RUMBLE UNDER OUR FEET - Business of Sports - Rumble Under Our Feet
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TITLE Business of Sports – Rumble Under Our Feet YEAR November, 2018 Media & Entertainment, Fine Arts, Luxury and Sports Banking Group, YES BANK; French Trade AUTHORS Commission - Business France India No part of this publication may be reproduced in any form by photo, photoprint, microfilm or any COPYRIGHT other means without the written permission of YES BANK Ltd. & French Trade Commission - Business France India This report is the publication of YES BANK Limited (“YES BANK”) and so YES BANK has editorial control over the content, including opinions, advice, Statements, services, offers etc. that is represented in this report. However, YES BANK will not be liable for any loss or damage caused by the reader’s reliance on information obtained through this report. This report may contain third party contents and third-party resources. YES BANK takes no responsibility for third party content, advertisements or third party applications that are printed on or through this report, nor does it takes any responsibility for the goods or services provided by its advertisers or for any error, omission, deletion, defect, theft or destruction or unauthorized access to, or alteration of, any user communication. Further, YES BANK does not assume any responsibility or liability for any loss or damage, including personal injury or death, resulting from use of this report or from any content for communications or materials available on this report. The contents are provided for your reference only. The reader/ buyer understands that except for the information, products and services clearly identified as being supplied by YES BANK, it does not operate, control or endorse any information, products, or services appearing in the report in any way. All other information, products and services offered through the report are offered by third parties, which are not affiliated in any manner to YES BANK. The reader/ DISCLAIMER buyer hereby disclaims and waives any right and/ or claim, they may have against YES BANK with respect to third party products and services. All materials provided in the report is provided on “As is” basis and YES BANK makes no representation or warranty, express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, title or non – infringement. As to documents, content, graphics published in the report, YES BANK makes no representation or warranty that the contents of such documents, articles are free from error or suitable for any purpose; nor that the implementation of such contents will not infringe any third party patents, copyrights, trademarks or other rights. In no event shall YES BANK or its content providers be liable for any damages whatsoever, whether direct, indirect, special, consequential and/or incidental, including without limitation, damages arising from loss of data or information, loss of profits, business interruption, or arising from the access and/ or use or inability to access and/or use content and/or any service available in this report, even if YES BANK is advised of the possibility of such loss. Maps (if any) depicted in this report are pictorial representation only and do not purport to be the political map of any nation or State and are not drawn to scale. YES BANK Ltd. Nikhil Sahni Group President & Global Head, MNC Corp. Banking Govt. Banking & Strategic Govt. Advisory Karan Ahluwalia Senior President & Country Head, Media & Entertainment Fine Arts, Luxury and Sports Banking Group Abhishek Issar Senior Vice President, Media & Entertainment Fine Arts, Luxury and Sports Banking Group Northern Regional Office CONTACTS 48, Nyaya Marg, Chanakyapuri New Delhi – 110 021 Tel : +91-11-66560562 Email : nikhil.sahni@yesbank.in karan.ahluwalia@yesbank.in abhishek.issar@yesbank.in Website : www.yesbank.in Registered and Head Office YES BANK Limited, YES BANK Tower IFC 2, 15 Floor, Senapati Bapat Marg Elphinstone (W), Mumbai 400 013, India Tel : +91 22 6669 9000 Fax : +91 22 2497 4088 Business of Sports – Rumble Under Our Feet | 3
Message France is a major player on the world stage of sport. European champion of hosting major international sports, France, after having hosted Euro 2016, World Championships of Men’s Handball, Wrestling and Ice Hockey in 2017, Ryder Cup in 2018, Women’s Football World Cup in 2019, will host Rugby World Cup in 2023, and the world’s biggest sporting event, the Olympic and Paralympic Games, which will be come back to Paris in 2024, a century after the last Summer Games organized in France. And how not to mention the Tour de France, Roland Garros, the 24 Hours of Le Mans or the great races such as the Vendée Globe or the Route du Rhum, as many world renowned prestigious events, which represent not only the modernity of the country but also the attractiveness of its territories. They are a great showcase of French know-how and expertise in organizing major events in all its aspects as well as of all the numerous companies which are from this sector in constant growth. Sports equipment, architecture, construction, security, telecoms, ticketing, signage, infrastructure management, event management, opening and closing ceremonies, hospitality, catering, performance measurement, spectator experience, training, communication, media, digital solutions ... the French offer is both complete and efficient. It encompasses, within the sport sector, big French groups, SMEs, and innovative start-ups from the French Sport Tech. One of the objectives of France’s sports diplomacy, as defined by the Ministry of Europe and Foreign Affairs, is to provide support to the companies in this sector to export, in close cooperation with French Trade Commission-Business France, the Ministry of Sports and the Ministry of Economy and Finance. It is primarily in this context that I have the great pleasure of coming back to India with a delegation of companies, representative of this French know-how, at the “France India Sports Business” symposium organized by French Trade Commission- Business France at Embassy of France in New Delhi. France is already present in India in the field of sport. It wants to strengthen and develop this presence with our Indian partners. But sports diplomacy is also the exchange, the interaction around multiple paths of dialogue around sport as an instrument of sustainable development, around the values that sport, universal language if any, conveys and promotes. India and France share these values and they have the will to put them into action. That is why during this trip I am particularly pleased to have the opportunity to interact with our Indian friends on the theme of our relations in the field of sport, and more generally on the place of the sport in our society. I thank Embassy of France, in particular the French Trade Commission - Business France India team, for organizing this symposium, whose results, I am sure, will be very fruitful. H.E. Mr. Philippe Vinogradoff French Ambassador for Sports, French Ministry of Sports Business of Sports – Rumble Under Our Feet | 5
Message France’s skills and talent in both the sports and business sectors have brought it international prestige and recognition. France has been hosting major international sports events every year, including the Tour de France since 1903, 24 Hours of Le Mans motorcycle race since 1923, the French Open (Roland Garros) since 1928, and the Vendée Globe yacht race since 1989. France is a sporting nation: sixty-four percent of French people play sports at least once a week, and more than 16 million people belong to a sports club. Every year, the Business France Head Office in Paris hosts the ‘International Meet for Major Sports Events’ (RIGES) in France, which brings together more than 200 international sports stakeholders to share their thoughts and experiences and take stock of public policies carried out for the development of sports, sports equipment and the organisation of forthcoming global events. France’s know-how and expertise in staging sporting events and manufacturing sports goods and equipment will be showcased on a larger-than-life scale in Paris when it hosts the 2024 Summer Olympics. Paris 2024 is planning to use renewable and recovered energy to reduce carbon emissions by 55%, compared with the Rio 2016 and London 2012 games, in line with the climate change commitments of the Paris Agreement. 95% of the venues needed to host the 2024 Olympic Games already exist. France has almost 2,70,000 sports facilities, including 43,500 large pitches (for football, rugby, hockey, etc.) and 40,800 tennis courts. France boasts 14 stadiums with more than 30,000 seats, while the 81,000+ capacity Stade de France is among the ten largest in Europe. The Stade Vélodrome (67,354 seats) and the Groupama stadium in Lyon (59,186) are the second and third largest in France. Opened to the public in October 2017, the 40,000 capacity U Arena in the Parisian suburb of Nanterre is Europe’s largest, most modern and versatile indoor arena. In 2024 it will host the gymnastics events for the Paris Olympic Games. The biggest international players of the sports industry are investing in France to develop their business internationally as well as expand their presence in the country. Since India has one of the world’s largest and youngest demographic, the current government has chosen sports as a strong driver of its economic development. India has thus opted for the creation of a holistic ecosystem for sports that would be transparent, robust and world-class. India’s performance in the 2018 Asian Games was praiseworthy. France can thus be a strong partner for the development of sports in India. This Symposium at the Embassy of France is an ideal platform for French companies to share their expertise in sports infrastructure, equipment technology, management, training, and the development of talent and sports business with their counterparts in India. I wish the France-India Sports Business Symposium great success. Sophie CLAVLIER Directrice de zone Inde et Asie du Sud Business of Sports – Rumble Under Our Feet | 7
Message The India Story is a promising one, not just with the advantage of its demographic dividend - with over 65% population under 35 years of age, but being the second biggest market for smartphones in the world with 221 million owners, and therefore the respective Over The Top (OTT) consumers, gives us an undeniable headway over many other competing economies. Club that with a base of fervent aspirations, we’re not only looking at youth dividend driving the near, mid and long term course of India, but also influencing the ensuing trends that may set the tone for various brands in the global market. India’s population is projected to rise to 1.5 billion, by 2030, with about 600 million youth under the age of 25 years. This can prove to be a big competitive advantage for the country, provided sports is used as a tool of empowerment towards achieving a healthy, educated and skilled young India. Sports can be the lever to prepare the youth for newer challenges. India holds no more than a drop, less than USD 3 Billion (approx), market share in the USD 650-700 Billion Global Sports industry. And in all fairness, we have substantial ground to cover when compared with Global sports giants like The United States of America, China, Australia or United Kingdom, with respect to our Olympic prowess and performances. However, our prime positioning on the youth index gives us a unique advantage that, enviably for the world, is knocking on the doors of sports excellence. 2018 has been a watershed year for our athletes, with a rank 3 finish at the Common Wealth Games, followed by a best ever Asian Games performance winning 69 medals, the most promising show was at the Youth Olympics with an unprecedented 13 medals. A majority of these athletes belong to non-metropolitans, a vindication of an aspiring and fast developing sports culture, reflecting the emergence of a strong sports infrastructure at all tiers as well as our growing bench strength. All very healthy signs to actualize India’s much anticipated potential for business of sports. The industry has many set pieces, which continues to receive a much needed push at a Central policy level under the strong leadership of the Hon’ble Minister of Sport and Youth Affairs, Shri Rajyavardhan Singh Rathore, Sports institutions, Niti Aayog, the Ministry of Health & Family Welfare and a corresponding growing economy. Increasing per capita income and the resultant increase in disposable incomes means that a largely young population is spending much more on entertainment, leisure, and wellness. Therein lies the potential for infrastructure, manufacturing, entertainment (including leagues and digital content) and the wellness (and fitness) industries. Yes, there is an imperative need to give an industry status to the sector, and with that to engage all State Governments by creating a competitive performance index to gauge job creation in sectors like sports infrastructure and manufacturing industries, to create hubs (and Special Economic Zones) of sports excellence and varied disciplines depending on the respective topographical and demographic advantages of the States against national parameters of job creation, talent scouting and management, infrastructure establishments and wellness quotients. Business of Sports – Rumble Under Our Feet | 9
There are several larger aspects related to the management of sports in India that need addressing in a multi- pronged manner. Bringing in management proficiency at grass root levels to nurture talent, the sector needs holistic, comprehensive policies, with buy in at district administration level. Here, a collaborative community approach, through a social equity model, accompanied by appropriate incentives, can help encourage sports talent. Sports excellence has to be a collective dream of the nation, and not a reactive business opportunity. In this report, we have reached out to industry specialists, and proven business minds, to evaluate the pulse of their respective sectors, gauge the pitfalls, highlight the underlying opportunities and seek recommendations on a strategy cohesive to the set-pieces within the sports industry. I am confident that the contents of the knowledge report will provide important insights to policy makers in achieving the transformational vision necessary for growth and development of the sports sector and actualize our Olympic dream as a systemic outcome of an excelling ecosystem. Mr. Karan Ahluwalia Senior President & Country Head, Media & Entertainment, Fine Arts, Luxury and Sports Banking Group, YES BANK 10 | Business of Sports – Rumble Under Our Feet
Table of Contents Introduction ........................................................................................................................................... 01 Policy....................................................................................................................................................... 07 • Tahsin Zahid | Sports, Physical Education, Fitness and Leisure Skills Council ............................... 07 The Big Bet: Skilling India’s Youth Dividend • Siddhartha Upadhyay | STAIRS....................................................................................................... 11 Unifying India’s Diverse Demographic Dividend: Broadbase to Broad-gauge Talent Outreach • Deepender Singh Hooda | Haryana Wrestling Federation of India.................................................. 13 Strategy and Plans for Institutionalizing a Sports Ecosystem • Mayank Pande | GoPlaySport.......................................................................................................... 15 How Technology has started to Impact and Transform Sports Markets and Investments...................................................................................................................... 18 • Rajeev Kalambi | FidelisWorld ....................................................................................................... 18 Market Strategy: Investing in Sports, Media & Entertainment • Karan Mohla | Chiratae Ventures..................................................................................................... 20 Market Strategy: Shaping up a Fit ‘Mind-Body’ India • Ronnie Screwvala | U SPORTS ...................................................................................................... 22 Gaming & eSports – Redefining New Media Investment Strategy Infrastructure.......................................................................................................................................... 25 • Mustafa Ghouse | JSW Sports....................................................................................................... 25 Filling in the Void – Where Talent meets Training • Udit Sheth | TransStadia ................................................................................................................. 27 Elephant in the Room – Walking the PPP Talk • Anil Kumar | Great Sports Infra....................................................................................................... 29 The God of Small Things – Digging into Districts #PlayingArenas Manufacturing......................................................................................................................................... 37 • Shiv Prakash Singh | Shiv-Naresh .................................................................................................. 37 Stitching the Great India Dream: A Ground-Up story • Rajesh Rai | Jerai Fitness ............................................................................................................... 41 What it takes to Sustain and Scale, The Growth Multiplier Marketing & Packaging.......................................................................................................................... 43 • Vinit Karnik | GroupM...................................................................................................................... 43 “Show me the money” – Ground report: The Grand India League • Charu Sharma | Mashal Sports....................................................................................................... 46 Demystifying the Matrix – How Kabaddi reached Households and What Next? Business of Sports – Rumble Under Our Feet | 11
Gaming and eSports.............................................................................................................................. 48 • Vamsi Krishna | NVIDIA.................................................................................................................. 48 E-Giant, Knocking on the Door! • Lokesh Suji | Esports Federation of India ....................................................................................... 50 Global context, India and the inherent opportunity • Siddharth Batra | Satram Dass B & Co........................................................................................... 53 Precinct of Indian Law on Online Games The French Connection.......................................................................................................................... 54 About, Strengths and India Strategy.................................................................................................... 54 • Fabien Dilem | PARIS SAINT-GERMAIN.......................................................................................... 54 • Pierre Debleme | W ARENA .......................................................................................................... 55 • Florent Marty | SOLIVE................................................................................................................... 56 • Christophe Carniel | VOGO............................................................................................................. 57 • Jean-Sebastien Gosuin | SEATERS................................................................................................. 58 • Cédric Messina | MY COACH SPORT............................................................................................. 59 • Guillaume Deguerry | METALU-PLAST........................................................................................... 60 • Eric Leport | ALCOR....................................................................................................................... 63 • Bertrand Pignole | SODIKART ........................................................................................................ 64 • Olivier Esteves | ABEO................................................................................................................... 66 About Business France.......................................................................................................................... 68 About YES BANK.................................................................................................................................... 69 12 | Business of Sports – Rumble Under Our Feet
Introduction “Spirit, strength, skill and stamina – are key elements in the field of sports as the core foundation of the nation. If the youth of a country possess these qualities, that country will progress not only in areas such as the economy, science and technology but also bring laurels home in the field of sports.” ~ Hon’ble Prime Minister of India, Shri Narendra Modi The importance of sports in harnessing the power Clearly, India’s competitive edge is visible in its of youth towards nation building and economic economic performance, but a far cry on per capita, development has been evident ever since the 1896 health or sports excellence axis. The Olympics may Olympics, and has been firmly established during well be an important, if not the ultimate, parameter subsequent international sporting events around the to judge a country’s standing on the global sports world. excellence index. But critically, it is a strong reflection of the country’s sports culture, outlook towards India holds no more than a drop, less than ~USD fitness as part of its DNA and the presence or 3 Billion market share in the USD 650-700 Billion absence of an underlying sports fabric – that covers Global Sports industry1. A stark contrast for one relevance of sports in education, infrastructure, of the world’s fastest growing economies, high tangible manufacturing supply chain and the population and one of the most youthful nations in cumulative interest of a national and institutional the world, with over 65% population under 35 years push for sports driven content (covering all forms of age2. Evidently, India is a high potential market for of media). The sheer gap with other developed global businesses with an unenviable distinction of economies gives relevant perspective on the need to winning the lowest number of Olympic medals per proactively empower the system to enable a robust capita. That however, is not the only parameter of economy, given the human capital dividend offers a success or the underlying opportunity. prospective potential in more ways than one. India’s population is projected to rise to 1.5 billion Today, sports is being adopted as a tool for by 2030, with about 600 million youth under the age development by countries world over, as it has of 25 years. This can prove to be a big competitive been proven that sports helps in improving human advantage for India, provided sports is used as a resources, economy and social fabric of a country. tool of empowerment towards achieving a healthy, educated and skilled young India. Sports can be the lever used to prepare India’s youth for newer INDIA RANK (in year challenges. 2018) Global Competitive Index, 58 India has been ranked as the 58th most competitive World Economic Forum economy on the World Economic Forum’s Global Human Development 130 Competitive Index for 20183, however our economic Index, United Nations standing may not be a fair reflection, from a holistic perspective, as the country sits at rank 130 on India’s medals tally at 51 the Human Development Index on a scale of 180 Summer Olympics (last 10 countries4. editions) 1 https://assets.kpmg.com/content/dam/kpmg/in/pdf/2016/09/the-business-of-sports. 2 https://yas.nic.in/youth-affairs/message-minister-0 3 http://reports.weforum.org/global-competitiveness-report-2018/summary-of-key-findings/ 4 http://www.in.undp.org/content/india/en/home/sustainable-development/successstories/india-ranks-130-on-2018- human-development-index.html Business of Sports – Rumble Under Our Feet | 1
The United Nations (UN) recognised the potential It is therefore imperative that sports be approached of sport ‘as a means to promote education, health, holistically (through the multiple segments under it), development and peace’ (UN Resolution 58/5). and given the requisite importance and relevance to Agenda 2030 also emphasises the impact sports be used as a tool of transformation and capitalization can make in the direction of achieving sustainable - not just an avenue to bring laurels to the county development goals. in marquee global sports properties, but effectively, also as an important driver to add skilled labour to India can realize benefits such as increased GDP, India’s ever maturing workforce, promote India’s reduced unemployment level, improved health for GDP, and critically lead to a fitter, healthier and a citizens and enhanced literacy levels. mindful India. Following is a segment wise breakup for better understanding on the size, scale, scope and opportunity in the industry. • Ministry of Youth Affairs and Sports • Sports Authority of India Policy - Sports • National Sports Federations Governance Three key stakeholders in policy making responsible for: introducing transformational changes, on-ground execution, talent scouting, training, efficient management of processes and infrastructure • One of the primary pillars of the industry to achieve sports excellence and create a robust grassroots program. • Smart - Districts to Cities – promote Centre-State mandate on sports infrastructure in Infrastructure the DNA and create a deliverable list • Aim should be to build state-of-the-art multiple facility stadiums and target setting up smaller playing arenas and introduce functional open-gyms • Drive Sustainable (solar rooftops and water management facilities) and community driven solutions for Sports Infrastructure for higher community engagement • Make Sports Infra self-sustainable with revenue intensive (Sportainment) facility usage • Equipment Manufacturers, Retailers, Consumers and Private Sports Academies, all are playing an important role in driving this sector forward Manufacturing • Total sports goods exports for 2017-18 stood at USD 232.80 Mn, as compared to USD – Sports 224.83 Mn during the previous year Goods and Equipment • The industry provides employment to over 500,000 people • Global retail sports goods industry is expected to grow at 3.4% from 2015-20 • Ownership of sports properties/ expansion through regional broadcast penetration • International sports broadcasters investing in India as leading destination for business Broadcast, expansion. Over The Top audience in India is estimated to be around 225 Mn in FY18 Leagues and and expected to reach 550 Mn in 5 years Tournaments Broadcasters, Franchises, National Sports Federations, Sponsors and Spectators, everyone wants a bigger share of the pie 2 | Business of Sports – Rumble Under Our Feet
• Gyms, training, marathons, outdoor sports and competitions, healthy food form sub- segments Sports, • Valued at USD 35 Bn in 2016, SFW business has been expected to grow at 17% CAGR Fitness & to reach USD 90 Bn by 2022 Wellness (SFW) • Fitness and Wellness attribute approximately 2.5 times the opportunity of Sports activities by itself • Schools, colleges, universities, institutions are the harbinger of talent and breeding Education grounds of future talent and Culture • Global Sports Tourism industry is estimated to reach USD 5.72 Tn by 2021 (Toursim) • Sports Tourism in India is an untapped industry. With its topographic diversity, Government needs to introduce best global practices and policies to capitalize this massive revenue and job creator • VR (Virtual Reality) and GFX are the future in animation and gaming ITES: Gaming, • Wearables market size USD 26 Mn in India and growing fast eSports, Startups • In 2018, the global video games industry was pegged at USD 137.5 Bn. India’s digital gaming industry is pegged at USD 890 Mn Given the size and scale of the sector, it is more than The Ministry of Youth Affairs and Sports (MYAS) has evident that the business of Sports, as an opportunity seen transformational steps been taken since Col. for a relatively young nation, means much more than Rajyavardhan Singh Rathore took control, whether medals and podium finishes, it implies quite naturally this meant greater allocation of funds to the sports a means of integrating India’s impending need for budget, implementation of a concerted grassroots employment with myriad opportunities in the value development program in ‘Khelo India’ or something chain. as diverse as reaching out to a large audience with the #HumFitTohIndiaFit campaign. Importance of From a policy perspective, to ensure effectiveness of awareness cannot be undermined in a culturally programmes at the grassroots level, it is imperative diverse country like India and the subsequent to design inclusive plans that are aligned to the capitalization at a policy and programme level can help Government’s development agenda, build strong achieve goals seemingly unfathomable previously. To programmes, delivery platforms with continuous achieve this, there must be a synergetic relationship feedback system for improvement. Grassroots between the Ministry of Youth Affairs and Sports, sports development programmes have a lot of Sports institutions, Niti Aayog and the Ministry of potential to bring sweeping changes on the state of Health & Family Welfare. sports in India. These programs hold great promise to catalyze a One of the major fillips in the direction has been the new wave of sports revolution for India that will bring institutionalisation, for the very first time in the history Infrastructure, IT & Innovations, Talent Management of India, a sports minister who has been a top-class and Sports Education, all under one umbrella, with athlete himself and understands the system like any an equivocal ‘RURBAN’ (rural and urban talent) other athlete, Col. Rajyavardhan Singh Rathore. multiplier. “There is only one VIP, and that is a A look into the annual budgetary allocations, over the sportsperson.” last 3 years reflect the growing cognisance of the Government of India towards supporting, nurturing ~Hon’ble Minister of Sports, and eventually actualising the real potential of sports Col. Rajyavardhan Singh Rathore and its influence on a large consumer base in India. Business of Sports – Rumble Under Our Feet | 3
SPORTS BUDGET ALLOCATION BETWEEN 2016 – 2018 (In INR Cr) Sports Budget 2016 Difference 2017 Difference 2018 Difference (2015-16) (2016-17) (2017-18) Ministry of Sports 1592 + 50.87 1943 + 351 2196 + 258 Sports Authority of India 381.30 + 11.91 481 + 99.7 429 - 52 Scheme for Benefit for North 144.98 +6 148 + 3.02 173 + 25 East – through sports Financial Assistance to 314.50 + 129.5 302 -12.5 342 + 40 Sporting Institutions (Federations / Associations) Khelo India 140 + 210 350 + 210 520 + 170 A couple of trends emerge from a quick look at the competition structure and sports economy. annual sports budget allocation over the past 4 years. We can see that the Ministry of Sports has quite The sports governance structure in India is well- literally taken the bull by the horn with increased defined. Broadly, it comprises of the Government budgetary allocation to ‘Khelo India’ program and and autonomous bodies established in compliance similar initiatives, while keeping a firm grip on with the Olympic charter. fund disbursement with respect to allocations that entail second-party administration and ground MYAS under the Government of India, is responsible management. for administering the Department of Sports. The Sports Authority of India (SAI) is the field arm of It is clear that ‘Khelo India’ has been a much sought MYAS in the promotion of sports in India through after project of the Sports Ministry and executed with the implementation of various schemes such as equal vigour. The programme has been introduced to the National Sports Talent Contest Scheme (NSTC), build the ecosystem ground up through engagaments SAI Training Centres Scheme (STC) and Centres of at schools and grass-root level by building a strong Excellence (COX) scheme. framework for all sports played in our country. There are 12 identified areas defined under the scheme, The strategy towards excellence and success which will impact the entire sports ecosystem, therefore is in the close collaborative approach including sports infrastructure, talent identification, of the MYAS with SAI and the respective sports coaching for excellence, community sports, Federations of India. 4 | Business of Sports – Rumble Under Our Feet
MINISTRY OF YOUTH AFFAIRS AND SPORTS (MYAS) Total Budget: INR 2196.35 Cr | Sports budget: INR 1,425.50 Cr SNAPSHOT OF BUDGETARY BREAKUP Sports Authority of India (SAI) Khelo India (KI) Key Schemes • Budget: INR 429.56 Cr • Budget: INR 520.9 Cr i) Assistance to Promotion of Sports Excellence received • Main cost heads under SAI: • Constitutes 23.67% of the INR 347 Cr total budget i) Stadium infrastructure – ii) National Service Scheme has • KI is a subset of National includes buildings and received an allocation of Program for Development sports equipment INR 160 Cr of Sports which has been allocated INR 1262.79 Cr iii) Nehru Yuva Kendra Sangathan ii) Player / Coach fee and training support staff has received INR 255 Cr • #FitIndia movement being pushed by the GoI, iv) Benefit of North Eastern Area iii) Hosting training camps and including PMO Scheme: fund allocation at INR development 173.16 Cr • Multiple programs • SAI owns and runs 5 key under KI: Talent search v) National Youth Corps granted stadiums in India – some and Development, INR 80 Cr have reached break-even and Playfield Development, generating revenue vi) Incentives to sportspersons Utilisation and Creation budgeted at INR 23 Cr • Names of stadia: Dr. Karni / Up-gradation of Sports Singh Shooting Range, Dr. Infrastructure, vii) HRD in Sports allocated SPM Swimming Pool Complex, INR 5 Cr Jawahar Lal Nehru Stadium, viii) National Sports Development Indira Gandhi Stadium Complex budget of INR 2 Cr – NSDF & Major Dhyan Chand National promotes The Olympics Podium Stadium Scheme which also raises its funds from CSR Having said that, budget allocations and funds in important reason to look at this critical bridge sports development are still at a very small fraction between sports and other sectors and build ‘policy as compared to what is needed to make a meaningful driven mechanisms’ to cross leverage for a more impact. Sports infrastructure in states, federations holistic development of all related sectors. (at a central level), manufacturing facilities, to name a few, are all seeking greater fund allocation for Some of the above stated transformative inclusions taking the agenda forward. have however given reasons of joy to India with a calendar of successful performances coming in at With the fastest growing economy and mega the international level, a definite change from an infrastructure development across various core abysmal 2 medal show at the last Summer Olympics sectors, it is only obvious that there could be in 2016. constraints on funds for sports. This is another Medal performances in 2018 Tournament Medals (Gold - Silver - Bronze) Rank Common Wealth Games 66 (26 - 20 - 20) 3 ASIAN GAMES 69 (15 - 24 - 30) 8 Youth Olympics 13 (3 - 9 - 1) 13 Business of Sports – Rumble Under Our Feet | 5
After an astounding performance at the Common “Every life, every being is a source of Wealth Games 2018 with a combined 66 medals, and its third best showing in the history of the Games, inspiration. Every young sportsperson’s India returned home with a best ever rank 8 finish passion and dedication is the hallmark with the Asian Games 2018. India equaled 15-gold of New India.” tally of the inaugural games and an unprecedented 24 silver medals, a sign of India’s growing bench ~ Hon’ble Prime Minister of India strength. Shri Narendra Modi In pursuit of excellence, India never had it so good in the continental showpiece that is considered only and training apparatus and the complimenting second to the Olympic Games. infrastructure being employed in the country. There were three welcome subtexts in India’s Twenty-two-year-old Amit Pangal’s win over Olympic performance in Jakarta. The biggest success is the champion Hasanboy Dusmatov (Uzbekistan) in the triumph of youth. Of the 572-member contingent light fly weight category (49 kg) in the Asian Games at least 200 were aged 23 years or less. Half the is a vindication of the developing sports culture and number of medals won by India was by youngsters, emergence of sports infrastructure. He comes from several of them relatively unknown. And in many a family of small-time farmers who took up boxing ways, the second most defining information is that in Mayna village in Rohtak because local coach Anil the majority of talent does not come from tier 1 cities. Dhankar had set up a boxing academy there. The third, and a welcoming fact, was the emergence of a strong talent pool of women athletes. For a country that is frequently dismissed as the most underperforming sports nation with a population of And to top the sign of a talent uprising followed 1.2 billion people (Census 2011) with limited access India’s best ever show at the Youth Olympic Games to sports facilities (hardly reaching 8-9% of the in Buenos Aires, Argentina, with 13 medals from 8 population, and that too predominantly in the urban (out of 13) disciplines. In 2010, eight medals came in areas) for its talent pool, our recent showings at 5 sports; and two in 2014 from as many sports. These the CWG, Asian Games and the Youth Olympics is are promising signs of not just an increased talent a propitious sign of a building bench strength and pool, but the diversity of medal winning disciplines a well-oiled system producing an unprecedented showcase India’s inclusive and far reaching scouting supply chain. Sports medals are an outcome of the health parameters of the sports business ecosystem. The global sports industry - at 1% of global GDP - includes sports infrastructure, sports events, sports hospitality, talent and training, manufacturing and retail of sports goods, education, ITES and the innumerable affiliate industries that accrue profits in association. To add more and relevant perspective, lets look into the minds of key stakeholders from India’s sporting fraternity and their views on Policy towards transforming and capitalizing India’s sports sector. 6 | Business of Sports – Rumble Under Our Feet
Policy The Big Bet: Skilling India’s Youth Dividend Tahsin Zahid COO Sports, Physical Education, Fitness and Leisure Skills Council (SPEFL-SC) S “The classification would enable the ports always brings a sense of national pride that is incomparable to any other form of entertainment. Business of Sports has intra and inter industry provision of changed faces very rapidly in the recent past. The support and incentives for the domain.” introduction of entertainment and role of corporates has been increasing and evolving. Over the years, sport has evolved as a noticeable sector for all include but not be limited to economies, presenting myriad career as well as • Infrastructure construction growth business opportunities. The scope of this sector varies globally. It includes several segments: • The boosting of manufacture of sporting goods sports infrastructure, sports events, training, goods • More organized and systematic distribution of manufacturing and retail. licensed products Moreover, the business of sports is not just limited • Professional organization of live sports events to the mentioned avenues; it has far-reaching of any physical human activity that requires implications on the global economy due to its close exertion and which by its very nature is association with other sectors, including education, competitive. real estate and tourism. Further, sports contribute significantly towards improving the overall health The Sports Physical Education, Leisure, Fitness Skill and well-being of a country Council (SPEFL-SC) is a unique initiative to play a proactive role and bridge the gap by creating a vibrant Historically in the global context, Sports is an industry eco-system for quality training and skill development that has rapidly grown and evolved, positively for the Sports sector. impacting the overall GDP growth in numerous countries. There are enormous opportunities for SPEFL-SC is a Not-for-Profit Organization, registered further industry participation. However, there are under the Societies Registration Act, 1860. The challenges in attracting investment into sport. Council has been promoted by Federation of Indian To ensure positive participation by India’s private Chambers of Commerce and Industry (FICCI) and sector beyond mere Corporate Social Responsibility National Skill Development Corporation (NSDC). The (CSR) related investments, the time is ripe for supporting organizations include leading industry sports in India to be recognized as an industry. This and industry associations representing both public would in turn assist in transparency, sophistication, and private sector. professionalism, accountability, regulation, and growth. Purpose and Mandate By giving sport industry status, there would be SPEFL-SC is mandated to impact 2.1 million people numerous benefits that other industries and the over ten years. The purpose of establishing SPEFL- government would receive. The classification would SC is to ensure that the Sports Industry can grow enable the intra and inter industry provision of with skilled manpower, increase productivity and support and incentives for the domain. This would profitability which will certainly bring paradigm Business of Sports – Rumble Under Our Feet | 7
Policy shift in Sports landscape of India. Vocationalization • Sports Grassroots of Sports, Physical Education, Fitness and Leisure • Sports Facilities is the way forward for activating attitudinal change towards sports and help India get its due recognition • Sports Broadcasting and Media in sports sector. • Sports Event Management SPEFL-SC is expected to create a dynamic LMIS to keep track of the market skill gaps, frame Mandate of SPEFL-SC Occupational Standards, facilitate development of • Identification of skill development needs practical and high-quality training content, ensure including preparing a catalogue of types of adequate availability of faculty through Train the skills, range and depth of skills to facilitate Trainer initiatives, build accreditation and certification individuals to choose from them mechanisms and encourage capacity building • Development of a sector skill development through private sector participation. Sports sector plan and maintain skill inventory considered as a strategic sector and development of domestic capabilities is essential from a national • Determining skills / competency standards pride and overall development perspective. Sports and qualifications sector has multiplier effect and has bearing on the • Standardization of affiliation and accreditation growth of other industries. process According to KPMG analysis 2016 The global • Participation in affiliation, accreditation, sports industry, at 1% of global GDP, is estimated examination and certification to be worth around USD 600–700 billion. This • Plan and execute Training of Trainers and includes sports infrastructure, sports events, sports Assessors. hospitality, training, and manufacturing and retail of sports goods. While sports in India has usually • Promotion of academies of excellence been a government-led initiative, the private sector • Set up an effect LMIS and assist in planning has historically participated through corporate social and delivery of training responsibility channels, PPP in sports infrastructure development and for profit sports academies. Now, • Benchmark Indian Sports and Physical Fitness sports leagues have emerged as a primary vehicle education with international standards for the private sector. While on quantitative front, different sub-sectors and The Indian sports sector is experiencing a sea of companies would have different requirements; on changes with all-round developments initiated by the qualitative front, the key expectations from a job role government, the private sector as well as non- profit across sectors remain similar. organisations. The government is introducing game- changing schemes such as ‘Khelo India’ to address SPEFL-SC has already identified 17 Job roles as of issues regarding infrastructure, talent scouting and now to start work on including: training facilitation. Private sector and non-profit entities are also increasingly contributing to the • Sports Masseur / Sports Massage Therapist sector by organising leagues and tournaments, • Ayurvedic Sports Massage funding talented sportspersons and getting involved in grassroots development • Groundskeeper / Sports Turf Maintenance • Self-DéfenseTrainer Skills development in sports is required across following sub-sectors to begin with: • Sports Coach • Sports Science and Technology • Fitness Trainer / Gym Trainer • Sports Management • Physical Activity Trainer at school level • Sports Coaching • Pool Operator / Cleaner • Sports Medicine • Sports Nutritionist • Sports Manufacturing and Retailing • 10m Air Pistol Shooting Instructor • Sports Development • Lifeguard Pool & Beach 8 | Business of Sports – Rumble Under Our Feet
Policy • High Altitude Porter Mountaineering By giving sport industry status, there would be numerous benefits that other industries and the • Kayak and Canoe Guide government would receive. The classification would • Porter Mountaineering enable the intra and inter industry provision of support and incentives for the domain. This would • Rafting Guide include but not be limited to • Camp Manager • Infrastructure construction growth • Caddy Golf • The boosting of manufacture of sporting goods Conclusion • More organized and systematic distribution of India has a long journey ahead on its path to develop licensed products a strong sports culture. However, the ongoing developments indicate a promising future. A rising • Professional organization of live sports events number of sports start-ups, significant growth in of any physical human activity that requires gym memberships and the increasing number of exertion and which by its very nature is marathoners in the country, indicate a clear trend competitive. of growing consciousness about health and fitness amongst the Indian youth. The Sports Physical Education, Leisure, Fitness Skill Council (SPEFL-SC) is a unique initiative to play a With increasing demand for sports infrastructure proactive role and bridge the gap by creating a vibrant management, the requirement of skilled workforce eco-system for quality training and skill development cannot be negated. Sports always brings a sense of for the Sports sector. national pride that is incomparable to any other form of entertainment. Business of Sports has changed SPEFL-SC is a Not-for-Profit Organization, registered faces very rapidly in the recent past. The introduction under the Societies Registration Act, 1860. The of entertainment and role of corporates has been Council has been promoted by Federation of Indian increasing and evolving. Over the years, sport has Chambers of Commerce and Industry (FICCI) and evolved as a noticeable sector for all economies, National Skill Development Corporation (NSDC). The presenting myriad career as well as business supporting organizations include leading industry opportunities. The scope of this sector varies globally. and industry associations representing both public It includes several segments: sports infrastructure, and private sector. sports events, training, goods manufacturing and retail. Purpose and Mandate SPEFL-SC is mandated to impact 2.1 million people Moreover, the business of sports is not just limited over ten years. The purpose of establishing SPEFL- to the mentioned avenues; it has far-reaching SC is to ensure that the Sports Industry can grow implications on the global economy due to its close with skilled manpower, increase productivity and association with other sectors, including education, profitability which will certainly bring paradigm real estate and tourism. Further, sports contribute shift in Sports landscape of India. Vocationalization significantly towards improving the overall health of Sports, Physical Education, Fitness and Leisure and well-being of a country is the way forward for activating attitudinal change Historically in the global context, Sports is an industry towards sports and help India get its due recognition that has rapidly grown and evolved, positively in sports sector. impacting the overall GDP growth in numerous SPEFL-SC is expected to create a dynamic LMIS countries. There are enormous opportunities for to keep track of the market skill gaps, frame further industry participation. However, there are Occupational Standards, facilitate development of challenges in attracting investment into sport. practical and high-quality training content, ensure To ensure positive participation by India’s private adequate availability of faculty through Train the sector beyond mere Corporate Social Responsibility Trainer initiatives, build accreditation and certification (CSR) related investments, the time is ripe for mechanisms and encourage capacity building sports in India to be recognized as an industry. This through private sector participation. Sports sector would in turn assist in transparency, sophistication, considered as a strategic sector and development professionalism, accountability, regulation, and of domestic capabilities is essential from a national growth. pride and overall development perspective. Sports Business of Sports – Rumble Under Our Feet | 9
Policy sector has multiplier effect and has bearing on the • Participation in affiliation, accreditation, growth of other industries. examination and certification • Plan and execute Training of Trainers and According to KPMG analysis 2016 The global Assessors. sports industry, at 1% of global GDP, is estimated • Promotion of academies of excellence to be worth around USD 600–700 billion. This includes sports infrastructure, sports events, sports • Set up an effect LMIS and assist in planning hospitality, training, and manufacturing and retail and delivery of training of sports goods. While sports in India has usually • Benchmark Indian Sports and Physical Fitness been a government-led initiative, the private sector education with international standards has historically participated through corporate social responsibility channels, PPP in sports infrastructure While on quantitative front, different sub-sectors and development and for profit sports academies. Now, companies would have different requirements; on sports leagues have emerged as a primary vehicle qualitative front, the key expectations from a job role for the private sector. across sectors remain similar. The Indian sports sector is experiencing a sea of SPEFL-SC has already identified 17 Job roles as of changes with all-round developments initiated by the now to start work on including: government, the private sector as well as non- profit • Sports Masseur / Sports Massage Therapist organisations. The government is introducing game- changing schemes such as ‘Khelo India’ to address • Ayurvedic Sports Massage issues regarding infrastructure, talent scouting and • Groundskeeper / Sports Turf Maintenance training facilitation. Private sector and non-profit entities are also increasingly contributing to the • Self-DéfenseTrainer sector by organising leagues and tournaments, • Sports Coach funding talented sportspersons and getting involved in grassroots development • Fitness Trainer / Gym Trainer • Physical Activity Trainer at school level Skills development in sports is required across following sub-sectors to begin with: • Pool Operator / Cleaner • Sports Science and Technology • Sports Nutritionist • Sports Management • 10m Air Pistol Shooting Instructor • Sports Coaching • Lifeguard Pool & Beach • Sports Medicine • High Altitude Porter Mountaineering • Sports Manufacturing and Retailing • Kayak and Canoe Guide • Sports Development • Porter Mountaineering • Sports Grassroots • Rafting Guide • Sports Facilities • Sports Broadcasting and Media • Camp Manager • Sports Event Management • Caddy Golf Mandate of SPEFL-SC Conclusion • Identification of skill development needs India has a long journey ahead on its path to develop including preparing a catalogue of types of a strong sports culture. However, the ongoing skills, range and depth of skills to facilitate developments indicate a promising future. A rising individuals to choose from them number of sports start-ups, significant growth in • Development of a sector skill development gym memberships and the increasing number of plan and maintain skill inventory marathoners in the country, indicate a clear trend of growing consciousness about health and fitness • Determining skills / competency standards amongst the Indian youth. and qualifications • Standardization of affiliation and accreditation With increasing demand for sports infrastructure process management, the requirement of skilled workforce cannot be negated. 10 | Business of Sports – Rumble Under Our Feet
Policy Unifying India’s Diverse Demographic Dividend: Broadbase to Broad-Gauge talent outreach Siddhartha Upadhyay Founder and General Secretary, STAIRS Member of the SAI Advisory Committee and Co-chair, FICCI Sports the panacea! “My experience of using sports W hen a nation decides, there’s a political will; as an instrument of social change things begin to change. Things change so has reinforced my faith that it’s the fast that within a few years the old order is changed forever. most important tool to achieve social development goals set by the United In this world capable of changing fast, human capital is the key. India, an ancient country of young people, Nations.” more than half of the 1.25 billion people are below the age of 25 and more than two-thirds below the age of 35--is on the verge of human capital revolution. There’s a need for a concerted and decisive action at the grassroots, as sport can be used as a India’s population is nearly twice that of Europe. multipronged strategy to deal with a host of pressing Every fifth man on the planet is Indian. India must issues like health, education, gender parity and harness its substantial demographic potential via empowerment of weaker sections of the society. sports. Think of it; sports is integral to a good and Our endeavour is a validation that many Sustainable healthy childhood. Moreover, sports is the best way Development Goals (SDG) of the United Nations to engage immense energy embodied by children can be met by encouraging sports. Sports ensures and youth constructively and hone their talent, in healthy lives, promotes societal well being, quality the process, prepare them to be a better citizen. education and gender equality. A sporting society is a healthy society, even the communists would agree. The emphasis, therefore, STAIRS has shown that engaging with youth and should be on interventions at the grassroots if India’s children in India’s hinterland and urban slums via huge demographic potential has to be harnessed. sports is a training ground for a whole generation, a medium of social change where skill, agility, ability, That’s precisely what we at Society forTransformation, the strength of mind and body, grit and determination Inclusion and Recognition through Sports (STAIRS) decide who the winner is. Considerations of caste, do. For the last nineteen years, at the grassroots in creed, race and gender have no role to play. more than five provinces of India, we run successful programmes specially designed for the deprived Sports also bridges the divide between the rich sections of the society with particular emphasis countries with poor, urban with the rural way of life, on girls and differently-abled. We have developed reduces inequality within and among nations, make interventions for people with drug abuse history and cities and human settlements inclusive, safe, resilient used sports as an effective tool to reintegrate them and sustainable, and in the process, promotes with the mainstream. My experience of using sports peaceful and inclusive societies for sustainable as an instrument of social change has reinforced development. Sports also provides access to justice my faith that it’s the most important tool to achieve for all and build effective, accountable and inclusive social development goals set by the United Nations. institutions at all levels. Our efforts have made a Business of Sports – Rumble Under Our Feet | 11
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