GroupM ESP, the entertainment, esports and sports division of GroupM India, has unveiled the 11th edition of its annual report- ‘Sporting Nation- Building a Legacy’.

As per the Sporting Nation report, the Indian sports industry in the past 16 years has witnessed a remarkable growth as it has undergone a soaring valuation of Rs 2,400 Crores in 2008 to over Rs 15,000 Crore in 2023.

And this growth, as per GroupM ESP, is not just because of expansion and commercialization, but also the industry’s growing influence on the global stage.

“While cricket remains a dominant force, emerging sports are gaining traction– both in terms of sponsorship reaching Rs 1,528 Crore (21% of the total) and performance with victories in Thomas Cup, 100+ medals at Asian Games and so on. This positive trend paints a vibrant picture of a multi-sporting future for India, ready to inspire and leave a lasting legacy,” the report stated.

Furthermore, the report also pointed out that 2023 delivered an overall sponsorship revenue of Rs 7,345 Crore which was 24% higher than the figure of Rs 5,907 Crore recorded in the previous year.

“Of the three parts to this total, the biggest contribution historically, and in 2023, has been from ground sponsorship- it accounted for 42% of the total with a revenue of Rs 3,117 Crore at a year-over-year growth of 6%. Higher growths, though, were seen in the other two areas. Team Sponsorship took a leap of 22% over 2022, touching a figure of Rs 1,600 Crore. The highest delta was seen in the franchise space, which recorded a whopping 60% growth over last year, by delivering Rs 2,628 Crore- making it the biggest contributor to the absolute incremental value in sponsorship spends in 2023,” the report mentioned.

Commenting on the launch of the report, Prasanth Kumar, CEO, GroupM– South Asia, said, “Predominantly propelled by cricket and bolstered by emerging sports alongside the rise of OTT platforms, we’ve observed a transformative shift in the consumption and celebration of sports in our country. With a packed calendar of both local and international events, another year unfolds, offering ample opportunities to leverage technological advancements. As marketers, we have to seize this chance once more to champion inclusivity, innovation, and the enduring spirit of sport in our country.”

To this, Vinit Karnik, Head– Sports, e-sports and Entertainment, GroupM- South Asia, GroupM, added, “In the dynamic landscape of sports commercialization, the synergy between ground, team, and franchise fees, athlete endorsements, and media spends by brands has propelled revenue figures to soar past, marking a significant double-digit growth. This report not only delves into the commercial intricacies but also offers insights into the driving forces and impediments to growth, leveraging digital data and emerging trends to maximize value for all stakeholders.”

Here are the key highlights from the Report:

1. 2023 further accelerated the growth curve of the sports industry:

The sports industry in India witnessed a remarkable surge in 2023, recording a total revenue of Rs. 15,766 Crore (approx. $1.9 billion USD), marking an 11% incremental value over the previous year.

• In 2023, 87% of the sports industry spending came from cricket, amounting to Rs. 13,701 Crore for the year. This marks a 13% growth from 2022 figures, reaching new milestones.
• Sponsorship spending experienced a notable 24% growth compared to 2022, primarily fueled by a significant increase in Franchise Fee, which contributed nearly Rs. 1,000 Cr within a year. This growth underscores the robustness of India’s franchising ecosystem, exemplified by events like the IPL, WPL and so on.
• Combining cricket and emerging sports, sports celebrities earned Rs. 927 Crore (equivalent to $112 Mn) in 2023. This nearing of the Rs. 1000 Cr milestone reflects the substantial influence our stars hold over the collective consciousness of India.

2. Emergence of OTT Platforms:

Over-the-Top (OTT) platforms played a pivotal role in transforming the sports consumption landscape in India, with significant growth observed in digital spends for events like the IPL and ICC Cricket World Cup.

3. Rise of Participative Sports:

Participative sports have gained prominence, transcended traditional boundaries and fostered community engagement. From golf and cricket to marathon running, these sports have become integral to India’s vibrant sports culture, with an organized market exceeding Rs. 1000 Crores.

4. Women in Sports:

The report continues to celebrate the success of Indian women athletes and cricketers, highlighting their growth and achievements on the global stage. Platforms like the Women’s Premier League have provided avenues for women cricketers to showcase their talents, paving the way for greater inclusivity and recognition.

5. Future Outlook:

Looking ahead, the report anticipates the Paris Olympic Games in 2024 to be a significant event for Indian athletes, while also forecasting advancements in technology-driven training programs and the integration of Artificial Intelligence (AI) to enhance athlete performance and fan engagement.

Click here to view the full report.