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FICCI-Libero Sports Knowledge Paper on Destination India: Unique Business Opportunities in Indian Football
March 2012 | Sports
Football, like any other sport or commercial activity requires financial support, whether in form of monetary investment or products / services that help the beneficiary reduce costs. Developing sports in a country is generally the responsibility of the government sector at both centre and state level but it also requires the backing and support, especially on the financial side, from the corporate sector at various levels.
There are numerous ways for the corporate sector comprising of private entities, public sector undertakings, multi-national corporations, etc. to get involved in the development of a sport in any country. In Indian sports, Cricket has enjoyed this luxury of private investment for the past 20 years. Other sports have now started attracting investment interests and one of the most promising sports out of the list is football.
Football is considered the fastest growing sport in the country at the moment and is beginning to generate significant interest and investment through various ways. Most of these ways can broadly be clubbed under ownership, franchisee, investment and sponsorship model.
Depending upon the investment budgets and objectives to be achieved, a corporate entity has various options of investing into Indian football, such as owning or sponsoring a club, a tournament, a one-off friendly match or even just a player. From setting up academies to starting up school leagues, from acquiring rights of national football properties to getting licenses for international club merchandise and hospitality.
The investment figures can differ drastically depending upon which investment option is chosen by the investor. Owning a top division club, on an average can be an annual investment of INR 8 crores (~USD 1.6 million) whereas setting up an academy can mean an approximate investment worth INR 4 crores (~USD 800,000) not including the cost of acquiring the land. Starting a school league or organizing a grassroots tournament in a city can cost an investor approximately INR 10 to 30 lakhs (~USD 20,000 to 60,000) a year but opening up a merchandise store or a hospitality outlet for an international football club after acquisition of rights can cost approximately INR 1 to 2 crores (~USD 200,000 to 400,000). Sponsorships, whether for a club or for a tournament, for a one-off match or just a player, all come at various levels depending upon the deliverables and costs negotiated by the stakeholders involved.
Over the past few years, many Indian corporates have showered their support for Indian football at national, club and grassroots level and moving forward, more of such support will be the key in raising the valuation of the sport in the
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