Sports industry logs revenue of Rs 15,766 crore in 2023: GroupM ESP
Cricket continued to lead the sports industry in India, accounting for 87% of the total spending in 2023.
Written by FE Bureau
March 20, 2024 03:15 IST
Sports industry, Sports industry news, sports news, GroupM ESP, sports industry revenue
The report said that in the 16 years since the launch of the Indian Premier League (IPL), the sports industry has grown 6.5 times in value. (Reuters)
The sports industry in India witnessed a remarkable surge in 2023, posting a revenue of Rs 15,766 crore (approximately $1.9 billion), which worked out to a 11% growth over 2022, according to a report by GroupM ESP, the entertainment, esports and sports division of GroupM India.
Cricket continued to lead the sports industry in India, accounting for 87% of the total spending in 2023. That translated to a significant Rs 13,701 crore ($1.6 billion) in revenue for the year, according to the report titled ‘Sporting Nation: Building a Legacy’. The report analysed trends from three perspectives – sponsorships (inclusive of ground, team and franchise fees), athlete endorsements and media spends by brands.
The report said that in the 16 years since the launch of the Indian Premier League (IPL), the sports industry has grown 6.5 times in value. “To take a decade-long view, the CAGR from 2013 is a hugely impressive 13.7%,” it added.
Sports other than cricket were categorised as “emerging sports”, thanks to their growth potential. In 2023, their share of the total industry spending decreased to 13%, amounting to Rs 2,065 crore ($249 million). This decline occurred as the franchise cricket teams in India maintained a faster pace of revenue generation. Overall, emerging sports experienced a 1% decline in growth compared to 2022.
The report stated that overall, sponsorship spends saw a healthy 24% growth against the 2022 numbers. “The biggest contributor to the increment was franchise fee, which added almost Rs 1,000 crore ($120 million) to its total in just one year,” it said. The first-ever edition of the WPL being played out among five teams also helped increase this figure.
Together, cricket and emerging sports fetched their celebrities Rs 927 crore ($112 million) in endorsement fees. A gigantic 87% share of all athlete endorsements came through cricketer-related deals and cricket stars saw their income from brands shoot up by 27% over 2022.
The report observed that major sports media conglomerates have seamlessly integrated their offerings across both television and digital platforms. This has given rise to a situation where media houses compete for exclusive rights to major events. “This has become the prime mover for the uptrend in the industry, as media plays the role of the edifice on which mega sponsorship and endorsement deals are curated, leading to the creation of attractive advertising opportunities for brands,” the report said.
The report highlighted a significant uptick in advertising expenses from brands on digital platforms, showing a 40% increase compared to the previous year. In 2023, the total spending on digital platforms amounted to Rs 2,870 crore ($346 million), marking a substantial annual growth rate of 40%, equivalent to a Rs 825 crore increase within just one year.