As India’s sports sector recovers after COVID, cricket remains king

As the Indian economy continues to recover from the slowdown experienced during the COVID pandemic, the sports industry seems to be recovering at a healthy pace recently. With the release of barriers and the easing of restrictions in several parts of the country, a live broadcast of some sporting events has been seen in the country. Most of the financial contribution came from cricket, which reportedly accounted for 87% of the sports industry’s total revenue.

Before the Republic’s first “India Economic Summit,” which brings together some of the industry’s most influential names to discuss the world’s fastest-growing large economy, here’s an in-depth look at how the sports industry has weathered the challenges. The performance of individual sports caused by the COVID pandemic.

Sports overview

According to a report by GroupM ESP, the COVID pandemic had a devastating impact on the Indian sports industry, with revenue shrinking 34% last year. Most of the effects were felt in the early part of last year, when protracted restrictions put the industry at a standstill.

According to a report by Sundar Raman of the former COO of the IPL, “The Impact of COVID-19 on World Cricket and Indian Sports Revenue,” cricket accounts for 85 percent of India’s sports economy. Meanwhile, football and kabaddi are different. In terms of revenue, broadcasts account for 65 percent and sponsorship for 30 percent, while ticket revenue is only 5 percent.

Revenue from sponsorship, celebrity referral, and media expenses

According to the same report, India’s revenue from sponsorships, public referrals and media spending on sports properties fell from Rs 9 trillion a year earlier to Rs 5,894 billion in 2020. In terms of the contribution of individual sports, cricket accounted for 87 per cent of turnover, while other sports accounted for 13 per cent.

Most of the cricket stake came from the IPL, India’s largest franchise league. It is organized annually by BCCI. Cricket donated Rs. 5,133 million, while other sports accounted for 761 million rupees. This is because most tournaments were either postponed or canceled last year, except for the IPL in September and the ISL in November.

Most of the total size of the sports market (Rs 5,894,000,000) can be attributed to the media. Advertising on television, digital and print media amounted to Rs 3,657 million, or about 62 per cent of total expenditure. However, as several events were canceled, this segment also declined by 30% in 2020.

At a time when most segments of the industry were declining, the recommendations from sports celebrities rose 5 percent to 564 million rupees. Cricketers, for example, grew 13 percent to Rs 517 million in 2020. India’s test and ODI captain Virat Kohli received the majority of statements when he crossed the 200 million rupee mark. He was followed by other cricketers MS Dhoni and Sachin Tendulkar. Meanwhile, other famous athletes such as the shuttle PV Sindhu, boxer Mary Kom and tennis star Sania Mirza also received several brand recommendations.

How has the IPL model helped other sports increase viewership?

According to a report published by Kreedon, with the contributions of Media Partners Asia, IPL has generated the most revenue for the Indian franchise leagues. IPL is estimated to have contributed $ 5.3 billion, while the rest of India’s sports industry accounts for $ 1.3-2.7 billion.

Thanks to the success of the IPL since its inception in 2008, the model of the franchise league has been replicated in other sports such as kabaddi, football and others. The Pro Kabaddi League is said to have received more than 1.2 billion views. Meanwhile, the ISL season 2019-20 garnered a record 34 million viewers.