The year 2022 has been remarkable for the Indian Sports industry as the sponsorship sector witnessed a growth of a whopping 49% with spending crossing 14,200 crores. The information was revealed in the 10th edition of the Sporting Nation Report 2023, released by GroupM ESP on Tuesday.
A significant chunk of this sponsorship has naturally gone to cricket with the Indian cricket team playing almost the double number of matches in 2022 and in the entry of two new teams in the Indian Premier League (IPL).
In 2022, IPL saw the entry of Gujarat Titans and Lucknow Super Giants which pushed up the total number of teams to 10.
The amount of money spent on the team and franchise, as well as on-ground expenses, has gone up by ₹3,021 crore. This increase represents a growth of 105% from the previous year, resulting in a total sponsorship spend of ₹5,907 crore.
The report said that the reason behind the overall increase in expenditures was the increase in the number of IPL matches, the inclusion of two new IPL teams, the occurrence of events such as the ICC T20 World Cup, Asia Cup, FIFA World Cup, and the resumption of emerging sports events and tournaments such as PKL, marathons, Maharashtra Open, and the Commonwealth Games 2022.
Overall cricket accounted for 85% of all sports sponsorships, while the other 15% is with emerging sports like kabaddi, football, etc.
The report brings to attention significant factors indicating that brands are likely to change their approach toward spending on sporting events due to the increasing use of over-the-top (OTT) platforms. Additionally, the sports industry has been performing well in the economy, showing a cumulative annual growth rate (CAGR) of 14%.
In 2022, the sports celebrity endorsements also saw a jump of 20% and reached ₹749 crore. Virat Kohli, Sachin Tendulkar, MS Dhoni, Neeraj Chopra, and PV Sindhu are some of the top athletes in sports brand endorsement.
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