By Ashley Fernandes
The Indian sports industry has witnessed a remarkable growth rate of 49% in the past year, far surpassing the actual growth rate of India's GDP, which stands at an estimated 7.2%. With a total revenue of approximately ₹9,530 crores, the sports industry is proving to be a lucrative sector for investment and development. While cricket continues to dominate the scene, emerging sports such as Kabaddi and football, along with women's competitions, are gaining momentum and highlighting the return on investment in women's sports.
The Indian sports industry is experiencing notable transformations and advancements leading to significant developments. Firstly, there has been a rise in the number of domestic and international leagues, providing athletes with more opportunities to display their skills on a larger platform. Secondly, sponsorship, franchising, brand communication, marketing, data visualization, and the emerging field of E-sports are playing crucial roles in managing content, engaging fans, and driving innovation.
Additionally, there is a significant increase in infrastructure spending, as evidenced by the investments in sports infrastructure in Odisha. The enduring value of live sports as valuable assets continues to make them highly attractive for investment opportunities. Athletes are now emerging as influential role models for the youth, and digital marketing and sponsorships are gaining momentum as effective methods of engagement. The fusion of sports and entertainment, exemplified by events like the Indian Premier League (IPL), enriches the spectator experience and generates fresh prospects for brand partnerships. Furthermore, the convergence of sports with wellness and luxury is opening up exciting new avenues for exploration.
Brands have begun to recognize the immense potential of tapping into the passion and loyalty of Indian sports fans to create value for stakeholders. According to EY FICCI M&E Report 2022, new-age brands like Paytm, Byju’s, BharatPe, PhonePe, Cred, and other platforms used sports as an opportunity to build saliency with large consumer bases. With increasing disposable incomes, sports, wellness, and entertainment are expected to become vital drivers of the Indian economy. The transformation of the Indian sports ecosystem is happening rapidly and profoundly, establishing sports as a distinct industry while aligning with global trends.
The global sports industry is influenced by multiple factors including culture, finance, data, marketing, and communication. Similarly, in India, it is essential for students to understand that the sports sector possesses inherent value and presents significant professional prospects. Rather than solely concentrating on sports participation, aspiring professionals should aim to develop skills in management, finance, marketing, and communication. By doing so, they can effectively navigate the unique intricacies and dynamics of the sports industry.
To effectively shape these nascent trends and capitalize on the industry's potential, super-specialization in the knowledge and skills specific to the sports industry is essential. According to EY FICCI Report 2023, 20% of sports fans watch sports exclusively on digital platforms. It highlights that, while being a specialist in sports is valuable, the future lies in becoming an excellent manager, financier, marketer, or professional capable of understanding and leveraging the unique business models of the industry through technological innovations. This multidisciplinary approach will add value for stakeholders and unlock numerous professional opportunities.
Looking ahead, the Indian sports industry is brimming with exciting opportunities on the international stage. With major events such as the ICC T20 World Cup, Asia Cup, FIFA World Cup, Hockey World Cup, Pro League, Formula E, Moto GP, and a multitude of domestic events like the Indian Premier League, Khelo India, ISL, PKL, Marathons, Maharashtra Open, and Women's IPL, the industry is well-positioned for significant growth and global recognition. These events promise to showcase India's sporting talent and further elevate the country's status in the international sporting community. In the context of India, embracing responsible and environmentally friendly sports has also become very important. With a population of over 1.3 billion, India faces numerous environmental challenges, including pollution, deforestation, and water scarcity. Sports can serve as a powerful platform to drive change which requires a visionary perspective aided by the sports management leaders of tomorrow.
For instance, the Indian Premier League (IPL) has taken steps towards sustainability by adopting solar-powered stadiums, promoting eco-friendly transportation, and implementing waste management systems.
Additionally, initiatives like the "Green Marathon" in cities like Mumbai and Delhi raise awareness about air pollution and encourage participants to run for a cleaner environment. These efforts highlight the importance of responsible sport in addressing India's environmental concerns and inspiring sustainable practices nationwide.
In conclusion, the Indian sports industry is in need of professionals who possess specialized knowledge in sports management to foster significant growth. As the sector continues to evolve, individuals who have a comprehensive understanding of sports business models and a diverse skill set will play a crucial role in shaping its future. It is important for students to recognize the inherent value of the sports sector and capitalize on the abundant professional opportunities it offers.
The author is Chairman-Joint Board, XAVIER-EMLYON Business School.
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