Chapter 1: Industrial/Sectorial Scenario

1.1 History/Evolution of the sport sector:

The documented history of sports goes back at least 3,000 years. In the beginning, sports
often involved the preparation for war or training as a hunter, which explains why so many
early games involved the throwing of spears, stakes, and rocks, and sparring one-on-one with
opponents.

With the first Olympic Games in 776 BC—which included events such as foot and chariot
races, wrestling, jumping, and discus and javelin throwing—the Ancient Greeks introduced
formal sports to the world. The following by no means exhaustive list takes a look at the
beginnings and evolution of some of today's most popular sporting pastimes.
Sports in India reached new heights when Buddhism came into practice. Tiruvedacharya in
Villas Mani describes many fascinating games. They are archery, equitation, hammer-
throwing and chariot-racing.

During Manas Olhas (1135 A.D.), Someshwar writes about Bhrashram (modern-day weight-
lifting), Bhramanshram (walking in today’s time) and also about Mall-Stambha (the sport of
wrestling).

One can easily notice that today’s Olympic disciplines are sophisticated versions of ancient
games played in India. Chess, wrestling, polo, archery and hockey (possibly an alter version
of polo) are some of the games believed to have originated in India, and a part of the great
history of Indian sports.

The history of Indian sports can be traced back to our Vedic age. During the era of Ramayana
& Mahabharata, around 1900 BC – 7000 BC, men of status & honour were expected to be
competitive in sports like Archery, horsemanship, wrestling, weight-lifting, swimming &
hunting.

One of the Vedas, Atharwaveda, written 3000-3200 years back says “Duty is in my right

hand and the fruits of victory in my left”. It essentially holds the same sentiment of traditional
Olympic oath.

1.2 Overall working of the sector

The global sports sector is estimated to be worth between $480-620 billion. However, in
India, sport is yet to be recognized as an economic sector, mainly due to the fact there has
been little or no comprehensive study done on the industry’s size, potential, and on the
available opportunities that are on offer.

The sports industry sector may include several different segments such as sports tourism,
sporting goods (in manufacturing and retail), sporting garments, and the available
opportunities in sporting management and sponsorship. It is seen across the globe that sports
as a full-fledged industry can and may contribute about 1 to 5 percent of the country’s GDP.
However, a lack of sporting culture has held back the growth of a similar industry in India in
the past, despite the growing awareness and interest in various different sports besides
cricket. Hence, due to a lack of industry status along with a lack of sporting culture, corporate
investments in India’s sports have traditionally been limited to only non-profit corporate
social responsibility activities and initiatives, while the scope for exploring profit-related
activities under the sports industry have not been explored in vast depth.

Sport is regarded as one of the largest industries worldwide in terms of generating

employment and revenue. Sports is a multi-billion dollar global industry propelled by
enormous consumer demand. 

All in all, the sports industry in India has tremendous business potential, especially in the
fields of marketing, management/sponsorship, exporting of goods or apparel, and sports
medicine and tourism. Therefore, the time is ripe to facilitate investment mobility so that
corporate houses that are already engaging in sports can upgrade to for-profit sporting
ventures, while business houses that are not involved in sports so far may consider this sector
as an ideal avenue for CSR activities. It’s time to find out whether the sports industry can in
fact be the next big thing for India’s economy.

1.3 Challenges faced by the sport sector:

 Failure to reach optimal performance levels in international competitions.
 Poor movement abilities.
 Lack of proper fitness.
 Poor skill development.
 Bad habits developed from over-competition focused on winning.
 Undeveloped and unrefined skills due to under-training.

1.4 SWOT Analysis:

 Strengths:

o Leadership with credibility in sports and media

o Leadership with strong understanding of industry history
o Financial banking
o Willingness to curry favour with bellwether fans and media
 Weakness
o Wrestler-executives in dual roles lack prior executive experience
o Over-supplied with talent
o Female stars
o Developmental strategy
o Social media
o Legacy IP
 Opportunities:
o Disenfranchised fans and talent
o Increasing value of live sports content
 o International markets
o Improved monetization of peak events
o Working relationship with New Japan
 Threats:
o WWE competition
o Covid-19
o Fragmentation among EVPs
o Drug policy

1.6 GDP Contribution by the sport sector

Sport as an industry contributes to about one to five per cent to the GDPs of various
countries. India is hosting a series of international sporting events, which are likely to boost
the retail market. Many foreign sports industry have shown interest in entering
the Indian market.

1.7 Some facts/figures regarding the sector

A unique feature of sport is the phenomenon of people developing irrational passions

for sporting teams, competitions or athletes. Sport has a symbolic significance in relation to
performance outcomes, success and celebrating achievement that does not occur in other areas of
economic and social activity.
9 fun facts about sporting equipment:
 Shin guards date back to the Ancient Greeks and Romans.-Today, we use shin guards in
many different sports to protect (obviously) our shins from injury. But this piece of sports
gear was in use thousands of years ago by the Ancient Greeks and Romans. At that time, shin
guards were made from bronze (or another hard metal) and were worn for protection during
battle. It wasn’t until the 19th century that the purpose of shin guards shifted from battle gear
to sporting equipment.

 Golf balls were once made of leather and feathers.- Of all sporting equipment, the golf ball
has arguably undergone the biggest changes. In the 19th century, golf balls also went by the
name of “feathery” or “featherie” ball. This contraption was a hand-sewn, round, leather
pouch stuffed with chicken or goose feathers and painted white. However, a “feathery” was
both difficult and expensive to make. Feathers had to be boiled and softened before they were
stuffed into the leather pouch. It was a challenge to make the leather pouch perfectly round,
and it sometimes would split open upon impact. Nonetheless, the “feathery” ball remained the
standard in practice for many years until the introduction of synthetic materials.

3. Athletic shoes make up 20% of all shoe sales in the U.S. - Boots, sandals, high heels. The
shoe market is densely saturated with variety and choice. So, where do sneakers fall in the line-up?
Athletic shoes account for 20% of all shoe sales in the U.S. When it comes to sporty footwear, Nike,
Adidas, and Under Armor are the dominating brands. But, if you’re speaking specifically about
sneakers, Nike is the reigning champion, claiming 90% of all basketball sneaker sales.

  4. The first yellow tennis ball was used at Wimbledon in 1986.-Ever wonder why tennis balls are
yellow? The answer is quite simple: this vibrant color makes the ball easier to see. It was Wimbledon
that made this fluorescent yellow the new standard for tennis. Since 1877, the Wimbledon
Championship had used original, white tennis balls for play. However, in 1986, in order to make the
balls more easily visible on television, players used yellow balls for the first time at this British
tournament.

 5. The average lifespan of a baseball is 7 pitches.-The next time you play a game of baseball with
your friends, think about the lifespan of that baseball. Just how long do you think that ball would last?
According to experts in the field (no pun intended!), the average lifespan of a baseball is just seven
pitches.

 6. Speedo’s LZR Racer swimsuit was banned from the Olympics in 2008.-Speedo’s LZR Racer
was a line of competition swimsuits released in February 2008.What was so special about this
swimsuit design? The LZR Racer was created to allow for better oxygen flow to the muscles and to
help hold the body in a more hydrodynamic position. In the 2008 Olympics, 23 swimming records
were broken – and 98% of the medal winners were wearing this Speedo suit. Of course,
controversy broke out. Was this suit really helping athletes break records? Opinions were mixed, but
by the end of the year FINA (the International Swimming Federation) banned all body length
swimsuits (including Speedo’s LZR Racer suit) from the Olympics.

 7. Adidas spent 2 ½ years designing the soccer ball for the 2014 World Cup.-For soccer fans, the
2014 World Cup was a big moment during the summer. But for Adidas, the excitement started over
two years before. The sports company spend 2 ½ years designing and testing the ball for the big
competition in Brazil. The final design, featuring a brightly colored ribbon pattern, represented the
traditional, multi-colored bracelets worn in Brazil. Processes for testing this famous soccer
ball involved more than 600 of the world’s best players, across 30 teams and in 10 countries. In fact,
this ball was the most-tested EVER by Adidas as the ultimate goal was to create a soccer ball suitable
for any possible condition.

 8. A Spalding basketball has a lifespan of 10,000 bounces.-A Spalding basketball is made of a

synthetic rubber and leather material. So, just how long can this piece of sports equipment last? The
average lifespan of a Spalding basketball is 10,000 bounces. That means that, for recreational use, a
basketball should last between 4-5 years. Now, the question is: just how many games can you play
within 10,000 bounces?
 9. The strings on tennis rackets used to be made with sheep intestines.-When tennis rackets were
first developed, sheep or goat intestines were used for the strings. Although it may sound a little gross,
these materials were actually ideal for stringing rackets because of their soft, yet resilient nature. In
fact, sheep and goat intestines have much better tension than most comparative materials. This means
that the strings could be strung tightly in order to improve ball control and return power, without
increasing shock impact

1.8 Global Perspective

The global sports industry is worth up to $620 billion today. With growth that is faster
than global GDP, its long-term prospects appear strong. The sports industry today spans the
field of play from the food and memorabilia stands at the stadium, to media rights and
sponsorships.

1.9 Summary
The sports sector (SS) has been included in the Classification of Economic Activities in the
European Communities, NACE. It consists of two sub-sectors, including Operation of Sports
Arenas and Stadiums (activity 92.61, further referred to as SAS) and Other sporting activities
(activity 92.62, further referred to as OS). International Trends of Sports Sector Development
During the recent years, the European sports sector has experienced a number of changes, affecting
the areas of sector management, staff employment and technological advancement. The key factors of
development of the European sports sector are the growth in sporting activities, globalisation, new
technologies and ageing of the population. The importance of sports has also grown after the
European governments started to invest more into the sector, recognising its positive role.
During the recent ten years, as a result of a more active participation in sporting activities on
the part of the population, the employment in the sports sector has increased by almost 60
%.Quite likely that in the future the sector will be characterised by the prevailing part-time
employment and low earnings. High competition for better paid occupation posts will remain.
The level of employment should increase among semi-professionals or amateurs. The demand
for sports related occupations (sport psychologists, physiotherapists, sports commentators, physical
training coaches, etc.) is likely to go up.