Vinit Karnik, Head – Entertainment, Esports & Sports, GroupM South Asia, speaks to Neeta Nair about the tenth edition of ‘Sporting Nation in the Making’ and why 2022 was a spectacular year for the Indian sports industry which crossed the INR 14,000cr mark

Edited Excerpts

What is the biggest takeaway from the GroupM ESP India Sports Sponsorship Report, 2023?

Indian Sports Industry smashes records, surpasses INR 14,000cr mark for the first time, which in terms of year-on-year incremental delivery, reflects a growth rate of 49% over 2021. It was a matter of great pride for the ecosystem when the industry crossed the INR 10,000cr mark for the first time, after a decade since the launch of the IPL, and even though there was turbulence during the pandemic years, 2022 has given a clear message that INR 20,000cr is just around the corner. That INR 10000cr peak would be scaled in 2022 was never in doubt, but the way in which it was achieved was impactful, and the positivity was ubiquitous.

For the first time, total sports industry spending exceeded INR 14,000cr what are the factors that led to that?

The overall increase in spends was due to the rise in the number of IPL matches (60 to 74), the addition of two new IPL teams (increase in Team Sponsorship spends & Franchise Fee), the ICC T20 World Cup, Asia Cup, FIFA World Cup, and the return of emerging sports events and tournaments like PKL, marquee marathons, Maharashtra Open, and Commonwealth Games 2022. The Indian Men’s Cricket Team played 67 matches across all three formats of the game as against 36 in the previous year, which itself signifies a huge rise in the overall monetization potential for their fixtures.

How has cricket fared as compared to the other sports in the country?

Cricket is the one sport that has been playing on the front foot in terms of steering the industry through the fluctuations of the path of commercialization over the years. The franchise format was introduced to the nation in 2008 with the unveiling of the IPL, a property that has since been the money-spinner of Indian sports.
The 2022 performance further serves to highlight this position of pre-eminence for the cherry and timber sport in our minds, as we saw it contributing a mammoth 85% of the total Sports Industry revenue, which equates to INR 12115cr. Despite the huge base value in cricket, the growth we saw for the No.1 sport in India was 44% - in terms of sponsorship, endorsement, and ad expenditure.

In Sponsorship Spends (Ground, Team and Franchise), cricket delivered 75% of all sports, whereas the corresponding number for Endorsement was 85%. In media spends by brands, the role of the top-scorer was even more pronounced, with a whopping 94% of all ad expenses being linked to cricket-related content, across all media vehicles. With our country serving as the epicentre of cricket consumption in the world, it is no surprise that Indian brands are making strategic investments in foreign leagues of the sport, thereby ensuring that all grounds are covered as they are bowling to the field, in terms of engaging with followers of the action from the 22 yards!

Most of 2022, especially post the first two months was Covid free, how did that impact on ground sponsorships of various sports?

Although the Covid pandemic had created obstacles for various domestic short format leagues in India, 2022 proved to be a successful year for these competitions, leaving the uncertainties of the past behind. The Covid pandemic created significant obstacles for the sports industry, which was previously on the fast lane. However, the pandemic also presented opportunities for innovation in the area of fan engagement. The sector faced tough circumstances, but consumer behavioural patterns saw significant shifts, with trends accelerating out of necessity, particularly in the realm of digital adoption. Consequently, there have been clear changes in the approach taken by brands regarding spending on sports properties.

The 49% value growth witnessed in 2022 implies a three-year Compound Annual Growth Rate (CAGR) of 14%. Despite the setbacks faced in 2020, the post-pandemic performance of the sports industry, in quantitative terms, has been more rewarding than the years leading up to the force majeure event that threatened to disrupt much more than just the sports world.

Which are the emerging sporting properties which have shown promise last year and expected to make it big this year too?

Emerging Sports, a term we are using to collectively refer to sports other than cricket because of the high growth potential they represent, had an impressive year and contributed to 15% of the overall Industry scoreboard. While the pandemic wreaked havoc for these sports, 2022 saw them bouncing back strongly, with an 87% growth over 2021, at an overall level. The higher share in the area of Sponsorship (25%), as against Media Spends (6%) and Endorsements (15%), could be viewed, among other factors, as indicative of a proclivity from certain brands to get into symbiotic relationships with growing properties, even if they are smaller in scale at that point in time. Digital media had a higher share of ad spends for emerging sports (10%) compared to TV (5%). Participative sports like marathons and golf saw encouraging post-pandemic resurgence. The emergence of new franchise leagues and events like the Ultimate Kho Kho also showed promise for the future. Overall, 2022 was a year that highlighted the potential of emerging sports as they played a supporting role to perfection.

Apart from IPL today, which are the other leagues and sporting properties that really contributed to the growth of sports?

In 2022, India witnessed the successful return of several franchise leagues, which began with Kabaddi. The Pro Kabaddi League (PKL) made a comeback with two consecutive seasons, doubling the joy for the fans. The first season of the 2021-22 campaign took place followed by the 2022 edition. The top Football event in our nation, the Indian Super League (ISL), is now an important part of our sports calendar, and along with the IPL, has been seeing uninterrupted action ever since its inception, even in the pandemic-afflicted 2020. The pandemic caused some setbacks for participative sports like marathons, but 2022 witnessed the successful return of long runs. The Delhi Half Marathon, Mumbai Marathon, Bangalore 10k, and Kolkata 25k were all successful events in India, which uplifted the spirits of everyone involved.

With the return of these franchise leagues & sports events, the sports industry in India continued to thrive, bringing in more opportunities for athletes and creating a positive impact on the country’s economy. The successful return of these sports events in 2022 was a testament to the resilience and determination of the organizers, players, and fans who worked tirelessly to ensure the safe and successful execution of these events.