How companies can revive sports

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March 29, 2005 06:59 IST

Some time ago, I had written about why it matters to our country that we succeed in sports and games. It strengthens the spirit of national pride and overcomes divisive forces of religion and language.

Some suggestions were made on how business principles could be applied to the management of sports. Since then, we have had a succession of sports ministers, at least some of whom were young enough to have taken some action.

But none of them succeeded in changing the status quo. Now I am encouraged by what a young minister, Praful Patel, is doing in civil aviation by applying the principles of business management, of which he obviously has some knowledge.

These actions by the civil aviation minister have been like a breath of fresh air and have emboldened me to revisit the question with regard to our performance in other areas, like sports.

The recent performance of 18-year-old Sania Mirza in the Dubai Open Tennis tournament and that of our cricket team in the present Indo-Pak series once again raises the question as to why we as a nation of over 1 billion people are unable to produce more outstanding sportspersons while small countries like Slovakia (3 million) and Holland (14 million) are able to do so.

Poverty is not an excuse because there are at least 100 million Indians who enjoy a standard of living (in purchasing parity terms) approaching that of Slovakia and the Netherlands.

So, instead of rediscovering reasons for our backwardness in sports, let us explore some of the steps that can be taken to identify, encourage, and support sportsmen and sportswomen.

The first step is to get the government out of sports administration and into playing a more supportive role by providing tax breaks, land for sports academies, and other facilities.

The government should stay out of sports administration because most of our elected representatives have very little understanding or appreciation of international sports.

And when politicians get on to sports bodies, the atmosphere quickly gets vitiated.

Today, successful sports organisations like the Board of Control for Cricket in India do not need subsidies from the government.

It is, therefore, possible for at least some sports organisations that are involved in nationally popular sports, to be self-reliant and even profitable if they perform well.

Such sports bodies should seek sponsorship and support from the private sector, just as the cricket authorities have done. The Delhi cricket association, for instance, has successfully sold corporate box seats in its new stadium at the Ferozshah Kotla.

This, along with the sale of in-stadium advertising rights, has helped finance almost the entire cost of the new 50,000-seat stadium that is being built.

The government can facilitate sponsoring such activities by the corporate sector, by giving 150 per cent tax deduction for expenses incurred by companies for sponsorships of sports, as is done for R&D.

This can be for a period of up to 10 years, by which time any sports body should be able to become viable. It will be a strong incentive for companies to finance sports bodies.

If the sports bodies do not show results in terms of achieving success, the tax concession can be withdrawn.

Leading companies should be encouraged to play a role. The Tatas have set up a football academy in Jamshedpur; Britannia has helped with a tennis academy, and MRF has set up an academy that has given India a battery of fast bowlers in cricket.

All these have made a difference, but we need much more. After all, India is yet to excel in either football or tennis.

One form of recognition that should be extended to sports persons is to create an academy for each important sport and allow sportsmen who have been members of national teams for five years or more to be members of the academy.

The academy should have a strong voice in the training of young sports people and in the governing body of that sport. Another way to improve standards is for private sector companies to invest in sports schools set up by outstanding sportsmen like Kapil Dev, Sunil Gavaskar, and others, for training younger players.

The government can allot land and provide infrastructure facilities for such ventures as they do for priority industries. David Beckham, the icon of English football, has recently set up a school to train young English players to become national players.

He is a millionaire in his own right and can afford to do so. Our sports people will need investment from the private sector.

Eventually, the successful among such schools can become or promote full-fledged sports clubs which will command their own brand equity.

Manchester United in the United Kingdom and Barcelona in Spain are football clubs that command a price that rich individuals like Abramovich, the Russian billionaire, are willing to pay. Such investments are based on the performance and profit-earning capacity of the club.

The same model is followed for baseball teams in the United States, where clubs are bought and sold just as companies are. Those with good managements get good players and do well, both in sports and in terms of returns on investment.

The availability of sports grounds and stadia is a key element in this. At present, most stadia and sports grounds that are not owned by private educational institutions are controlled by the government.

Many of them remain under-utilised, as is highly noticeable in the case of the many facilities created by the government for holding the Asian Games in 1982.

Indeed, some of them have become white elephants while a players' hostel has become a government office and an indoor stadium is used mostly for political rallies. Government-owned stadia should be handed over to professional sports bodies.

If an existing stadium is privatised, its private management will seek (a) to find sponsors for teams that will use the stadium, and (b) organise competitions to entertain the public and attract fee-paying spectators.

Sportsmen also need direct encouragement and support. A sportsman's career is about 10 years. At the end of that period, his performance will decline and then he will be at a loose end.

Corporate sponsors can ensure that he or she receives a lifetime pension and other benefits like housing, education allowance for his children, and health care for himself and dependent members of the family.

One of the problems faced by a young sportsperson is that of combining sports with academic studies. How can a Parthiv Patel pass his matriculation exam while playing as wicketkeeper for India?

Or Sania Mirza complete a university degree if she has to spend time practising and playing tennis internationally? Yet if these individuals do not complete their studies successfully, they may be in a tight squeeze after their sports career is over.

Universities will have to find a way of giving them credits for sports performance, and distance-learning should be encouraged for those who cannot pursue their studies in the normal term periods.

Successful models of action in India have shown that a creative partnership between private enterprise, professional bodies, and the government can create the desired results. It is time we tried to do this in the field of sports.

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