Indian sports industry is experiencing an upward movement both in terms of revenues and viewership. Revenue in the Sports & Outdoor segment amounts to US$856m in 2020.Revenue is anticipated to show an annual growth rate (CAGR 2020-2024) of 12.0%, resulting in a market volume of US$1,348m by the year 2024.User penetration is currently 14.5% in 2020 and is anticipated to grow to 24.3% by the year 2024.The average revenue per user (ARPU) currently comes to US$4.28.With numerous other sports like football, kabbadi, hockey, etc. apart from cricket gaining widespread popularity in the recent times, sportsman are capitalizing on their opportunity to showcase their individual talent for different games. Along with this, the industry is receiving a large share of its revenues through sponsorship from organizations that use sports as a platform to gain public attention. Digital media is playing a key role in how the industry is shaping up today as a massive increment is seen in the number of people who consume sports online through apps like Cricbuzz, Hotstar, sonyliv,Espncrickinfo,The Football App etc.
New sports formats and various sports other than cricket are receiving colossal sum of media investments and ground sponsorships which are subsequently driving the sports revenues. Providing sports analytics and e-tailing sports apparels has developed as a unique marketplace and there is no looking back as the public interest in sports continues to rise. Sports tourism and sports infrastructure are few other ancillary businesses stemming out from the key industry.
Since the industry is by far dependent on human talent, the player, sports body, corporate, media houses and teams involved in it have a high risk ratio. The risks can be of reputation loss, financial risk, death, disability or injury to player, casualty, third party liability, and few others. Competent risk management is thus required to cover the stakeholders against these risks and some more, not to mention that insurance is a must in all circumstances.
