India…get, set, go…

The evolving sports ecosystem in India

March 2010
Executive summary
Note: This executive summary must be read in conjunction with the report India… get, set, go…
An initiative of the Advisory team at Ernst & Young, this publication is designed to address the needs of one of the
most promising segments of the Indian market. The publication brings to you an in-depth analysis of the current
state of sport and some of the topical issues hindering the development of sport in our country.

The past few years marked the beginning of a transformation of the sport industry in India. In the past, sport was
unfortunately relegated to a lower priority in a society that encouraged and recognized academic excellence.
However despite the considerable progress made to develop sport in the past decade, we still lag behind in many
aspects in comparison to the other sporting countries like Australia, United States, the United Kingdom and China.

A closer look at these sporting nations reveals that such countries have been able to develop a thriving sports
“ecosystem,” which has evolved to an extent that it supports a result-oriented sports “industry.” The Indian sports
ecosystem has not evolved to that extent even though, the past few years have witnessed increasing traction and
intent among all stakeholders in India to improve the country’s sports ecosystem. The organization of recent and
forthcoming large-scale events and increased activity in sports other than cricket bear testimony to the evolving
approach toward the development of the Indian sports. As such, it is apparent that there is a renewed attempt to
invigorate sports in India and achieve sporting excellence on the international stage. This report examines the
sports ecosystem, which broadly composed of the following six interdependent elements:

The promotion and development of sports in India is largely undertaken by the centre and the states, the Indian
Olympic Association, the Sport Authority of India, the National State Federations and its affiliates. As part of the
country’s overall development strategy the government has planned and implemented a number of schemes to
develop different facet of sport in the country. In order to achieve these objectives, the Government of India has
substantially increased funding for the country’s sports industry, from INR270 million (US$5.58 million) in the Sixth
Five Year Plan (1980–1985) to more than INR46 billion (US$950.82 million) in the Eleventh Five Year Plan (2007–
2012). However despite the considerable progress made in the last couple of years to develop sport in India, a lot
needs to be accomplished to overhaul the current sport governance structure and transform the way sport is
managed in our country.

There is a need to restructure various agencies to facilitate professional management and enhance transparency
and effective utilization of funds. It is also important to integrate sport with formal education system by creating a
structured sports syllabus integrated with central and state-level education boards. By demarcating roles of sports
governing bodies and clearly articulating relationships between each body, chances of successfully meeting the
overall objective of developing sports in the country will enhance. Needless to say, corporate funding needs to
bridge the funding gap and facilitate the speedy development of sport facilities. There is also a case for
establishing a central monitoring agency to maintain an overarching view and resolve conflicts

Another important element of the sports ecosystem is a well-structured system of player development that
creates heroes and champions. The Sports Authority of India plays a pivotal role in administering various schemes
to identify sporting talent and promote sporting excellence. However, despite the presence of some very well-
formulated schemes, the weakness lies in implementation and helping more athletes to achieve their peak
performance levels at large multi-sport events. Moreover, we demonstrate limited ability to create winning teams
for team sports other than cricket

Adopting the framework used by major sporting countries to develop sporting talent, India too needs to formulate
successful player development programs to prepare athletes for a career in sports. There is a need to create
opportunities and facilities to provide trainings to sportsmen to improve their performances at leading world class
events. Career-oriented programs for athletes to help them effectively manage transition post their sporting
career is a must. Moreover, developing a multi layer, multi-disciplinary programs that create a strong support
system of sports professionals who offer assistance to athletes to deliver winning performances at leading events
is very important during the playing years of a sportsman. Last but certainly not the least, improvement in sport
infrastructure and encouragement to mass participation in sports through effective promotion will ensure a larger
pool of talent is always available for India to leverage

Sports infrastructure is a vital element in the overall sports value chain and plays a critical role in the development
of sports in a country. The Ministry of Sports and Youth Affairs’ (MOYAS) draft Comprehensive Sports Policy 2007
highlights the severe shortage of sports infrastructure in the country and the need to fill this gap within a time-
bound framework. Apart from the unavailability of sport facilities, there are significant concerns around the
management of existing infrastructure. These venues are operated primarily for sport events, with little focus on
garnering additional revenues for the long term. This consequently hampers the ability to fund the maintenance or
enhancement of such venues.

Infrastructure created for sports must be built on pragmatic commercial models so that the asset is managed,
maintained and upgraded without burdening the government. Corporate partnership has started making headway
in sports and is bound to increase exponentially in future. The knowledge and the investments of the private
sector combined with institutional and fiscal support from the government will form the potent mix for speedy
development of sport infrastructure in the country. While the role of the government in establishing an
environment to encourage sports cannot be understated, it is equally important to underscore the role that
private sector needs to play to bridge the gap that exists in sport infrastructure.

To attract investments and develop sport infrastructure in the country it is very important to accord national
recognition to sports infrastructure development and regard it as an industry. There is a need to promote urban
planning with provisions for the future development of sports infrastructure. Creation of land bank across tier-II
and tier-III cities and other emerging urban centers of India will further assist investments. Moreover,
encouragement of existing venue owners, including municipalities, sports federations and state associations, to
tread the path of financial self-sustainability is critical to avoid creation of white elephants. This will enable venue
owners to explore innovative revenue streams, which, in turn, will ensure the maintenance of facilities. Clearly,
there is a case to adopt the “road and highway development” model and explore a revenue sharing model as part
of PPP which will encourage private investments in this sector

The live entertainment industry is at a very nascent stage in India, with limited options available, especially in
sports entertainment. The higher propensity to spend presents the industry with a number of opportunities to
bring about a change in the world of sports entertainment. Global sports bodies have been successful in
monetizing different sports through capitalizing on different revenue streams like broadcasting, match day sales,
sponsorship, merchandising to name a few. Even in India, BCCI has succeeded in leveraging the interest of
cricketing fans in India to develop a format like the Indian Premier League. With the popularity of sport in India on
a rise, there is a need to monetize this interest and further the agenda of sports development in the country.

To successfully monetize sports in India, there is a need to develop and create champions to increase popularity of
sports and create heroes who can be role models of the youth. Equally important is the packaging of sports that
needs to be revamped in a manner that attracts people not just to view the sport but to experience the entire
gamut of services leading to the emergence of the concept of “sportainment”.

Sporting events have served as forms of entertainment and recreation since ancient times. Participation and
interest in sport have spread across the globe, permeating all socioeconomic classes. Improved standards of living,
increasing disposable incomes and the resultant rise in the propensity to consume entertainment have facilitated
people’s greater involvement in sports. Indian spectator is increasingly aspiring to engage with sports as means of
entertainment and recreation. However while the demand for the improved services has progressively increased, a
great deal remains to be done before India can offer spectators and fans the level of experience that sport
enthusiasts are accustomed to in other parts of the world.

There is a need to improve existing service levels at sports facilities including hospitality, easy access, improved
and comfortable seating etc and provide a clean environment for spectators and players. Equally important is
creation of sport events at the regional level to promote a sport culture with higher involvement of local media
with the objective of spreading awareness and facilitate higher participation. Spectator interest is generally
governed by presence of sporting heroes and iconic sportspersons which in turn enhances the revenue potential of
a sport. Thus, it is imperative to improve the quality of competition by getting national and international players
who have won laurels at the international stage. The growing popularity of boxing and shooting is an example of
enhanced interest in the sport post the success of key players at the international level.

Hosting mega sporting events such as the Olympic Games or the Commonwealth Games initiates a country to the
global sporting arena and serves as a vehicle of socioeconomic change. These events are catalysts for the rapid
development of sport and a city’s infrastructure and give rise to economic growth. These events are instrumental
in creating an environment that drastically transforms the mindset of millions in a country, leading to greater
acceptability of sport as a career. International sporting and competitive events have majorly boosted the sports
ecosystem in India. The XIXth Commonwealth Games in Delhi, scheduled for October 2010, have resulted in
substantial investments in infrastructure. The Commonwealth Games have also created ample opportunities for
Indian businesses.

To sustain this transformation India needs to develop a strategy to ensure that the investments made to develop
and enhance sport infrastructure for the Commonwealth Games 2010 Delhi can be leveraged to reap the long term
benefits. The emphasis on the development of talent at the grass-root level must be heightened with higher
allocation for development of sport at school level. This will create opportunities for the country’s youth to
consider sport as career and further encourage participation at global sport events. There is also a need to create a
platform for exchange of information and best practices in various facets of multi sport event organization such as
the bidding process, games planning, games operations, talent building and scouting.

The sports industry, although at a nascent stage in India, presents a substantial opportunity for every stakeholder
within the sports ecosystem. With favorable demographics and a rise in disposable incomes, the industry is at an
inflection point and is set for accelerated growth this decade. However, to translate this into tangible results,
policy makers and the private sector will have to tap the emerging potential of this sector. Until date, the
development of sport was more accidental than by design. If India is to achieve visibility on the global platform, a
concentrated effort has to be made for the overall development of sport in India

India… get, set, go…