Showbiz is passe, sports biz is the new cool

Lucknow: Sports as a business proposition in Uttar Pradesh (UP) is witnessing a significant rise, driven by state investment, infrastructure development, and increasing participation across various sports. The state is positioning itself as a sports hub, contributing to economic growth. Here’s how UP is becoming a strong player in the sports business:

1. Infrastructure Investment

• Ekana Sportz City, Lucknow: One of the biggest projects in the state, this multi-sports facility includes a 50,000-seater international cricket stadium, which has hosted IPL, international matches, and other events. The project has attracted substantial private investment and government backing, positioning UP as a venue for global events.
• UP is constructing state-of-the-art stadiums in cities like Varanasi, Kanpur, Meerut, and Ghaziabad, boosting local economies by creating jobs and attracting investment.

2. Government Support

• UP’s government launched a ₹700 crore sports budget for 2023-24, with a focus on developing sporting infrastructure and talent promotion. This shows the state’s strategic intent to build sports as a commercial opportunity.
• Policies like Mission Shakti promote sports among women, while Khelo India initiatives encourage grassroots participation, feeding into the larger sports economy.

3. Major Sporting Leagues and Events

• UP T20 League: Launched in 2023, the UPT20 has become a key driver for sports business, attracting local talent, sponsorships, and media coverage. It boosts local businesses (hotels, transport, food) and creates a significant viewership base.
• Hosting major cricket, kabaddi, and wrestling tournaments brings tourism revenue, and cities like Lucknow are increasingly hosting national and international-level events.

4. Rise of Sports Academies

• The establishment of sports academies, such as the Lucknow Sports Academy and Gautam Buddha University Sports Academy, is contributing to the development of professional athletes. These academies also attract sponsorships, government grants, and partnerships with international sports brands.
• Many private academies focusing on football, hockey, and even badminton are boosting sports as a business, creating employment for coaches, support staff, and administrators.

5. Talent Development and Corporate Sponsorship

• Corporate sponsorship is increasing in UP’s sports landscape, with businesses backing local teams and talent in various leagues. Companies such as Hero, Adani Group, and Tata are sponsoring athletes and events, fueling the business side of sports.
• UP has produced national athletes in wrestling, hockey, and shooting, attracting brand endorsements and partnerships. Players like Saurabh Chaudhary (shooting) are receiving significant commercial attention.

6. Sports Tourism and Local Economy

• The rise of sports events in UP is driving sports tourism, with local hotels, restaurants, and transport services benefiting from the influx of fans. For example, during IPL and UPT20 matches, cities see a spike in tourist activity, which boosts the hospitality and service sectors.
• Additionally, UP is home to sports goods manufacturing hubs like Meerut, which supplies gear to national and international markets. This has resulted in a thriving export business, contributing significantly to the state’s economy.

7. E-sports and Technology

• E-sports and fantasy leagues are gaining popularity in UP, with platforms like Dream11 and Mobile Premier League (MPL) seeing significant user engagement. The rise of e-sports is opening new avenues for tech startups and digital platforms to collaborate with sports leagues and create new revenue streams.
• Local startups are increasingly involved in sports analytics, fan engagement apps, and sports tech, growing the business ecosystem around sports in the state.

8. Job Creation and Economic Impact

• The sports industry is directly and indirectly creating employment in UP, from construction workers building stadiums to event managers, marketing professionals, and digital content creators. The economic impact extends to local vendors, food outlets, and merchandisers.
• With the government’s focus on making UP a sports powerhouse, the sector’s contribution to the state’s GDP is expected to rise significantly.

The growth of sports business in India can be seen across several metrics, from sponsorship values to broadcasting rights and market expansion. Here’s a detailed breakdown by numbers:

1. Sponsorship Growth

• Sports sponsorship market in India was valued at ₹9,500 crore (around $1.14 billion) in 2022.
• Cricket still dominates, accounting for 85% of the total sponsorship value. However, non-cricket sports like football, kabaddi, and wrestling are seeing growth, contributing to 15% of the sponsorship market, with leagues such as ISL (Indian Super League) and Pro Kabaddi League (PKL) gaining traction.
• IPL’s (Indian Premier League) title sponsorship alone was worth ₹440 crore in 2023, showing a 20% increase compared to previous years.

2. Broadcasting and Media Rights

• The Indian sports broadcasting industry, dominated by cricket, was valued at ₹8,700 crore ($1.05 billion) in 2022.
• IPL media rights for the 2023-2027 cycle sold for a record ₹48,390 crore (around $6.2 billion), making it one of the most valuable sports properties globally.
• For non-cricket sports, broadcasting rights values have increased by 30-40% in the last 5 years, with Pro Kabaddi League fetching around ₹180 crore per season in media deals.

3. Sports Apparel and Merchandise

• The Indian sportswear market is projected to grow at a CAGR of 12.4%, expected to reach ₹100,000 crore ($12.2 billion) by 2025, fueled by a growing middle-class population and increasing fitness awareness.
• Companies like Decathlon reported a 20% year-on-year increase in sales in India in 2022, reflecting the demand for sports apparel and equipment.

4. Fitness and Sports Technology Startups

• In 2022, the Indian sports tech startup ecosystem was valued at ₹2,500 crore (approximately $300 million).
• Fitness-related apps and online sports engagement platforms such as fantasy leagues (Dream11, MPL) saw a 5x increase in user engagement during major tournaments. For example, Dream11 is valued at $8 billion in 2023, leading the fantasy sports space in India.

5. Viewership

• IPL 2023 set a record with over 500 million viewers, making it one of the most-watched sports events in the world.
• Non-cricket events like Pro Kabaddi League (PKL) attracted 201 million viewers during the 2021 season, while the Indian Super League (ISL) saw 130 million viewers in its 2022 season.

6. Impact on Tourism

• Major sports events, especially cricket matches, lead to a 15-20% increase in hotel bookings in host cities. The tourism sector saw an estimated revenue boost of ₹2,000 crore during IPL 2023 alone.

These numbers showcase how the sports business in India is rapidly expanding, with cricket leading the way and other sports gaining considerable ground in both commercial value and fan engagement.

The rise of sports in India is fueling substantial business growth across several sectors:

1. Sports Infrastructure: With the increasing popularity of sports like cricket, football, and kabaddi, massive investments are being made in building state-of-the-art stadiums and training facilities. Cities are vying to host international events, and private companies are joining hands to finance these projects, leading to a boom in real estate and construction.
2. Sponsorship and Advertising: Brands are heavily investing in sports sponsorships, with IPL being a prime example. The sports advertising market is growing exponentially, with companies focusing on athlete endorsements and event sponsorships to target large audiences. The emerging leagues in other sports (Pro Kabaddi, ISL, etc.) are adding to this dynamic, attracting corporate sponsorships.
3. Sports Apparel and Merchandise: The rise in sporting culture has led to an increased demand for sportswear and accessories, leading to a surge in sales for companies like Nike, Adidas, and Puma. Local brands are also emerging, capitalizing on the growing fitness and sports enthusiast base in India.
4. Media Rights and Broadcasting: Sports broadcasting rights are becoming a hot commodity, with broadcasters and streaming platforms willing to pay huge sums for exclusive rights. Digital platforms, such as Hotstar, are seeing a surge in subscriptions and ad revenue during major tournaments, contributing to the digital economy.
5. Tourism and Hospitality: Major sporting events are becoming tourist attractions, boosting local economies through increased hotel bookings, food, and beverage sales, and travel. Cities that host sports events see a marked increase in visitors, driving up revenues in tourism.
6. Sports Startups and Technology: The growth of sports tech startups, offering analytics, training aids, fitness tracking, and online engagement, is revolutionizing the industry. Companies providing services such as fan engagement, fantasy leagues, and e-sports are booming, driven by a digitally connected youth population.

The rise in sports is thus having a multi-dimensional impact on businesses, providing a platform for growth across industries. ports as a business proposition in Uttar Pradesh is booming, with infrastructure investment, talent development, and government backing laying the groundwork. The ecosystem benefits from corporate sponsorship, job creation, and an expanding local sports economy. With UP hosting more sporting events, establishing sports academies, and developing e-sports, the state is rapidly becoming a key player in India’s sports business landscape.