Sports sponsorships reach ₹15K cr in 2023
Notably, cricket dominated with ₹13,701 crore, growing 13% year-on-year
Sports sponsorships soared to ₹15,000 crore in 2023, up 10.95% from ₹14,209 crore a year ago, according to a report by GroupM ESP, the entertainment, esports and sports division of GroupM India. This expenditure includes ground and team sponsorships, and franchise fees, as well as athlete endorsements, and media spending. Notably, cricket dominated with ₹13,701 crore, growing 13% year-on-year, and accounting for 87% of the total spending.
The report titled, Sporting Nation— Building a Legacy, highlighted the significant growth in digital ad revenues, accounting for 40% of overall ad spending. This surge was fuelled by the availability of Indian Premier League (IPL) matches and ICC Men’s Cricket World Cup matches for free on OTT platforms, in contrast to the previous season, when the matches were behind a paywall.
The IPL’s April 2023 decision to split the rights for the first time into digital and TV packages for the 2023-27 cycle, involving media giants Viacom18 and Star Sports, might have led to flat growth amid a slowdown in advertising spending. However, the ICC Men’s World Cup provided a year-end boost to spending. Overall, sports ad spending in 2023 remained steady, with less than 1% growth over 2022, despite the transition from
TV to digital.
In 2023, TV ad spends for IPL dipped 17%, but digital saw robust growth of over 25%. In contrast, during the World Cup, both TV and digital advertising surged by over 40% compared to the 2022 ICC Men’s T20 World Cup.
Though this is not directly comparable due to the format difference—T20 in 2022 versus ODI in 2023—it resulted in more airtime for the ODI series, said Vinit Karnik, 749 24% 927
Share of sports industry spending, by sports Cricket share Emerging sports share 85% 15% 87% 13% head of entertainment, esports and sports, GroupM, South Asia.
The IPL, a premier T20 cricket tournament, witnessed its valuation skyrocket to $10.7 billion last year, marking a significant 28% increase from the $8.4 billion in 2022. This marks a 433% rise in IPL’s brand value since its inception in 2008.
The broadcast value of the IPL paints an even more impressive picture with each match contributing $14.2 million, or around ₹118.5 crore. This figure exceeds other prestigious sporting events worldwide, such as the English Premier League (EPL) and Major League Baseball (MLB) from America, which have a permatch broadcast value of $11 million, or around ₹91 crore. Even the National Basketball Association (NBA) lags, with a permatch value of $9 million, or ₹75 crore. The only event to overshadow IPL’s popularity is the National Football League (NFL) from the USA, which boasts a permatch broadcast value of $17 million (₹141 crore).
Emerging sports witnessed a marginal decline, falling 1% in 2023, collectively accounting for 13% of total industry expenditure, amounting to ₹2,065 crore or $249 million. Most of the business was dominated by franchise cricket and Team India.
In 2023, sports sponsorship in India continued its impressive growth trajectory. Brands across the country significantly increasedtheirinvestments,solidifyingthe industry’s growing influence. Sponsorship spending, comprising ground and team sponsorships, and franchise fees, allowed businesses to build valuable consumer connections through partnerships with sporting events, teams, and other properties.
The overall sponsorship revenue in 2023 reached a robust ₹7,345 crore, up 24% from the ₹5,907 crore ($748 million) in 2022. Ground sponsorship was the largest contributor, accounting for 42% of the total spending with ₹3,117 crore, up 6% from a year earlier.
433% Rise in IPL’s brand value since inception in 2008