GroupM ESP, the entertainment, esports and sports division of GroupM India has announced the launch of its 11th edition of the sporting nation report titled ‘Sporting Nation – Building a Legacy’. The report offers an in-depth analysis of the sports sponsorship landscape in India. Interestingly, the report’s title this year shifted to “Sporting Nation Building a Legacy” from “Sporting Nation in the Making” to reflect the elevated status we now have as a sporting nation.
As per the report, Indian sports industry, soaring from Rs 2400 crore in 2008 to over Rs 15,000 crore in 16 years, asserting its prominence nationally and globally. The report recounts the Indian sports industry’s sixteen years long journey. From the 2008 IPL’s spark to its current Rs 15,000 crore powerhouse status, the report highlights not just expansion and commercialisation, but also the industry’s growing influence on the global stage.
While cricket remains a dominant force, emerging sports are gaining traction, both in terms of sponsorship reaching Rs 1528 crore, 21% of the total share and performance with victories in Thomas Cup, over 100 medals at Asian Games, among others.
Talking about the report, Prasanth Kumar, CEO, GroupM – South Asia said, “Predominantly propelled by cricket and bolstered by emerging sports alongside the rise of OTT platforms, we’ve observed a transformative shift in the consumption and celebration of sports in our country. With a packed calendar of both local and international events, another year unfolds, offering ample opportunities to leverage technological advancements. As marketers, we have to seize this chance once more to champion inclusivity, innovation, and the enduring spirit of sport in our country.”
Furthermore, the sports industry in India witnessed a surge in 2023, recording a total revenue of Rs 15,766 crore (approximately $1.9 billion), marking an 11% incremental value over the previous year. In 2023, 87% of the sports industry spending came from cricket, amounting to Rs 13,701 crore for the year. This marks a 13% growth from 2022 figures.
Meanwhile, sponsorship spending experienced 24% growth compared to 2022, primarily fueled by an increase in franchise fee, which contributed nearly Rs 1,000 crore within a year. This growth underscores the robustness of India’s franchising ecosystem, exemplified by events like the IPL, WPL and so on. Combining cricket and emerging sports, sports celebrities earned Rs 927 crore (equivalent to $112 million) in 2023.
Additionally, over-the-top (OTT) platforms played a pivotal role in transforming the sports consumption landscape in India, with significant growth observed in digital spends for events like the IPL and ICC Cricket World Cup.
Participative sports have gained prominence, transcended traditional boundaries and fostering community engagement. From golf and cricket to marathon running, these sports have become integral to India’s vibrant sports culture, with an organised market exceeding Rs 1000 crore. The report further celebrates the success of Indian women athletes and cricketers, highlighting their growth and achievements on the global stage. Platforms such as the Women’s Premier League have provided avenues for women cricketers to showcase their talents, paving the way for greater inclusivity and recognition.
“In the dynamic landscape of sports commercialisation, the synergy between ground, team and franchise fees, athlete endorsements, and media spends by brands has propelled revenue figures to soar past, marking a significant double-digit growth. This report not only delves into the commercial intricacies but also offers insights into the driving forces and impediments to growth, leveraging digital data and emerging trends to maximise value for all stakeholders,” Vinit Karnik, head – sports, e-sports and entertainment, added.
Looking ahead, the report anticipates the Paris Olympic Games in 2024 to be a significant event for Indian athletes, while also forecasting advancements in technology-driven training programs and the integration of artificial intelligence (AI) to enhance athlete performance and fan engagement.