MAM
Sports industry spending exceeds Rs 9,500 cr in 2021: GroupM report
Mumbai: The year 2021 saw a resounding comeback for sports sponsorships and media deals, as compared to 2020 when the pandemic took over. The size of the Indian sports industry spending is estimated to have surpassed Rs 9,500 crore last year, according to the latest sports sponsorship report released by GroupM India’s entertainment, e-sports and sports division GroupM ESP.
With Rs 6,018 crore, sports advertisement expenditure (adex) surpassed 2019 levels in both TV and digital. Cricket yet again, remains the most popular sport, accounting for 94 per cent of the sports adex. The media spending on cricket in 2021 was higher (Rs 5,657 crore) than the overall media spends of 2019 (Rs 5,232 crore).
The ninth edition of Sporting Nation in The Making – GroupM ESP’s sports report takes into consideration the sponsorship spends, player endorsements and media spends on sports properties. The spending on sports celebrity endorsement grew by 11 per cent year-on-year in 2021, says the report. A total of 444 brand endorsement deals have happened in 2021, with cricketers accounting for 318 endorsement deals and 87 per cent of total brand endorsement value. The Olympic Year of 2021 increased emerging sports athletes’ endorsements by 79 per cent, accounting for 13 per cent of the overall brand endorsement value, as per the report.
2021 got our sporting nation back to a billion-dollar scale with a 62 per cent growth over 2020, the report said. India’s performance at the Tokyo Olympics has been a morale booster for budding sports talent in the country and 2022 will bring new opportunities in multi-sport events.
The household penetration of TV sets in different markets over the country saw a major role in the growth of sports properties. With this, TV continues to be the largest medium since 2021 saw overall ad spends of Rs 5,051 crore, which was a growth of 59 per cent over 2020 and we saw digital spends touching Rs 965 crore.
“2021 was a year of a major comeback for the sports industry. Not only in sports but we saw growth in sponsorships, endorsements, and media expenses in 2021,” remarked GroupM South Asia CEO Prasanth Kumar. “This year will also be a good re-start point for brands to invest in sports properties since sports will see a rise and will in-turn deliver ROI to brands.”
“We even saw e-sports gaining significant traction and there was a major rise in the number of gamers in the country. Properties like PKL, ISL, etc. are also seeing a major rise in followers which goes to show that India is heavily invested in overall sports from an interest and inquisitiveness standpoint. As for cricket, we are seeing a growing interest by foreign private equity giants investing in Indian cricket which is proving that cricket will continue seeing a huge surge in India and with 2021 getting cricket back on track, we are seeing 2022 racing ahead, aiming to cross Rs 10,000 crore mark,” Kumar further said.
Acceptance of visual media for live sports broadcast by fans led to a great demand of platforms like SonyLiv and Disney+ Hotstar who are now streaming a variety of sports for their audiences, says GroupM. The study finds the OTT space becoming more competitive in the years to come since India is adopting OTT for live streaming sporting action.
“India as a sporting nation has finally arrived, overcoming all barriers brought in by the pandemic,” stated GroupM South Asia head – sports, entertainment and e-sports Vinit Karnik. “Cricket being the hero of India, contributed 88 per cent of the sports spends. IPL and T20 WC boosted the sports adex growth. We also saw emerging sports contributing 12 per cent on the overall sports spends. The media spends in 2021 were the biggest contributors, who accounted for almost two-thirds of all sports industry spending.”
“While sports celebrity endorsement was on the rise in 2021, Virat Kohli, MS Dhoni, Rohit Sharma, Neeraj Chopra and PV Sindhu are the top athletes in the sports celebrity brand endorsement space. 2022 will be an exciting year with the Asian Games, Fifa World Cup, Premier Badminton League, and many more properties coming up, and the fans are in for a treat. The sports arena is an exciting drive ahead from the fanbase lens and the business lens too and we have a host of opportunities in the Indian sports industry,” he added.
With an action-packed 2021, media spends in sports saw some heavy scoring in India as brands and consumers were brought closer by broadcasters and technology also played a very crucial role in evolving the way people appreciate sports, according to GroupM.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
