Showtime for Sports in India

While sports has always been considered a key part in overall growth and personality development, not much attention has been paid to it over the years. This is changing rapidly. The Indian sports industry is expected to reach USD100 billion by 2027. Some catalysts for these changing trends are discussed below.

Spending and Initiatives

There has been an increase in the Central Government’s spending on and attention to sports in India. A sizeable amount of funds was allocated to the Ministry of Youth Affairs and Sports (MYAS) in 2023 (approximately USD33.96 billion) and in early 2024 (approximately USD34.42 billion), ahead of the 2024 Olympic Games in Paris. The funds will also be used for national camps, providing better infrastructure and equipment to athletes, and appointing coaches (among other things).

The Khelo India Scheme was introduced for the years 2021 to 2026 in order to (inter alia):

• create sustainable infrastructure for sports in India;
• promote rural and tribal games;
• enable women’s participation in sports; and
• promote sports among people with disabilities.

This scheme envisages using government funds, corporate social responsibility (CSR) funds of private entities and public private partnerships (PPPs) to further the objective of the Scheme.

In addition, the draft National Youth Policy 2023–32, which targets nearly 50% of the Indian youth population, aims to (inter alia):

• set up a talent registry for sports, for local talent to grow and flourish at national and international levels in the future;
• encourage greater physical activity in schools;
• place emphasis on health and fitness; and
• support adventure sports organisations in organising adventure expeditions across India.

The University Grants Commission (UGC), one of the key regulators for higher education in India, also notified the UGC (Institutions Deemed to be Universities) Regulations, 2023, which enable the setting-up of greenfield institutions deemed to be universities under the “Distinct Institution” category if they have a focus on sports.

Sports is a state law subject in India, meaning that the states (primarily) have the power to regulate matters relating to sports. States in India also do not shy away from spending on sports and infrastructure. For example, between 2023 and 2024 (to date), the Karnataka government announced a sports city of approximately 100 acres in Bengaluru; Maharashtra launched schemes to prepare sportspersons for the Olympic Games through establishment of sports excellence centres; Odisha encouraged educational institutions to spend on sporting competitions; and Haryana announced formulation of an “aero sports policy” to promote sports tourism.

Recently, in line with the Khelo India Scheme, various state governments have also explored the PPP model for developing sports infrastructure in the country. Indore, Madhya Pradesh, is set to open a large sports complex based on a PPP model. Similarly, the state government is envisaging a sports complex in Lucknow, Uttar Pradesh, where the governmental body would provide the land and the private player would handle construction.

The private sector has also been independently investing in the growth of sports, by:

• setting up sports institutions;
• offering specialised courses relating to sports; and
• providing grants and sponsorships (including CSR initiatives), which help develop sports at the grassroots level.

All these new developments bring interesting legal issues relating to (among others):

• land title;
• feasibility studies;
• project financing;
• construction-related legal issues and compliance;
• intellectual property (eg, training methodology);
• governance issues involving sporting bodies;
• grants; and
• contractual issues.

Indian and international partners entering this space need to structure deals carefully while keeping in mind the regulatory, legal and contractual nuances.

Rights

There has been an increasing trend of the glamorisation of sports in India.

The fact that watching sports is no longer limited to stadiums but is telecast live, such that a game can be seen by millions (if not billions) in India on televisions and mobile phones, is adding to the attraction and fan following of sports.

Exploitation rights

2023 saw a cricket fever spike as the country played host to the ICC Men’s Cricket World Cup. While major broadcasters were competing for exclusive broadcast and streaming rights, the following rights also enjoyed prominence (among others):

• sponsorship deals (eg, regarding title sponsors, jersey sponsors, equipment sponsors, etc);
• advertisement slot deals;
• gamification deals;
• ticketing rights;
• player endorsements; and
• merchandise rights deals (eg, regarding sale of official merchandise). 

While cricket has always ruled the hearts of Indians, craze for sports and exploitation of such rights is no longer limited to cricket alone; there is definitive uptake regarding viewership of other sports as well. 

Almost all well-known sports in India have their own sporting league, such as:

• the Indian Premier League (IPL);
• the Indian Street Premier League;
• the Women’s Cricket League;
• the Premier Badminton League;
• the Indian Super League (for football);
• the Prime Volleyball League;
• the Indian National Basketball League; and
• the Pro Kabbadi League.

These leagues generally have tournaments once a year. There is also an auction for teams (franchising) and players, and various other rights (such as broadcast and digital streaming rights) for such tournaments. Several other exploitation rights (eg, league or team-specific sponsorships, advertising, ticketing, etc) are on also offer.

2023 and 2024 to date has seen some top Indian film actors (eg, Amitabh Bachchan, Hrithik Roshan, Akshay Kumar, Ram Charan, Surya, Kareena Kapoor and Saif Ali Khan) and corporates (eg, Adani Group, Capri Holding, Royal Challengers Sports, JSW Sports, etc) come forward in support of sports and becoming team owners. 

Though new, there is also a trend of Indian celebrities (eg, Shah Rukh Khan, who owns the Abu Dhabi Knight Riders) as well as HNI-owned entities such as JSW Sports (which owns Pretoria Capitals), Adani SportsLine (which owns Gulf Giants) and Reliance Industries (which owns MI Emirates) investing in or owning teams in international leagues.

This trend has not only increased the value of media rights but has also introduced legal complexities, such as:

• local and cross-border structuring, including for rights (eg, which entity should hold the rights);
• tax and exchange control law implications;
• intellectual property law-related considerations (eg, for brand name trade marks, logo copyright, composite logo, brand guidelines compliance, etc); and
• documentation concerning exploitation of a plethora of rights connected with a league.

There are also legal nuances connected with overseas funding, donations and acquisitions, which need to be considered. While these issues may sound commonplace in more established markets, India is just embarking on the journey towards understanding and unlocking the value of media rights.

Given the value of rights, it is natural to take every step possible to prevent their infringement. 2023 saw major broadcasters/platforms such as Viacom18 (which obtained the TV and digital rights for all IPL matches from 2023 to 2027 for approximately USD2.5 billion) and Star (which had the global TV and digital rights to all ICC events for the years 2015 to 2023) knocking on the door of Indian courts, seeking injunctions/dynamic injunctions against rogue websites and platforms to protect their exclusive rights.

Personality rights

As people get hooked on watching a sport on television and via digital means, they start appreciating the sport and recognising the players. Promotions, advertising and sponsorships, etc, augment their personal brand. Therefore, it is  common for players to exploit their personality rights by way of endorsement deals, and to grant persona or likeness rights for caricatures, games and non-fungible tokens (NFTs), etc.

In recent years, some famous Indian cricketers have partnered with digital collectibles platforms to launch their own cricket NFTs. The issuance and trading of NFTs relating to iconic moments and other digital collectibles of players has raised legal questions concerning ownership and licensing of intellectual property (IP), data protection and contractual obligations, among other things.

2023 saw the interesting case of Digital Collectibles Pte Ltd and Others v Galactus Funware Technology Pvt Ltd and Another, wherein the Delhi High Court declined to issue a temporary injunction against a gaming platform that was using the name and likeness of certain cricketers to create NFTs. In this case, the platform was using digital player cards with original artistic renditions (not real images), names and statistics of cricketers. The court stated, inter alia, that:

• in order to make a case of violation of the right to publicity, it is necessary to prove whether the identity of the celebrity was used to promote the sale of a product/service or to show its endorsement by/association with the celebrity without their consent;
• the right to publicity is not an absolute right in India, and it cannot impinge the right to freedom of speech and expression enshrined in the Indian Constitution; and
• publicly available information cannot be the subject matter of an exclusive licence by the player in favour of a third party, and usage of players’ names, images and statistics for commercial gain would also be protected.

The case is currently under appeal and will pave the way for interesting jurisprudence on how personality rights are protected in India.

Advertising

Sports betting continues to be illegal in India. The Ministry of Information and Broadcasting, through a string of advisories issued over the past few years and most recently in March 2024, has strongly advised media entities against carrying:

• advertisements of online sports-betting platforms; and
• surrogate advertisements for offshore sports-betting platforms (including in the guise of sports news websites) targeted at Indian audiences.

In fact, the Board of Control for Cricket also recently issued an advisory specifically restricting its franchisees from partnering with betting and real-money gaming (not including fantasy sports gaming) brands.

New Technology Enhancing Sporting and Experiences

Ahead of the Men’s Hockey World Cup in 2023, Hockey India became the first National Sports Federation to enter the world of metaverse by introducing “Hockeyverse”, featuring several unique attractions (such as famous hockey stadiums) that global hockey fans can experience virtually. Shortly after, the International Cricket Council (ICC) introduced its own metaverse to enhance fan interaction during the 2023 Cricket World Cup in India. 

In 2023, JioCinema, a popular OTT platform in India and the official streaming partner of IPL, introduced an interactive cricket viewing experience where fans can:

• select camera angles;
• use the best angles for key highlights;
• rewind;
• set commentary language; and
• view live statistics during the match.

Fan interactions and quizzes (among other features) were also offered.

Tech Mahindra, one of the leading tech companies in 2023, announced its building of a cloud-based platform that will provide a series of immersive sports experiences, including augmented and virtual reality experiences, coupled with metaverse gamification. In fact, Tech Mahindra has secured a deal with top sports teams, such as India-based cricket team Punjab Kings and US-based football team Jacksonville Jaguars, for utilising this platform to introduce immersive fan experiences.

Convergence of technology and sports will bring its own legal nuances and challenges. As more sets of rights are created concerning technology, contracts will need to be specific about the nature of rights granted, and about the restrictions, mode and manner of exploitation, etc. Cross-border deals will also involve IP law issues, tax issues and exchange control implications, among others. 

Wrestling

2023 to 2024 saw women wrestlers in India protesting against alleged misbehaviour (including sexual harassment) by coaches and the President of the Wrestling Federation of India (WFI).

This led to a series of events, including police complaints, filing of cases in court and the setting-up of committees to investigate allegations. These events also involved intervention, statements and reactions of bodies such as the Indian Olympic Association, the International Olympic Committee and United World Wrestling (UWW), as well as the suspension of the WFI by the MYAS until further notice. In fact, UWW had also suspended the WFI for the latter’s failure to conduct elections in time. As of February 2024, the suspension has been lifted with certain conditions.

On a separate note, in October 2023 India’s Supreme Court, dealing with a writ petition seeking implementation of the provisions of the Sexual Harassment at the Workplace (Prevention, Prohibition and Redressal) Act, 2013 at state/UT level, directed (inter alia) sports institutes, stadiums, sports complexes, or competition or games venues to establish internal complaints committees for reporting sexual harassment, and to report their legal compliance therewith. States/UTs were also asked to formulate orientation and training programmes in this regard. The case is still ongoing in court.

Esports

The push to develop the esports industry in India is apparent. The Indian esports industry is expected to reach USD140 million by 2027, and multiple states are taking initiatives to promote the this industry. For example, between 2023 and 2024 (to date), Madhya Pradesh launched India’s first “Esports Academy”, which received over 40,000 registrations for 200 available seats; the Electronic Sports Authority of Tamil Nadu (the apex association for esports in the state of Tamil Nadu) is also making efforts to introduce esports to students in rural schools; and Uttar Pradesh plans to give a major boost to esports under its new sports policy, approved by the State Cabinet – accordingly, Uttar Pradesh plans to establish several esports centres in the state, where players will be provided with the required facilities and resources to develop and hone their skills.

There are also several non-profit organisations in India that aim to promote, encourage, organise, educate and train in esports (such as the E-Sports Federation of India and the E-Sports Players Welfare Association).

The forgoing is testament to the fact that esports has marked a significant trend in Indian sports law.

To align with this trend, the Indian government has notified amendments to the Government of India (Allocation of Business) (Three Hundred and Seventieth Amendment) Rules, 2022, officially recognising “esports” (under multisport events) to be regulated by the MYAS, and “online gaming” in India to be regulated by the Ministry of Electronics and Information Technology (MeitY).

The law regarding esports is evolving. The Indian states of Sikkim and Nagaland already have laws regulating esports. These states have a licensing regime which permits offering such esports within the state.

The state of Rajasthan is contemplating regulation for esports under draft law.

In April 2023, India notified amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (the “Online Gaming Rules”). The definition of “online games” in the Online Gaming Rules is broad, and covers free-to-play and real-money games. The criteria include that the games are offered on the internet.

Generically, esports are organised video game competitions where players compete, individually or in teams, in a virtual environment. Esports would likely fall within the definition of “online games” under the Online Gaming Rules.

Most substantive provisions of the Online Gaming Rules are applicable to permissible online real-money games, and not to other online games. However, the Central Government has the power to make any online games subject to the obligations under the Online Gaming Rules, as applicable to online real-money games, in certain cases. Such obligations include:

• to not offer any online game which is not verified by a self-regulatory body (SRB) (meaning the online game will need to be examined and verified by an SRB); and
• to not put up any information in the nature of an advertisement, surrogate advertisement or promotion of an online game that is not a permissible online game or of an online gaming intermediary offering such an online game.

However, SRBs under the Online Gaming Rules have not yet been formed, and therefore the Online Gaming Rules are not fully operational, as they will come into effect only after the expiry of three months from the date on which at least three SRBs have been designated by the MeitY.

The grounds on which the above provisions can be invoked vis-à-vis online games are those affecting:

• the sovereignty and integrity of India;
• security of the State;
• friendly relations with foreign States;
• public order; or
• prevention of user harm.

User harm has been defined under the Online Gaming Rules to mean any effect which is detrimental to a user or child.

On a separate note, there have been instances where the government of India has banned certain video games (such as BGMI and Free Fire) in India, on the grounds of (inter alia) security concerns. However, both the aforementioned games made a comeback in 2023, with certain restrictions, such as age-gating, gameplay hour limit, daily player spending limit, etc. In fact, BGMI now has a playable avatar of famous film actor Ranveer Singh, and Free Fire has a playable avatar of the cricket legend MS Dhoni.

This interesting intersection of gaming and media is yet another example of sports becoming more mainstream, especially with the monetisation of personality rights (such as likenesses and caricatures of celebrities) and streaming rights, as a fan following clearly exists for watching players compete in esports events.

Looking Forward

With ongoing focus by the public and private sectors, India will see sports as an industry continue to grow. Opportunities exist for investments, infrastructure development, player training and counselling, sports education and exploitation of various rights (ie, gamification, merchandise, sponsorship, personality, etc). One should expect increased focus on governance in sports (especially concerning sports bodies) and on sustainability measures for promoting sports in an environmentally friendly way. In addition, support from corporates and the social sector should be expected (ie, supporting the growth of sports, financially and otherwise – including mentoring). This is an interesting time for sports in India as the sector blossoms.