The business of sports will generate an annual revenue nearing USD two billion in India by 2015,primarily boosted by the income from the TV media and sponsorships,as per a study.
The country would witness a significant surge in TV advertising and sponsorship income in the coming years,making India the second-best revenue generator after Brazil among the BRIC countries (a four-nation bloc of emerging countries that also includes Russia and China),found the study conducted by global consultancy giant PriceWaterhouseCoopers (PwC).
As per the study,the sports revenue in India would witness an average annual growth of 5 per cent to reach a level of USD 1.89 billion in 2015.
However,the size of Indian sports business would still be very small on a global scale and would account for just about 1.3 per cent of the worldwide revenues of USD 145.3 billion in 2015.
However,the growth rate in India would be higher than the worldwide average annual growth of 3.7 per cent during the five years to 2015.
PwC attributed the growth to mainly an “improved economy,a rebound in TV advertising,the on-going migration of sports to pay TV and the resurgence of financial services and automobile companies to sponsorship.”
It noted that the sports industry revenues in the BRIC countries would continue to outperform the global average,as major sports events continue to be staged at these places,although the margin of outperformance could decline from the levels seen in the recent years.
In the last two years,India has successfully hosted events such as Grand Prix and Commonwealth Games.
The BRIC countries witnessed a compounded annual growth rate of 7.7 percent between 2006 and 2010,while the projected growth rate for 2010-2015 is 4.5 per cent.
Still,the growth would mainly come from the emerging sports markets in the BRIC countries and the Middle East and these markets would continue to offer scope for the development of new commercial opportunities,both in domestic and international sports events,it noted.
The report said that sports industry revenues are based on four key segments such as gate (generally referred for ticket sales),sponsorship,media rights and merchandising.
Globally,sponsorships are estimated to generate USD 45.3 billion in revenue in 2015 to become the largest segment in sport. It will show a compound annual growth rate of 5.3 percent between 2011 and 2015.
Further,revenues from media rights will see a fairly healthy growth from USD 29.2 billion in 2010 to USD 35.2 billion in 2015. Merchandising will also see a modest growth.