MUMBAI: KPMG under the aegis of CII released a report titled Business of Sports - Shaping a Successful Innings for the Indian Sports Industry. The report identifies key issues in the sports ecosystem and explores measures to develop a private-investment led sporting scenario in the country - one that helps imbibe a sporting culture and achieve the country’s vision of excellence in sports.
The report states that resource scarcity in India makes it difficult for the government to attain the above objectives and calls for collaborative efforts of both the government and private sector towards strengthening the sports ecosystem. Long term sustainability of commercial ventures in the Indian sports sector would require sustained audience interest driven by India’s winning performances at international sporting events.
Sports not only boost the youth and instil pride among citizens, but also facilitate social and economic development of a nation. Sports sector is seen to have a significant socio-economic impact worldwide contributing to 1-5 per cent of national GDP. This can be achieved by building a sporting culture in the country.
However, in India sports is not recognised as an industry yet, limiting corporate investments except in cricket and a few other leagues. Being home to various upcoming leagues and the youngest population in the world, India’s sports sector offers tremendous growth potential.
Ministry of Youth Affairs & Sports Secretary Ajit M Sharan, released the CII - KPMG report at the Scorecard 2014, CII’s National conference on Sports.
Earlier CII National Committee on Sports and Group (Asia) president and Coca Cola Company chairman Atul Singh highlighted Industry’s role of ‘going beyond Sponsorships and CSR activity and the need for a policy shift to recognize Sports as an industry’. He said: “This would help actualise the India@75 vision for broad-basing sports in India, and promote excellence in Sports, by promoting infrastructure development, providing technical support for athletes, as well as grooming talented sportspersons”.
“Corporate funding in sports may be the answer to ignite sports development in India. The gestation period for realizing return on such investments may be long, but global experience shows us that it could be potentially rewarding”, added KPMG partner in India Jaideep Ghosh.
Global sports industry is estimated to be worth around $ 600 billion and growing at a rate higher than national gross domestic product rates around the world. While direct sports revenues are dominated by gate collections, sponsorships, media rights, the sports sector may comprise several segments such as sports tourism, sporting equipment manufacturing and retail, sports apparel, recreational sports, high school and college athletics, as well as associated businesses such as sports marketing, sports medicine, venues & infrastructure, hospitality and merchandising.