MUMBAI: Key stakeholders from the sports ecosystem Thursday highlighted how government interference was hampering plans of broadcasters and investors alike in Indian sport.
This was one of the key issues discussed during the session ‘Sportsonomics: Driving Indian Sports Forward, On and Off the Field’, at the FICCI Frames convention, which concluded here Thursday,
Industry stalwarts on the lively panel included IQuest CEO Nitin Kukreja, AVIA chief policy officer John Medeiros 21CF head of government relations in Asia, Matthew Kurlanzik, SportzLive chairman Atul Pandey, GroupM sports business head Vinit Karnik and media personality Chintamani Rao, .
Medeiros opined that the Indian government must take a leaf from the European Union’s book by creating regulations that balance the need to make sport public-oriented as well as commercially viable through economic incentives and investments.
He also cited the example of a sports-developed nation such as Australia having had a similar challenge two years ago, when some sports or its events weren’t shown by private players. However,the government took action through a virtual sifting (listing and delisting) of sports that gave broadcasters more freedom to invest in media rights strategically.
Speaking on the topic of public broadcaster Doordarshan deciding to showcase sporting events of national importance at the 11th hour, Medeiros insisted that private players are the key for sporting success and certainty in rules is the key for them in formulating plans of monetization from rights. They are responsible for bringing innovations in the game, which brings fans closer to it and creates greater value of the sport, upgrading the economy in the process.
Rao, a media expert, added that Indian sports broadcasting is suffering from double standards due to the rule of private players having to share their live feed of a sporting event not applying to Doordarshan. An example of the Odisha Men’s Hockey World Cup 2018, of which FICCI’s convention partner Star India was supposed to hold exclusive rights for the same, was given.
The panelists agreed that there seems to be no clarity of policy on which events in the same sport, must be given national importance. In cricket for instance, the recent India-Australia matches were perceived to grab more eyeballs and hence was focused more upon as compared to the New Zealand vs India ODIs prior to that.
Kukreja referred to this as ‘ad-hocism’ and added to the point that broadcasting standards in India will improve with better performances at the international level. He stated that the government cannot afford to weaken the growth of sport in India by discouraging international properties to hold events in the country by paying up more taxes. This is said to be the reason of Formula 1 not coming back with a race, the Formula E not ready to invest in it and the ICC having to renegotiate global events rights with the BCCI.
Kukreja and Karnik argued that broadcasting policies are a product of a holistic sporting ecosystem in the country. They backed the funding and developing of quality football stadiums, youth leagues and creating more sporting heroes by giving them exposure to the best competition available.
A certainly consistent television framework can be created if there is more fan engagement amongst the youth in schools and colleges. At present, in-stadia audiences in other sports besides cricket in India is said to be extremely low.
In terms of some sporting federations or organisations earning revenues from broadcast rights, Rao said that the percentage was 90% for Hockey India, 85%+ for AIFF and 47% for the BCCI. However, the overseas panelists agreed that India has a long way to go in integrating youth and university competitions in broadcast agreements.
Kurlanzik claimed that while the NBA earns 60% of its revenues from media rights, college basketball in USA has attracted a $20 billion deal for 12 years due to the pathway it provides to the big league and investment being considered more as a reinvestment.
Pandey, who has owned exclusive licensing rights for several Premier Badminton League (PBL) franchises, said that a junior tournament is already in the pipeline and signs are encouraging. He pointed out that there has been an increase of 40% in enrolments in the Pullela Gopichand Badminton Academy following PBL’s inception and stellar performances from the likes of PV Sindhu, K Srikanth and Saina Nehwal.
Pandey is bullish about the prospect of the emerging sports economy becoming more lucrative an option for investors and broadcasters due to lesser risks that it poses for them. He called for an upgraded, unified CSR policy created for companies to invest in sport in India, which at present is only for the Olympics. An uncertain environment for investing is a recipe for disaster in event management as well, which hampers the growth of Indian sport.
Lastly, the panel also recommended the setting up of an independent, regulatory authority by the government for sports media specifically which can resolve disputes and act as a mediator between them and the private players in the industry.
