Cricket and IPL have added to India’s global fame but the country cuts a sorry figure when it comes to Olympics sports. The existing facilities are inadequate to meet the needs of the rising health-conscious and youth population. We will help you get a level-playing field so that your viewpoint does not get entangled in the red tape and reaches the people who matter.
The field of sports provides immense business opportunities. According to a study, the business of sports will generate annual revenue of nearly $2 billion in India by 2015, mostly through income from TV media and sponsorships. The size would still be small on a global scale and account for a mere 1.3 per cent of global revenues of $145.3 billion in 2015. Revenues in sports industry are based on four key segments — ticket sales, sponsorship, media rights and merchandising including the food and memorabilia stands at the stadium.
Hosting of international tournaments and championships such as the cricket and hockey world cups, along with the Formula 1 Grand Prix and the Commonwealth Games have enhanced India’s image as a global sports destination. This in turn has been a leg up for all the stakeholders of the Indian sports industry.
Experts say the future lies in public private partnership (PPP) projects. This includes building world-class infrastructure, manufacturing goods and equipment, providing facilities for sports and health related activities, and managing sportsmen. PPP projects can also help nurture talent with government providing land, and the private sector building infrastructure and providing trainers.
A study by the National Skill Development Centre estimates that by 2022, India would need 3,64,745 sports coaches; 9,76,938 physical education teachers; 3,63,605, fitness trainers; 3,66,533; skilled for player development such as physios, masseurs, nutritionists and psychologists; 78,291 people per skill, with skills such as commentators, scorekeepers and referees.
There is a huge demand for professional education which can only be fulfilled through academia-industry partnerships and tie-ups with global organisations.
The cricket Indian Premier League, valued at around $3billion, alone has created numerous jobs, including those in advertising, media, legal department, managing sports stars, events, equipment, fashion and retailing, marketing and promotion. It has shown how sports can be monetised. Globally, corporate sponsorship for sports is cyclical in nature. It takes a hit during economic slowdown but there is usually a lag time of a year or two year between a financial downturn and slashing of marketing budgets.
The sports market is among the most complex markets where the government, federations and private sector all shoulder important responsibilities. With the commercialisation of the field, the private sector has started playing an important role in promotion, training and marketing of sports. The Planning Commission decides the funds to be provided to states for sporting activities. The central government is responsible for developing policies, creating infrastructure, imparting training, funding team participation in international tournaments and building capacity at the grassroots. The Seventh Five-Year Plan focused on creation of sports infrastructure, the Ninth Plan emphasised on the need for modern sports infrastructure, and the Tenth sought to promote both the broad-basing of sports and promotion of excellence in sports. None of these could be realised because of policy lacunae and inadequate budgetary support from central and state governments.
The sports market is driven by the youth. Besides higher disposable income, greater awareness of fitness and health-related issues has fuelled consumer spending. Out of a population of more than 75 crore aged below 35 years in India, only around 5 crore have access to sporting facilities. The central government has plans to make sports goods and equipment available at affordable price.
(Disclaimer: The information has been aggregated through secondary research. IFIE is not responsible for errors if any)