Instructions regarding termination clauses were not followed: AIFF breaks silence on Igor Stimac's contract extension fiasco and ultimate sacking

It's been a whirlwind of a few days for those keeping up with the sorry state at the helm of Indian football. First, there were the pedestrian performances from the national team even with history beckoning in the World Cup Qualifiers. Then came head coach Igor Stimac's sacking on June 16, which opened a whole other can of worms.

Before Stimac received the axe, AIFF President Kalyan Chaubey was interviewed on a couple of occasions by social media influencers. On one of those shows, he hinted at the then-head coach for making ample excuses for his own shortcomings. So when the Croatian's departure was made official, he decided to respond to those allegations and plenty more.

Since then it's been Rashomon playing out in front of fans, two alternative versions of their truth - the AIFF and Stimac's - being thrown around. Stimac went public with his statements when he hosted a press conference following his sacking, and then the federation responded today, June 24.

While there have been plenty of arguments and counter-arguments presented by the AIFF in their 1,591-word statement, they decided to address a very perturbing question that had crossed everyone's minds.

Who offered Igor Stimac a two-year contract extension despite the underwhelming performances under his reign?

Well, the AIFF answers it in their statement, or at least in a way they do.

"The current leadership of the AIFF took office in September 2022, at which time Mr. Stimac had already been in the position for over 3 years. When his contract came up for renewal in October 2023, the Core Committee of the AIFF, under the chairmanship of Vice President Mr. N A Haris, met in advance and proposed to the AIFF that Mr. Stimac could be offered a two-year contract with a monthly salary of US$ 30,000 from January 2024 and to instruct the legal team to finalize the contract ‘with a termination clause favorable to AIFF’."

Let's now try to break this down one by one. Stimac's contract was due for renewal in October 2023, and it was the core committee of the AIFF, chaired by Vice President Mr. N A Haris, who proposed offering him a two-year contract. The proposed salary was US$ 30,000 per month, starting from January 2024.

The core committee instructed the legal team to finalize the contract, but the next part is crucial, ‘with a termination clause favorable to AIFF’. While there's little clarity in AIFF's statement about what this clause could've been, one would assume, it would've helped them steer clear of all the legal threats now posed by Stimac.

Why was a 'termination clause favorable to AIFF’ not included in Igor Stimac's new contract?

"The then Secretary General and AIFF legal consultant negotiated and finalised and the then Secretary General signed the contract with Mr. Stimac. The executed contract provides for a salary raise to US$ 30,000 per month from February 2024-January 2025 (as approved by the Core Committee) and US$40,000 per month from February 2024-January 2026 (without Core Committee approval for the said amount). The specific instructions regarding inserting termination clauses favorable to AIFF were also not followed before executing the contract. However, certain clauses for termination for cause were retained in the contract."

The AIFF stated that it was the then-secretary general, Shaji Prabhakaran, and the AIFF legal consultant who negotiated and finalized the contract.

The contract, signed by the then Secretary General, stipulated:

A salary of US$ 30,000 per month from February 2024 to January 2025.
An increase to US$ 40,000 per month from February 2025 to January 2026

The increase in salary from February 2025, however, wasn't approved by the core committee. Furthermore, it was insinuated that the specific instructions regarding inserting favorable termination clauses for the AIFF were not fully followed by Prabhakaran while finalizing the deal. Only certain clauses for termination for cause were retained.

AIFF on Igor Stimac's sacking and severance package

The portions explaining the decision behind Stimac's departure are self-explanatory. The national team's performance was declining under his stewardship and his concerning conduct made the situation untenable.

However, according to the statement, the AIFF had allowed Stimac to depart on amicable terms. The Croatian tactician refused and made demands deemed "unreasonable and unprofessional".

Hence, the federation decided to terminate Stimac’s contract for just cause and their decision was in compliance with the terms of the contract. The former head coach has been offered a severance fee equivalent to three months’ salary.

However, days before Stimac's exit, AIFF technical committee chairperson IM Vijayan told Sportstar:

"He [Stimac] is under contract until 2026, so letting him go will make it an expensive affair. We will have to pay his salary until the end of his contract or until he finds another job. We will also have to get in a new coach and pay his salary too.”

Without a clear idea of the termination clauses, it's impossible to judge if the severance package is in tandem with the contract in place.