When we think of sports, we picture the thrill of the game, the passion that fuels us, the incredible players, and the highs and lows of victory and defeat. But beyond the field lies the even bigger game of sports economics and investment. From Hollywood icons like Dwayne Johnson and Ryan Reynolds to global business moguls such as Mark Cuban, Steve Ballmer, Mukesh Ambani, and Gautam Adani, countless celebrities and entrepreneurs have made significant investments in the sports industry.

According to a report from Deloitte and Google, India’s sports ecosystem is undergoing a significant transition and is projected to reach an impressive $130 billion by 2030, growing at a CAGR of 14%. (InIndia’sports market set to soar 2024) With the largest population in the world and a growing sports fanbase among GenZ, India’s sports market is expected to reach new heights.

The Rise of Sports Investment in India

Several factors have contributed to the rise of sports investment in India. Such factors include: -

• Infrastructure: It is common knowledge that infrastructure such as stadiums and other sports facilities are the basis for sporting activities. As of 2024, approximately 100 sports facilities meet international requirements for sports in India. Additionally, India has local sports infrastructure in the name of community centres, athletic facilities and grounds, government-owned college and university grounds, Resident Welfare Association-owned grounds, and private entity-owned facilities.
• Broadcasters and Sponsorships: Spending on sponsorships increased by a healthy 24% above 2023 figures in IPL. For 2023-2027, the IPL’s broadcasting rights fetched a mouthwatering INR 23,575 crore for television media rights won by Disney India and INR 20,500 for digital rights won by Viacom 18. The growth in media rights value is more than 2x from 2017-2022 and places IPL as the second most valued sporting event in the world, right after the US National Football League (NFL). (Mahendra, 2022)
• Grassroots sports development programs: Domestic sports Leagues like the Indian Premier League (IPL) have emerged as prominent participants in the investment market, attracting big corporate sponsors and foreign stakeholders. In line with this, the government’s Sports Authority of India and the Khelo India initiative have helped accelerate this expansion by concentrating on infrastructure and talent development early (Naseem & Naseem, 2022). On the other hand, Private enterprises are also investing in sports marketing and technological advances, providing a conducive atmosphere for future growth. All this provides a positive outlook for tapping and polishing future talents at an early age.

Key Sports’ Investments in India

In a broader sense, Sports infrastructure has emerged as a precursor for investment in India (Rajbil, 2010). Let’s take a look at some of the key aspects that have led to major investment in India’s sports:

• Rise of professional leagues in cricket, football, and kabaddi: The advent of professional leagues such as the IPL, ISL, Pro Kabaddi, and Pro Wrestling League has generated viewership, sponsorships, and investments, propelling the industry’s expansion. The Indian sports sector is estimated to be worth Rs 15,766 crore in 2024, a fourfold growth over the last ten years, according to Sportstar.
  
   
• Rise of digital media: Digital platforms play an important role in this process, with OTT services broadcasting live matches and providing engaging fan experiences. As seen in the data below, there has been large participation and interest in sports across various digital platforms.
  
  

Drawbacks To Sports Investments in India

The sporting sector, just like other sectors, has its fair share of challenges. Some of the potential roadblocks to the growth of the sports ecosystem in India are: -

• Cricket Dominance: The dominant position enjoyed by cricket culture poses a challenge for the growth of other sports as most funding tends to favour cricket over alternative athletic pursuits.
• Fragmented sports management: It is common knowledge that too many cooks spoil the broth; the fact that there exist splits in sports managerial structures makes it difficult, especially during decision-making, as there is no common interest and goals.

Future Outlook of Sports Investment in India

The future of sports investment in India is very bright. For lovers of statistics, athlete endorsement growth in 2024 saw a 24% increase over the previous year, reaching a total value of INR 927 Cr ($Mn 112). It is the largest year-over-year gain in percentage terms since 2015, which exemplifies the upward trend in the market worth of Indian sports and athletes. A very positive outlook indeed.

Conclusion

India is poised to become a global centre for sports and sports-related businesses as long as it continues investing in its sports infrastructure and culture. Investors, both foreign and domestic, should seize this opportunity and make calculated moves while anticipating major returns on their investments.

References

• Naseem, M., & Naseem, S. (2022). Sports Law in India. Kluwer Law International B.V.
• Rajbil A Study of Sports Infrastructure of Sports Promoting Agencies in India. International research journals. 2010; 1:222-231.
• Sports  in  India:  Problems  and  reform  measures.  (2017,  October 30). Jagranjosh.com. https://www.jagranjosh.com/current-affairs/sports-in-india- problems-and-reform-measures-1508848667-1
• India’s sports market set to soar: To reach $130 billion by 2030, Deloitte & Google. Deloitte India. (2024, November 21). https://www2.deloitte.com/in/en/pages/technology- media-and-telecommunications/articles/indias-sports-market-set-to-soar-to-reach-130-bn- by-2030-deloitte-n-google.html
• Mahendra, V. (2022, June 20). Financialexpress. Brand Wagon News | The Financial Express. https://www.financialexpress.com/business/brandwagon-ipl-media-rights-bcci- hits-a-six-while-viacom18-and-star-india-scramble-for-the-ball-2566141/