Today sport emerges as a billion dollar industry throughout the world. It employs millions of people either to participate or to witness sporting activities. A change in the pattern of consumption, production and management of sports has been observed in recent time due to the introduction of professionalism into the system. The objective of this article is to understand the structure of this industry and its status in India.
In a sports industry, there are three major sectors- the public sector, the non- profit sector and the private sector. The public sector comprises of the Government and Governmental organizations that are responsible in making sports policies, providing funds for nurturing talents, developing infrastructure, designing specialized programmes such as dope control etc. The non- profit sector consists of the international, national, regional and local sports bodies which are responsible for providing participation opportunities by organizing sports events.
This sector is also responsible in regulating and managing sports in a given territory or throughout the world. The private sector is the third sector which is engaged in sports and sports- related activities with an objective of making profit. Sports management companies, media providers, manufacturers of sporting goods, professional leagues, teams participating in the professional leagues are the prominent components of this sector. The growth of the sports industry in any country depends on the effective functioning and proper coordination of these three sectors.
According to an estimate of the Planning Commission of India, the country will be the home of approximately 510 million people of the age group of 15 to 35 years by the end of 2016. Considering the socio- economic contribution of sports, it can be argued that the Government should allocate sufficient fund for the overall development of sports in this country. A significant increase can be observed in the fund allocation for sports in the Eleventh Five Year Plan.
Rs. 46.36 billion has been allocated for sports in the Eleventh Five Year Plan, while it was Rs. 11.45 billion in the Tenth Five Year Plan. The Panchyat Yuva Krida Aur Khel Abhiyan (PYKKA) had been introduced to generate sports culture in the rural areas and Rs. 1,500 crore has been approved by the Planning Commission in the Eleventh Five Year Plan for the successful execution of this project. International mega events, like Commonwealth Games 2010, Hockey World Cup, Cricket World Cup, have been organized in India in recent past which provided a necessary impetus to the private sector to register a growth.
It is indeed an opportunity for the young professionals of this country to take the lead of this industry to ensure a rapid growth and to introduce a new structure of governance within the system. We may expect that the youth of India will help the sports industry to attain new heights.
The author is a sports enthusiast, currently working as a Lecturer of the Department of Sports Management of Indian Institute of Social Welfare and Business Management, Kolkata. He joined the sports industry as a Research Executive of Comperio Research, market research arm of IMG. All India Football Federation (AIFF), the apex body of football in India, was his next organization where he joined as the Event Coordinator of the I- League. After AIFF, he joined New World Consulting as the Assistant Manager of the Department of Research and Consultancy. His passion for sports motivated him to do a Post Graduate Course in Sports Management. Prior to that, he completed M.A. in Economics.