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OpinionsIndia Must Spend Big On Sports To Build Global Reputation

India Must Spend Big On Sports To Build Global Reputation

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BY NANTOO BANERJEE

India may rank lowly at 104th position on the Federation Internationale de Football Association (FIFA) men's table, dropped from
94th in 1996, its enthusiasm over the game is probably among the highest in the world. Over 300 million Indians, numbering close to
the entire population of the United States, are watching on the electronic media the ongoing FIFA World Cup games in Qatar. All
FIFA World Cup 2022 matches are telecast live on Sports18 and Sports18 HD TV channels in India. Viewers are also subscribing to
the channels with their respective DTH providers. The live streaming is available on the Jio Cinema app and website for free. Jio
Cinema is offering live streaming of matches, highlights and other FIFA World Cup 2022 content in five languages – English, Hindi,
Tamil, Malayalam, and Bengali. The FIFA World Cup is bringing a huge business for these channels by way of advertising and
subscription while making Qatar a household name in India.
Nearly 30,000 Indians are expected to visit Qatar to physically watch FIFA World Cup matches between November 20 and
December 18. Two weeks ago, Indians were ranked eighth among ticket buyers. Four years ago, there were some 18,000 Indians in
Russia to watch the previous FIFA World Cup 2018 matches. The number of Indians present to watch the matches in Russia was
the third highest from non-competing countries after the US and China. Tickets don't come cheap. The hottest ticket of the FIFA
World Cup 2022 tournament will be for the final at Lusail Stadium on December 18. A category IV ticket for the final costs $205.69,
while the cheapest ticket for a non-Qatar resident is $603.36. Category I tickets cost a whopping $1,604.39 each. Approximately
three million tickets have been sold for the eight world cup venues in Qatar. FIFA anticipates that the event will collect a record
amount of money, surpassing the roughly $5.4 billion mopped up during the 2018 world cup hosted by Russia. Additionally, FIFA
has sold around 240,000 hospitality packages.
Qatar, the world's smallest country to host a FIFA world cup, has a land mass of only 11,571 sq.km with a total population of 2.9
million of which 2.3 million are expatriates including 7.5 lakh Indians. It boasts the world's highest per capita income of around
US$134,000. So far, Qatar is said to have spent $229 billion to spruce up its infrastructure, build new stadiums, training sites, hotels
and other facilities to organise the world cup tournament. The amount is 25 percent more than the country's GDP of approximately
$180 billion in 2022. The investment is expected to pay handsome dividends in the coming years. Global financial analysts have
estimated that Qatar's GDP will rise by 4.1 percent by the end of 2022 itself. The tournament would contribute about $20 billion to
the country's economy. The most expensive world cup football ever may also bring some adverse impact on Qatar's economy.
Overspending on infrastructure and stadiums has led to some investors being in massive debt and left with constructions that serve
little use after the world cup matches end.
Globally, sports is worth nearly a trillion dollars. The countries traditionally making large investments in sports are
also reaping good returns in terms of money and reputation. They include the US, China, Russia, Brazil, Argentina, Germany, the
UK, Spain, Italy, Australia, the Netherlands and France. India ranks nowhere in the league. The government and business
spendings on sports development in India are practically negligible. The national sports for 2022-23 allocated an expenditure
of only Rs.3,062.60 crore or equivalent of around $380 million. Compare this with the individual income of some of the 2022 global
football stars such as Lionel Messi ($130 million), Cristiano Ronaldo ($115 million) and Neymar ($95 million). Basketball's LeBron
James earned around $121 million. The global sports industry is estimated at over $600 billion contributing around 0.5 percent of
the world GDP. In some countries, it ranges to even up to five percent of their GDP. In India, the sports industry contributes only 0.1
percent of the GDP.
India's poor spending on sports is best reflected on its performance in the Olympics. The country's best ever Olympics
performance was recorded in the 2020 Tokyo Olympics, earning a total of only seven medals, including a gold, two silver and four
bronze. In contrast, the US bagged 113 medals, China 88, Russia 71, the UK 65 and Japan 58. India held 48th position in the
medals tally among participating nations. India had sent its largest-ever contingent of 126 athletes to the 2020 Tokyo games. India

will need substantial investment in sports to improve its global performance. Unfortunately, neither the government or private sector
industry has the will to make such an investment considering the fact that it does not promise an immediate return.
Traditionally, public sector organisations such as Indian Railways and services have been major spenders on sports
development. The private sector funding of sports is mostly linked with tax breaks and through the corporate social responsibility
(CSR) scheme. The investment is rather minuscule compared to the overall CSR spending by industry. During FY21, Reliance
Industries (Rs.49 crore), Kotak Mahindra Bank (Rs.16.88 crore), Tata Steel (Rs.15.99 crore) and IndusInd Bank (Rs.10.64 crore)
were among the top spenders on sports. According to the National CSR Portal run by the Ministry of Corporate Affairs, out of the Rs
24,864.11 crore spent on CSR in 2020-21, sports accounted for only Rs 240.9 crore.
Sports is the biggest image builder of a nation. And, globally, no game is as popular as football. This explains why Qatar, the
world's richest country, decided to spend such large sums to host the FIFA World Cup 2022. After building a billion-dollar air base in
the mid-1990s, which it offered to the US, Qatar's ruling Al Thani family runs Qatar Airways, adjudged as the world's best airline for
seven years in a row, and powerful media network, Al Jazeera. It has been making large investments in globally
popular sports to further enhance the country's international reputation. Qatar Sports Investments purchased Paris Saint-Germain in
2011 and turned a rickety French football club into a European powerhouse. Various Qatari organisations have struck sponsorship
deals with European clubs such as Barcelona (£30 million a year to sponsor its shirt), Real Madrid, Bayern Munich and A.S. Roma.
Back home, the government spends prodigiously on a Qatari football league.
India has a lot to learn from Qatar's hosting of the FIFA world cup as part of its global reputation building exercise. With the size
of India's economy showing an impressive growth — $40-trillion GDP by 2047 as predicted last week by Reliance Industries
chairman Mukesh Ambani — the country has to work hard to enhance its global reputation by gradually becoming a sporting
superpower. India will need large government and private equity in sports to make it possible.

(IPA Service)

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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