbour FC failed to complete the Rs 1.1 crore participation fee required to take its place, leaving the competition reduced to 13 teams, according to a Times of India report on August 22, 2026. Rs 55 lakh of that fee had already been adjusted against the club's prize money.

Diamond Harbour secured promotion by winning the Indian Football League last season but could not meet the full participation payment. Promotion and relegation were only introduced to the ISL last season after years as a largely closed competition. The ISL began in 2014 as a three-month tournament and became India's top division in the 2019-20 season. Relegation was applied in 2025-2026 when Mohammedan Sporting finished at the bottom.

Clubs in the ISL want clarity on whether the relegation rule will apply with one promoted side not taking up its spot. The AIFF has not yet issued a formal response, and the Times of India said the federation's league committee and executive committee could consider putting relegation on hold for one season.

The AIFF constitution requires that India's senior top division implement promotion and relegation while meeting the AFC's requirements for eligibility for a direct slot in the Asian Champions League. That regulatory requirement is a factor the federation must weigh as it decides how to apply the rules this season.

The league's operating model is also changing: Football Sports Development Limited, the Reliance-owned company that previously held the ISL's commercial rights from the AIFF, is no longer in that role. The clubs are set to run the competition collectively through a special purpose vehicle as the new club-run model begins amid questions over the league's sporting structure.

The AIFF's eventual decision will determine whether relegation remains in place after just one season or is paused while the ISL adjusts to having 13 participating clubs.