LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
A
PROJECT REPORT
on
Financial System of Sports in India
Submitted To :
DIRECTORATE OF OPEN & DISTANCE LEARNING
LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION,
Gwalior, M.P. - 474002
Submitted To : Submitted By :
Dr. ASHISH PHULKAR Name : A k r i t i S i n g h Class
Director, : DSM
Open & Distance Learning, LNIPE. Roll no : DSM 05
Semester : First
SESSION : 2024-25
LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
TABLE OF CONTENT
Sr. No. Topic
01 Title Page
02 Acknowledgement
03 Introduction of the Topic
04 Aims & Objectives
05 Learning Outcome
06 Conclusion
07 Pictorial Evidence
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LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
ACKNOWLEDGMENT
The author would like to express the deepest gratitude to Dr. Ashish Phulkar for
his generous support and financial contribution to our sports management
project.
His commitment to foster excellence in the discipline of Sports Management
supporting innovative ideas and projects have made it possible for the author to
provide this case study on “Financial System of Sports in India.”
The author is incredibly grateful for his belief in the vision and the trust that have
been placed.
Akriti Singh
Author
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LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
Introduction
The world of sports serves as a powerful mirror reflecting the economic prowess and trajectory
of nations. Much like Sherlock Holmes deducing the presence of the Atlantic from a drop of
water, a future historian could glean the rise and fall of empires and economies by simply
perusing Olympic medals tables in the 20th century. From the decline of the British Empire
to the emergence of Germany, Japan, and China, the intricate dance between sports
achievements and economic power paints a vivid picture of global shifts. The USSR's strong
presence in the medal tally until the 1990s and its subsequent decline mirrored the economic
challenges it faced. On the flip side, China's rise in the medal tally correlates with its economic
ascent. In India, the parallel rise of sports achievements and economic progress weaves a
compelling narrative.
Post-independence, India's economic development was anchored in the pursuit of self-
sufficiency. The focus on domestic markets led to a complex and somewhat insular economy,
with goods and services that were distinctly Indian but lacked global competitiveness.
However, the liberalization wave in the early 1990s transformed India's economic landscape.
As GDP and GDP per Capita witnessed a steady rise, so did India's medal tally and
international sports rankings. Sports is not merely entertainment; it's a catalyst for economic
growth. Beyond the thrill of competition, sports can stimulate the economy akin to tourism.
Events like the Indian Premier League (IPL) showcase the revenue potential of sports through
advertising, sponsorship, branding, and distribution.
Aims and Objectives
To examine various governance levels in India in respect of Sports and identify the financial
system and its elements involved in governance. These elements majorly being Sports
Marketing, goods manufacturing, events, and infrastructure Development.
Conceptual Framework
Governance
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LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
The governance of sports in India is managed by several
bodies, including the Ministry of Youth Affairs and
Sports (MYAS), the Sports Authority of India (SAI), and
various National Sports Federations (NSFs). These
organizations are responsible for policy-making, funding
allocation, and overseeing the development of sports
infrastructure and programs. The National Sports
Development Fund (NSDF) is a significant initiative that provides financial assistance for
training, infrastructure development, and international exposure for athletes.
The budget allocation for Ministry of Youth Affair and Sports has seen a significant rise, from
Rs. 466 crores in 2004-05 to Rs. 3397.32 crores for FY 2023-24. This marks an 11% increase
compared to FY 2022-23 and is the highest since 2010.
The SAI manages various sports facilities and provides training and coaching to athletes
across the country. The organization has set up various regional centers and academies to
promote different sports and develop talent at the grassroots level.
There are also 2 pipelines to support the sports infrastructure.
1. National Investment Pipeline(NIP)
• Over 90 NIP projects for stadiums and sports complexes are underway.
• Sporting projects worth $1.49 Bn have been approved in which the Private sector will have
a 21% share in NIP projects’ implementation.
• Vishakapatnam Sports City- a NIP project worth US$ 129 Mn will be completed by 1st Aug
2024.
2. National Monetization Pipeline
• Two National Stadiums and two SAI regional centers for monetization in FY22-25. The
indicative monetization value of these assets is $1431.25 Mn.
• The mode of monetization for these would be the operation, management, and development
agreement (OMDA) model.
• Private concessionaire gets a 30+30 years grant of OMDA from SAI for an upfront premium,
revenue share, and annual fees.
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LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
Khelo India Scheme:
The Khelo India Scheme, launched in 2016-17, has seen significant financial growth over the
years, reflecting the government's commitment to promoting mass
participation and excellence in sports across India. The scheme aims
to foster sports culture and achieve sporting excellence nationwide.
It encourages sports participation throughout the country,
leveraging sports' holistic influence for the development of children and youth,
community development, social integration, gender equality, a healthy lifestyle, national
pride, and economic opportunities related to sports development. The state governments are
also taking proactive measures to develop sports infrastructure in the country. Haryana, for
the execution of the Khelo India Youth Games of 2022 spent over $18 Mn on infrastructure.
Odisha to host FIFA U-17 Women’s World Cup in October 2022 and Men’s Hockey World
Cup in January 2023 has constructed 89 multi-purpose indoor stadiums in urban areas with an
investment of $86.66 Mn.
KIRTI (Khelo India Rising Talent Identification) is a government initiative aimed at
identifying and nurturing sports talent across India. Launched in March 2024 with Phase 1, it
focuses on identifying athletes from grassroots levels and combating issues like drug addiction
and excessive screen time among children aged 9 to 18. Phase 2 inaugurated by Dr. Mansukh
Mandaviya, Union Minister for Youth Affairs & Sports, on 19 July 2024 in New Delhi. The
programme uses modern ICT tools and global best practices to create an accessible, athlete-
centric talent identification system. The programme's goal is to achieve 20 lakh assessments
in the FY 2024-25 by onboarding all states and treating districts as units of assessment. The
aim is to create a pool of talent capable of winning medals at global competitions like the
Olympics and Asian Games.
Sports Events
Sports events in India are financed through a combination of government funding, private
sponsorships, ticket sales, and broadcasting rights. Major events like the Indian Premier
League (IPL), Pro Kabaddi League, and Indian Super League (ISL) attract substantial
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LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
investments from corporate sponsors and media companies. The revenue generated from these
events is reinvested into the development of sports infrastructure and talent nurturing.
1. IPL
• Indian Premier League is one of the major sports events of India.
• Last 11 years IPL is being held every year in India.
• This is the 12th edition of the lavish cricket league.
2. ISL
• ISL or Indian Super League was introduced in 2013.
• This football league has earned huge popularity as there is presence of famous domestic and
international players.
• In this, 10 teams compete against each other.
• 2019 is the 6th edition of the ISL.
3. Hockey India League
• Hockey is the most adventurous sports in India.
• This game has become more popular amongst Indian audiences.
• HIL was started in 2013 with 6 domestic teams.
• Hockey India League is held across six North Indian states.
4. Pro Kabaddi
• 8-team kabaddi tournament started in 2014.
• It is conducted across 12 Indian cities i.e. in Delhi, Mumbai, Chennai and Kolkata.
• Patna Pirates happens to be the most successful in Pro Kabaddi tournament.
• Pro Kabaddi will see its 6th edition in November 2019 as 2018 was the 5th edition.
5. Women’s Kabaddi Challenge
• It is much like the men’s Pro Kabaddi League.
• It was started in 2016.
• It made its entry with three teams, namely Fire Birds, Ice Divas and Storm Queen.
6. Premier Badminton League
• Premier Badminton League was started in 2013 along with 8-teams.
• Famous players like Carolina Marin, Saina Nehwal, P. Kashyap, P.V. Sindhu, Srikanth
Kidambi
and many more participated.
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• The 5th season of the tournament is going to be held in 2019.
7. Premier Futsal
• It was found in 2016.
• Very renowned football players like Ryan Giggs, Cafu, Michel Salgado, Ronaldinho and
many
more participated.
• In Dubai tournament held its 3rd edition.
• Expectation is that the 4th edition is to be held in India in 2019.
8. I-League
• One of the most famous football leagues in India is I- League.
• This has 11-teams and the tournament is held between October to March.
• The tournament will be held in 2019.
9. Indian Women’s League
• This League got started in 2016.
• The Rising Student’s Club was the winner.
• This is the first-ever professional league for women in India.
• The states of Haryana, Jaipur, Puducherry, Mizoram, Pune, Manipur and Odisha
participated.
• The 4thedition of this tournament is to be held in 2019.
10. Pro Wrestling League
• The tournament is franchise-based.
• It has six teams for participation.
• The team has a combination of both domestic and foreign players.
• NCR Punjab Royals is the winner of 2018.
In all of this, Cricket, an undoubted powerhouse, continued to command an 85% share of the
overall revenue, leaving 15% to the burgeoning realms of kabaddi and football. However, the
report showcased a remarkable narrative where emerging sports outpaced cricket in growth,
boasting an 87% surge in revenues compared to cricket's 44% in 2022.
These events organized in India hold tremendous bearing on the population. Sports
sponsorship in India experienced an unprecedented upswing, with spends on-ground, team,
and franchise witnessing a staggering 105% growth from 2021, culminating in a total of
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LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
₹5,907 crore. The surge is attributed to the extended IPL matches, addition of two new IPL
teams, marquee events like the ICC T20 World Cup, Asia Cup, FIFA World Cup, and
resumption of emerging sports tournaments. Further, the industry has been witnessing an
increase in female sports viewers worldwide. For example, women's viewing of the IPL 2023
increased by 23% in comparison to 2019 according to Broadcast Audience Research Council
(BARC) India data.
Sports Goods Manufacturing
India has a robust sports goods manufacturing industry, with key hubs in Jalandhar (Punjab)
and Meerut (Uttar Pradesh). The industry produces a wide range of sports equipment,
including cricket gear, footballs, and fitness equipment. Leading manufacturers like Nivia
Sports, SG, and Cosco contribute significantly to the economy and export a substantial portion
of their products globally. The industry is supported by small and medium-sized enterprises
(SMEs) that play a crucial role in meeting domestic and international demand.
Infrastructure Development
The development of sports infrastructure in India has seen significant progress in recent years.
Initiatives like the Khelo India scheme aim to create a comprehensive sports ecosystem by
building facilities at the grassroots level. The Sports Authority of India (SAI) manages various
sports complexes and training centers across the country. Public-private partnerships (PPPs)
are also encouraged to attract private investments in infrastructure projects.
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LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
India houses approximately 100 sports facilities fulfilling international standards of sports
infrastructure. In addition, there are government-owned college and university grounds,
community centers, sporting facilities and grounds owned by urban local bodies, grounds
owned by Resident
Welfare Associations,
and facilities owned by
private entities.
Notably, 77 sports
infrastructure projects
and 1000 Khelo India
Centres have been
initiated across the
nation as part of the scheme. The Ministry of Youth Affairs & Sports has greenlit 282 sports
infrastructure projects worth INR 2,328.39 crores, representing a diverse range of sporting
activities. Additionally, the Rajiv Gandhi Khel Abhiyan receives INR 9000 crore to support
sports competitions.
Modern training facilities equipped with the latest technology and expert coaching are being
set up not only in metropolitan cities but also in tier 2 and 3 cities. Athletes now have access
to sports science, nutritionists, physiotherapists, and mental conditioning experts, which helps
optimize their performance.
CSE is one of the examples of a modern facility offering advanced training for elite athletes.
It provides a holistic environment for athletes with training grounds, fitness centres, sports
science, and nutrition services under one roof, aiming to further revolutionize Indian sports
infrastructure.
India’s improved sports infrastructure has paved the way for hosting and participating in
prestigious global events like the Commonwealth Games, Asian Games, and FIFA U-17
World Cup. These events have showcased India’s capabilities and spurred infrastructural
developments in various cities.
SESSION : 2024-25
LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
Sports Marketing
Often, the meaning of the word "marketing" is interpreted as the usual ability of conducting
business in enterprising and clear ways or as a general understanding of economic
management methods, primarily managing the sale of producer products. However, this is
only a simplified interpretation of this concept.
Currently, there is no consensus among economists on the definition of marketing.
Undoubtedly, its main attribute is consumer orientation. Marketing can be interpreted as a
market philosophy, strategy and tactics of behavior in the market of not only manufacturers,
suppliers and intermediaries, but also consumers, practical economists, scientists and
necessarily government bodies.
Sports marketing defines sports activity as a specific product (service) and involves its own
marketing approach in the field of physical culture and sports. To successfully promote sports
goods and services, it is necessary to develop a marketing policy of the institution, which will
determine the types of sports services and pricing policy that can be provided.
Marketing in India is a growing industry, driven by the increasing popularity of sports leagues
and events. Companies like IMG-Reliance, Sporty Solutionz, and Baseline Ventures
specialize in sports marketing, offering services such as sponsorship management, event
promotion, and brand partnerships. These companies help sports organizations enhance their
visibility, engage with fans, and generate revenue through strategic marketing initiatives.
Sports Retail
Sports retail is a niche segment of retail. It generally refers to retail sale of sports
goods/equipment, apparel, shoes and accessories (such as sunglasses, watches, headband etc.).
Sports retailers can be multi-brand retailers or single-brand retailers, they can sell products for
a specific sport or cater to multiple sports. For instance, Reebok sells products for a number
of sports including football, rugby and tennis while Nordica (Italy) specialise in footwear,
equipment and accessories (jackets, gloves, etc.) for a single sport – skiing.
The sports retail sector in India is expanding, with major players like Decathlon leading the
market. Decathlon offers a wide range of sports products and has established numerous stores
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LAKSHMIBAI NATIONAL INSTITUTE OF PHYSICAL EDUCATION
across the country. The retail sector caters to the growing demand for sports equipment and
apparel, driven by increasing health consciousness and participation in sports activities. The
presence of both international and domestic brands ensures a diverse range of products for
consumers.
The retail market is also influenced by the level of sports participation, passion for a specific
sport, availability of infrastructure, the country’s topography and climate. In many countries,
government closely monitors the sports sector and play a key role in its development. This is
because the development of the sports sector is closely linked to the economic development
of the country, improvement in public health and human capital formation.
The government adopted a policy of ‘Using sport to build healthy and active communities’
and commissioned various studies. Despite political resistance, a governing body called the
Australian Institute of Sports (AIS) was established in 1981 for focused infrastructure
development to facilitate the development and training of Australian sportspersons. In 1989,
the government decided to form the Australian Sports Commission (ASC) and merge it with
the AIS to ensure holistic development. The ASC is one of the most active global institutions
in promoting sports at the grassroots level and in training and development of sportspersons.
For instance, brands like Reebok and Nike have modified their global strategy; in India, they
sponsor cricket and retail cricket equipment, clothing and accessories. They also have to work
closely with the government and federations for equipment/goods procurement, event
sponsorship, etc.
Pictorial Evidence
KIRTI Scheme
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Sports Goods Manufacturing in Jalandhar
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Learning Outcome
The author notes that the financial system of sports in India is a complex and evolving
landscape, marked by the collaboration of various stakeholders, including government bodies,
private enterprises, and sports organizations. Through effective governance, strategic
investments in infrastructure, and innovative marketing and retail efforts, India is creating a
robust ecosystem that supports the growth and sustainability of sports.
The integration of different financial elements—such as sports events, goods manufacturing,
and strategic partnerships—ensures a diversified revenue stream that bolsters the sports sector.
Government initiatives, private funding, and public-private partnerships play a crucial role in
building state-of-the-art facilities, nurturing talent, and promoting sports at all levels.
It is pertinent for any sports event manager or an organizer to understand the demographic of
sports industry before inviting investors or investing in any venture to avail beneficial scheme,
and better audience.
Conclusion
As India continues to invest in its sporting future, the country's commitment to enhancing its
sports financial system will pave the way for greater achievements and global recognition. By
fostering a financially stable and dynamic sports environment, India is poised to become a
significant player in the international sports arena.
This comprehensive approach to financing in sports not only elevates the performance and
infrastructure of various sports but also contributes to the overall development and well-being
of athletes and enthusiasts across the nation. As the journey progresses, the collaborative
efforts of all stakeholders will drive India's sports industry to new heights, ensuring long-term
success and growth.
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