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  • What spells success for Indian sports leagues?

    What spells success for Indian sports leagues?

    MUMBAI: The sports industry in emerging markets is changing rapidly today. Amongst the various changes that is impacting sports and its allied businesses, is the emergence of sports leagues.

     

    According to a white paper released in collaboration between GroupM ESP and IIM –Ahmedabad, the success of the league is dependent on factors such as the sport and its fan base, the performance of the national team for the sport, design of the league, initiatives to build the fan experience, relationship of the league with relevant sports associations and the involvement of celebrities in the league.

     

    By studying what worked and what didn’t, the report brings to light best practices in the formation and running of sports leagues in a manner that will make them successful.

     

    Sports – The game is changing

     

    Over the past 10 years, the sports firmament has changed fundamentally. There has been an increase in the marketing of sports as well as a rise in the use of sports marketing purposes.

     

    Research indicates that there has been a sharp increase in the governmental support to sports as it is believed to increase societal and economic welfare of the country as well as promote the nation on the global front.

     

    Increased economic activity has also contributed to the growth of sports and its following. Today, sports serves two purposes: One, to be a platform to create marketing opportunities for brands and secondly, to actually create value for sports fans.

     

    These twin purposes go hand in hand, and serve the business and industry as well as the sports fans. For brands and advertisers, it is a win-win situation, in so much as when they pay to sponsor or promote a sport; the sporting event offers them a platform to reach their audience.

     

    As per an industry study report, sports industry in both mature and emerging economies has been growing at a rate faster than the GDP. As of 2011, the size of the industry was estimated at $620 million, growing at a rate of 6 per cent. While the sports economy has always been strong in North America and Europe; in the recent past, it is experiencing a major push in emerging markets.

     

    The report further states that all the BRIC nations have shown impressive growth in sports (India – 17 per cent, China – 20 per cent, Brazil – 7 per cent and Russia – 53 per cent).The growth of sporting events in emerging markets has been accompanied with the rise of several sports leagues.

     

    Professional sports leagues like the Major League Baseball (MLB), National Basketball Association (NBA), National Football League (NFL), English Premier League (EPL) etc have achieved great success in North America (US and Canada) and Europe.

     

    The report states that these leagues have gained worldwide popularity and fan following and in turn has inspired the setting up of similar sport leagues in emerging countries such as India, South Africa, and Sri Lanka.

     

    With a number of new sports leagues being formed in the recent past, the report highlights interesting set of differences.  Some of these leagues are in infancy, a few others are already defunct, and there are a few which seem to have attained some degree of maturity.

     

    As per an industry study, it is estimated that in India, the proportion of spending by average household on education and recreation will rise from 5 per cent in 2005 to 9 per cent in 2025. This, coupled with the rise in middle-class segment (from 4 per cent to 41 per cent from 2005 to 2025) will present a huge opportunity for business of sports to cater to recreational needs of such a large population.

     

    Interest in sports has increased with economic, educational and social advancement of the society. These trends underlie the development and popularity of sports leagues. A brief overview of the various leagues operating within sports in India was analysed as follows:

     

    Hockey – Federation rivalry stymies the initial leagues

     

    There have been several attempts to set up Hockey Leagues in India. The first such attempt was with The Premier Hockey League which started in 2005, but folded up by 2008. Then came the World Series Hockey in 2012. These leagues have been able to attract fans as they presented a more exciting format of the game through minor modification of the rules. However, they failed to sustain interest in the game. Reason: existence of two rival national hockey federations which were involved in disputes. This impacted the participation of players in the leagues.

     

    The country currently has Hockey India, a national federation, which has started the Hockey India League (HIL) that has run two seasons and has performed better than the two earlier avatars.

     

    Cricket – Success after a false start

     

    The professional league trend in cricket began with the launch of the Indian Cricket League (ICL), which was started by Zee Group, a television broadcast company. The BCCI in its wisdom did not endorse ICL and banned players contracted with BCCI from playing in ICL matches. It also exerted pressure on the International Cricket Council, the international cricket federation to stop other national federations from supporting ICL.  With this concerted denial of support, ICL folded up in 2008, three years after it opened shop.

     

    BCCI then launched Indian Premier League (IPL) in 2008, which forever changed the face of professional leagues in the country. IPL has attracted the best of the international players from across the globe.

     

    Kabaddi – The Indian contact sport that has touched the heart of millions

     

    The Pro Kabaddi League (PKL) was started in 2014 with eight teams from different cities. The league is supported by the national and international Kabaddi federations. The teams follow the system of salary caps and its owners are personages from the industry, movies, and sports business. The first season of PKL enjoyed unprecedented viewership and fan following. Another league – The World Kabaddi League which began at around the same time as PKL could not duplicate the success of the latter, even though it had a number of film stars as owners of teams in their league.

     

    Badminton – Shuttling towards increased popularity

     

    Badminton started becoming increasingly popular in India and attracted huge following with the emergence of some world-class players. The Indian Badminton League (IBL) is managed commercially by a sports management firm and has the backing and support of the Badminton Association of India. It started the competitive games in 2013, and was fairly popular as it was able to attract some foreign players, including the world’s number one. It failed though to get some of the best Chinese players. Indian Badminton League has recently been facing issues related to scheduling due to other international tournaments.

     

    Findings

    • Fan acceptability of Leagues – Rather than financial viability, fan acceptability seems to be a better measure of predicting future success of leagues.  To sports leagues and businesses, sportsmen and others who are investing their time, effort and money in sports leagues, this is an important parameter to track and follow-up with concerted action to improve the chances of success.
    • Choice of Sports – The choice of sports can impact the success of a league. Higher the fan base of a sport, the more the fan base of the leagues in that sport. Also, better the performance of the national team, in a particular sport, the higher is the acceptability of the league in that sport. Managers, sports persons and sponsors investing in a league will benefit from analysing the two factors mentioned above, even as they analyse the probable future of the sporting league. Starting a league for a sport that has a large fan following and a national team that is performing at par may be a way to ensure its early survival and growth.
    • Design of the League – The design of the league, more specifically the salary structure can impact the success of the league. Salary caps tend to distribute talent across teams, and lead to more intense competition which has a positive effect on the success.
    • Team Location – Regional teams can help in building team character. Thus, regional team locations enable association with fans of that particular region resulting in a captive fan base, while providing a competitive spark with respect to other regional teams.
    • Game Format and Scheduling – Fans respond positively to minor changes in the game format, but are alienated by major changes. The timing and scheduling of games can impact the success of the league.
    • Fan Experience – The more the social media initiatives by the league, the more the fan acceptability.  Improve the TV viewing experience through engaging broadcast and improve fan acceptability. Employ greater in-stadia engagement for higher fan acceptability of the league.
    • Players – When top regional players, famous foreign players and world class sportsmen participate in the league games, what happens is a cascading of their respective following into the league following. So each of these people are stakeholders in enhancing fan engagement and acceptance.
    • League – Federation Leadership -The relationship between the league and the federation can impact the success of the league. Starting a league in harmony and full cooperation with the federation that controls the game is almost a hygiene factor for the success of the league.
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    Celebrity involvement

     

    Celebrity involvement is a key factor in increasing acceptability and marketability of the league. Stars in the game and stars outside the game are a good combination for league success.

     

  • Saina Nehwal’s brand value set to soar with World No. 1 title

    Saina Nehwal’s brand value set to soar with World No. 1 title

    Soon after being crowned with the international title of World No. 1 badminton player, Indian shuttler Saina Nehwal went on to bag her maiden India Open Super Series title by defeating former world champion Ratchanok Intaton from Thailand.

     

    The two titles have indeed placed the Hisar born player on the global map as the game receives its due in the country. A swell up of her performances is also likely to contribute to her existing brand value, say sports marketers and celebrity marketers. However, not without adding a word of caution. Nehwal will have to continue with her existing pace to command a fat paycheck in the endorsement world.

     

    While prior to her consecutive wins, Nehwal commanded a price of Rs 70 lakh- 80 lakh for a one period deal according to industry experts, it could now easily touch up to Rs 1 crore–Rs 1.5 crore depending on how deep the brand’s pockets are.

     

    Celebrity and sports management firm, CAA KWAN COO Indranil Das Blah says that it is not just becoming the World Number one but also winning the Indian Open, which is a pinnacle no Indian born woman has achieved. “If you look at the current crop of female sports persons, there is no one remotely close to her in terms of achievement. So it will have a significant impact on her brand value, pricing and overall brand image,” he says.

     

    According to Blah, Nehwal has a strong story to tell because of her middle class back ground and therefore brands with a pan India appeal would latch on to her. “I don’t see her endorsing glamorous and niche brands but it could be brands that have a national interest and look at achieving women’s empowerment or women’s issues in the country,” he opines.

     

    Nehwal currently endorses and has been a part of brands across segments like Yonex, Fortune Cooking Oil, Indian Overseas Bank, Whisper sanitary napkins, Emami Fast Relief ointment, Herbalife health products, Top Ramen Noodles and Airtel 3G.

     

    According to media reports, Nehwal was signed by the telecom Airtel when she was world number three for less than Rs 1 crore. She had then won the Gold medal in the Commonwealth Games in 2010.

     

    Asset managing director at assetfzc.com Sanjay M Lal, a veteran with over 20 years of expertise in the field of brand building and sports management, says that in order to have a reasonably impactful brand value, Nehwal will have to maintain her present status for the next nine to 12 months. “While she has been consistently performing and is a star in Indian badminton, but to be world number one is a different ball game altogether,” informs Lal.

     

    For brands that are fence sitters and were wondering to choose between female sports persons like Sania Mirza or Saina Nehwal, the wins will make it easier to settle and close the deal for Nehwal. However, some feel that the cash jump will not be very significant unless a large brand that has not matured comes into play. This will be the first step for Nehwal on the brand value chain.

     

    Impact of her win on the game? Olympic Gold Quest (OGQ) CEO and former captain of Indian Hockey team Viren Rasquinha states that OGQ has been supporting the champion since 2009 and looked after the training aspect of Saina Nehwal. “Obviously its important to have  a role model and a great figure like Saina in every field. Because of her acheivement we hope that thousands of parents across the country will encourage  their kids, especilally their daughters to take to badminton.”

     

    Eureka Mobile Advertising senior vice president Viswanathan Ganapathy says, “There will definitely be a jump in the brand value. In the last few years, she has given global recognition to the game, which has happened after Prakash Padukone in 1980. Saina is a very good mix for an international and local brands as well and would be an ideal fit for a fitness product.”

     

    Ganapathy is of the opinion that Nehwal could ideally endorse brands like Complan and Horlicks, where the brand fit is perfect. Her consistent winning performances including the bronze medal at the 2012 London Olympics could make her as a relevant face for insurance brands too.

     

    It is important to note that when sports athletes and players sign an endorsement deal, they also ask the brand the kind of visibility they would gain. While Nehwal has placed Indian badminton on the global map, the domination of cricket continues as former cricket players like Kapil Dev still bag endorsement deals. It’s akin to how an industry expert, having worked with the likes of Yuvraj Singh and Zaheer Khan and was associated with Percept India, puts it, “Anything other than cricket is like a great Bollywood movie breaking even. But it will not belong to the Rs 100 crore club that the Khans belong to. She was signed with Herbal Life, which is American brand but what have they advertised? For a player other than in the field of cricket, you need an advertiser who gives you Rs 5 lakhs but does promotions worth of Rs 50 lakhs.”

     

    When the visibility falls flat, it goes against the marketing grain of celebrities. However, on an optimistic note, Lal adds that her winning titles consistently have proved that brand ‘Saina Nehwal’ holds great promise. Only time will tell the brands that will sign Nehwal for her promise in the future. For now, take a breather girl. You deserve it and thank you for giving India its due recognition.

     

  • Sony Six and Pal bags telecast rights of Syed Modi International Grand Prix

    Sony Six and Pal bags telecast rights of Syed Modi International Grand Prix

    MUMBAI: Sony Six and Sony Pal will be broadcasting the semi-finals and final matches of the Syed Modi International Grand Prix 2015.

     

    Sony Pal will telecast the live event with Hindi feed between 2 – 7 pm on 24 and 25 January. To further strengthen the viewership of the tournament, the deferred telecast of the semi-finals and finals will be on Sony Six in the prime time evening slot (7 pm onwards). Taking under consideration the growing popularity of badminton in the country, Sony Six has undertaken the route of deferred feed in prime-time to ensure greater audience reach.

     

    Badminton Association of India (BAI) president Akhilesh Das Gupta said, “We are thrilled to be partnering with Sony Six in bringing the final culminating stages of the tournament live to our audience. With the dual language feeds, prime-time telecast, high-quality content and sheer sporting action, we are optimistic in our mission to further advance the popularity of badminton across markets in India.”

     

    BAI vice president, administration T.P.S. Puri added, “It gives us great pleasure to award the broadcast rights of the semis and finals of the tournament to Sony Six. With this viewers will be able to witness some of the best of international and domestic badminton talent take the court.”

     

    Sony Six business head Prasana Krishnan said, “The tournament is an exciting addition to our line-up of some of the best in domestic sports content and we are thrilled to be associated with such a grand event that hosts few of India’s brightest sporting talents. This year with the introduction of the Hindi feed and prime time telecast, we aim to tap into the rising popularity of badminton in India and cut across varied audience profile.”

     

    Olympic bronze medallist Saina Nehwal will be seen looking at kick-starting her title defence against the likes of third seed P V Sindhu and the reigning world champion Carolina Marin of Spain. This year, the tourney will also host the best of domestic badminton talents including P C Tulashi, K Srikanth, Ajay Jayaram, H S Prannoy, RMV Gurusaidutt, Shreyansh Jaiswal and K Ajay Kumar amongst many more, battling it out for the title.

  • Indian Badminton League to commence from 30 September

    Indian Badminton League to commence from 30 September

    MUMBAI: The second edition of the Indian Badminton League (IBL) will be held from 30 September to 15 October, the IBL Governing Council said on Monday as reported by PTI.

     

    The governing council has decided to allow franchisees to increase the team strength from 11 in the first year to 13 players. Each franchisee can pick two more players – Indian or foreign – which will further intensify the competition.

     

    “Badminton competition at the 2014 Asian Games gets over on the 29th of September, 2014. Players can directly fly-in from Incheon for the league,” said the Badminton Association of India president and IBL Governing Council chairman, Dr Akhilesh Das Gupta.

     

    “Last year, too, players had reached Delhi directly from Guangzhou, China, after taking part in the World Badminton Championships. This period ensures us the right opportunity to have world’s best players for the IBL, which already has created a buzz the world over,” he added.

     

    Dr Das Gupta, who is also a member of the Badminton World Federation (BWF) executive council and a vice-president at the Badminton Asia Confederation, said: “BWF is very impressed with the IBL and want to know more about it. They consider India a very important country and what can get bigger than the fact that the BWF Annual General Meeting (AGM) will be held here during the Thomas and Uber Cup.”

     

    The first edition of the IBL, held between 14 and 31 August, 2013, was won by PVP Ventures-owned Hyderabad Hotshots. The team captain Saina Nehwal had remained unconquered in all the seven matches on her way to the title triumph.

     

    “Following the success of the inaugural IBL, many top players are already approaching us for this year’s event. To ensure that world’s best are available for IBL 2014, the IBL Governing Council has decided to make the most of this window,” said Sporty Solutionz chief exectuive, Ashish Chadha.

     

    The league will be played in six Indian cities – Delhi, Lucknow, Mumbai, Pune, Hyderabad and Bengaluru.

  • Sony Six: gunning for pole position

    Sony Six: gunning for pole position

    MUMBAI: If you saw the 2013 film Rush about the fierce rivalry between 70s Formula One racing drivers James Hunt and Niki Lauda, Sony Six seems to be getting into the fast lane too now along with arch rival Star Sports.

     

    Not only does the channel have a diverse sports bouquet on offer, it boasts some of the biggest international sporting properties including The Pepsi Indian Premiere League (IPL), UEFA EURO 2016, Qualifiers for UEFA EURO 2016, European Qualifiers for 2018 FIFA World Cup Russia, Total Non-Stop Action (TNA), The Australian Open Tennis Championship, The NBA, The Ultimate Fighting Championship (UFC) as well as The Indian Open Super Series and The India Open Grand Prix Gold in badminton.

    Yes, arch rival Star Sports has some hot cricket properties featuring India’s official team and other niche Indian sports tournaments, but the idea at Sony Six is to stand out from the competition and break the clutter by bringing in a wide array of sports which have their own loyal fan base.

     

    Says Sony Six business head Prasana Krishnan: “We believe in picking up sports that have a lot of latent potential – like basketball – as we really believe that in terms of infrastructure, it’s easily available all over the country and will slowly gain popularity.”

     

    As for content like UFC and TNA, he reasons that traditionally, the country has always had an active fight sports culture, with some of the best international performances emanating from this sphere.

     

    Sony Six has a full programming slate with a good mix of sports and is also making a statement in terms of content acquisition with back-to-back announcements of global sporting properties.

     

    Speaking of the rights’ acquisition of the FIFA World Cup 2014 and 2018, Krishnan expounds: “If we look at the trend in ratings, every time there is a big event like a EURO or FIFA, we see tremendous growth in interest for football in the country. So, keeping that aspect in mind, football is really an area that has not been explored to its full potential thus far.”

     

    Sony Six is looking to position itself as the home for international football for the next five years. “So be it whichever country that is playing like France, Germany, Argentina or Spain. Every time any of these countries play, the viewers get an opportunity to see their favorite stars and it helps build the brand and audience base further,” adds Krishnan.

     

    Besides, the channel has big plans for a 360 degree marketing campaign to promote FIFA comprising outdoor, print, digital, radio and television. “Six will be the main platform for the on-air promotion and we will also use the whole Sony network to spread the awareness. It’s too early to elaborate on the product as it is still six months away, but we will surely make it viral,” explains Krishnan.

     

    Kicking off Sony Six’s events’ calendar is the channel’s very first live international sporting event – India’s tour of New Zealand starting this Sunday, with five ODIs and two test matches.

     

    “Our portfolio for the current year is quite extensive, starting off with India’s tour of New Zealand, followed by FIFA, then European Central Qualifiers and the Australian Open. Thus, if you see in terms of competition, we certainly consider ourselves among the top sports broadcasters in the country. And all this in just under a year,” says Krishnan.

     

    At just 10 per cent, consumption of other sports vis-?-vis cricket is very marginal, leaving a wide space for other sports to build on their following.

     

    “The Indian market is huge and the way it’s structured is enormous; there is certainly potential in this country for various sports beyond cricket, and we as a channel would like to cash in on this opportunity,” stresses Krishnan.

     

    Are there any plans to infiltrate Hindi speaking markets (HSMs)? “Well, we certainly have a lot of plans in the pipeline as we want to penetrate into that market as well and I know it has been a recent trend for running simulcast of events with Hindi and English commentary. But if you just go back in time, Sony has already tried and tested this proposition during last year’s IPL. So if things work well, I really don’t see any problem in doing so. We have taken the rights for multiple languages’ broadcast as well,” concludes Krishnan.