For the first time, one billion dollars spent on sports sponsorships

For the first time in India, sports sponsorship has crossed $1 billion, with total spend on sporting events at nearly $1.11 billion in 2017, representing an increase of 17.5 per cent in dollar terms and over 14 per cent in rupee terms.

The biggest chunk of that billion dollars spent last year was on the advertising before, during and after the sports events. Sports related advertising is now close to 12 per cent of total advertising spend - up from 11.5 per cent in 2016.

Ground sponsorship or in-stadia advertising raked in the next biggest chunk of moolah for sports sponsorship - showing an improved growth rate last year compared to the year before, when its growth rate fell by more than half.

Team sponsorship spending, which crossed $100 million in 2016, rose another 20 per cent last year in dollar terms and 17 per cent in rupee terms. Appreciation in the rupee vis-a-vis dollar in 2017 compared to 2016 means growth rate in dollar terms is better than in rupee terms.

Franchise fee, paid by team owners, shot up by nearly 25 per cent in 2017 after stagnating in 2016, when they increased by just over one per cent, over the amount spent in 2015.

Players and athletes however, may not remember 2017 with much fondness as their earnings from advertising and endorsements of various products actually dropped by over 17 per cent last year, compared to 2016 when their endorsement earnings grew by more than 14 per cent.