Sports management in India is at a very nascent stage but the industry is fast growing. The presentation includes a brief about the history and growth of sports management, sports governance, IPR and Competition law aspect of Sports and the ever important taxation issues.

1. PRESENTED BY:
RAHUL SINHA
MBA(LAW)
NMIMS

2. • Sports industry as one that consists of several different
segments, including sports tourism, sporting goods
(manufacturing and retail), sports apparel, amateur and
professional sports, recreational sports, high school and
college athletics, outdoor sports, sports businesses such as
sports marketing firms, the sport sponsorship industry
and sport governing bodies. (Definition by West Virginia
University)
Cricket World Cup, 2011, FIFA Under 17 Cup,
2017, World Chess Championship and Formula
1 Grand Prix 2011 onwards, India is becoming
a nation to look after.

4. The important stakeholders are:
• Ministry of Youth Affairs and Sports
(MYAS) and
• Sports Authority of India (SAI),
there are various stakeholders in pictures
such as autonomous bodies namely
• Indian Olympic Association (IOA),
• National Sports Federation (NSF),
• State Sports Association (SPF) and
• District Sports Association (DSA).

6.  Only two Sports Association (SA) giving out financial statement in public domain
and only one of them gets it audited by a reputed auditor.
 Only 1 of the 27 governing sports bodies have a former sports personality as their
president and only 9 of them have former or present players in the governing bodies.
 12 SAs have not made available any details about the tenures of presidents and
members.
 Only two SAs have any kind of plan for the future.
 Women constitute between 2% and 8% of SA governing bodies. Hockey India, with
34% female representation, is the exception.
 Ministry of Youth Affairs and Sports provides sports infrastructure and financial
assistance both directly and indirectly while bodies under Indian Olympic
Association is entrusted with responsibility of organizing matches and international
representation.

7.  Advocate Raghavendra Patnaik in an interview with Lawcotpus, a leading law
website said the con of working in sports law field is “you have to justify your
existence.
 In India, a sports lawyer typical day goes into contract negotiation and contract
drafting with various ‘person’. Aside from dealing with any future legal question,
he is relied upon to do drafting and agent work, wherein he does administrative
work of keeping up the player's portfolio, notice, sponsorship, and so on
 National Sports Development Bill, 2011 could be re drafted by a new 9 member
committee lead by Abhinav Bindra.

8.  Brand promoting utilizing sports groups and players is likewise enormous
business, and the financial wellbeing of many sports associations, clubs and even
individual competitors can rely upon publicizing and sponsorship income.
 One such example is the name of the famous football player “David Beckham,”
who has filed for trademark of his own name and earned millions of dollars
through sponsorship deals and endorsements.
 Howard Head's Patent No. 3,999,756 on the PRINCE "oversize" tennis racket.
 In India despite having a huge sport good manufacturing industry not much
Intellectual Property (IP) has generated.

9.  Jordan earned $100 million from Nike and other
partners last year by Forbes’ count, more than any
other retired or current athlete.
 Jordan has eight times the sales of the signature
shoes for the top active NBA star, LeBron James.

10.  Sporting celebrities can register themselves
as trademarks, not only their own name but
also nicknames, poses, slogans, signatures,
or other insignia for which they well
known. Usain Bolt’s “Lightening Bolt”
pose and his “to di world” slogan are
registered trademarks. Even without a
registered trademark, however, celebrity
athletes have “image (or personality) rights”
to prevent unauthorized use of their name,
likeness or other personal attributes.

11.  Can David Beckham copyright or patent his
‘bend move’ or can Vishwanathan Anand
copyright his special move?
 Though no sports move have been granted
copyright till date.
 The strongest argument for a subject matter
category for sports moves and athletic plays is
under choreographic work.
 The United States Second Circuit in the case
of Horgan v. MacMillian has held that
choreography is a form of copyrightable
subject matter.
 Not only would this stifle sports in the
country, it would lead to utter chaos in the
name of protection of one’s IP rights.

12.  All India Chess Federation for preventing its players from taking part in a
tournament outside its aegis,
 BCCI’s sanctions on the Indian Cricket League or denial of approval to Indian
Junior Player League in Dubai
 and the conduct of the World Series Hockey by the Indian Hockey Federation
allegedly fall within the ambit of the International Federation/National Sports
Federation trying to curb the advent of breakaway leagues through their rules

13.  Pure sporting activities like laying down the rules of the sport, defining the size and
weight of the ball and dimensions of the playing field are excluded from the ambit of
competition laws.
 But activities of the IF/NSF having substantial economic impact are within the
purview of the competition law.
 The regulatory power of the IF/NSF if used to gain commercial and financial
advantage would fall within this ambit provided the following conditions are
satisfied:
 That the agreements are not anti-competitive i.e. they do not attempt/cause appreciable
adverse effect on competition; and/or
 That they are not abusing their dominant position and are not imposing unfair or
discriminatory conditions

14.  CCI v/s BCCI
 Imposed a fine on the Board for Control of Cricket in India of INR 52.24 Crores for
abusing its dominant position in contravention of Section 4(2) (c) of the
Competition Act, 2002. The Commission in addition to imposition of fine had also
directed BCCI to cease and desist from any practice of denying market access to
potential competitors through inclusion of one-sided clauses in any agreement in
the future, deletion of certain clause in media agreements as well as usage of its
regulatory powers in the process of deciding matters relating to its commercial
functions.

15.  Sh. Dhanraj Pillay and Others vs M/S Hockey India
 The players, including former hockey captain Dhanraj Pillay, had approached the
CCI in 2011 alleging abuse of dominance by Hockey India, which had warned
players against participating in the WSH, terming it an “unsanctioned” event.
Allegedly, players who had signed up to play in various franchisees of the WSH –
which is organised by the rival Indian Hockey Federation (FIH) – were
deliberately not selected for the Indian national hockey team. In its order, the CCI
barred the two bodies from placing any restriction on players to play in sanctioned
or unsanctioned events

16.  Sport persons are the primary and most
important stakeholder in the industry.
 Direct tax implication on sportsperson
and Goods and Service Tax (GST)
impact on the sports goods
manufacturing industry.
 With GST implemented such questions
should not arise in the future

17.  Income-tax Act, 1961 provides that in case of sportsmen or artists participating in such
events or shows, all income accruing or arising or deemed to be accruing or arising,
received or deemed to be received in India is taxable in India.
 Sec 10(39): Any specified income, arising from any international sporting event held in
India, to the person or persons notified by the Central Government in the Official
Gazette, if such international sporting event— (a) is approved by the international body
regulating the international sport relating to such event; (b) has participation by more
than two countries; (c) is notified by the Central Government in the Official Gazette for
the purposes of this clause.
 Explanation. —For the purposes of this clause, "the specified income" means the income,
of the nature and to the extent, arising from the international sporting event, which the
Central Government may notify in this behalf.
 Such exceptions are generally granted when the event being held is of international
importance and being organized by an international recognized body. Recently such
exemptions were given to the World Cup organized by International Cricket Council
(ICC), The Commonwealth Games New Delhi 2010 and the F1 race event held in Noida
in later half of 2011

18.  Sports goods have been placed under 12%-28% tax slab rate highest of all.
 Live sports Club sport events like the Indian Premier League are set to be taxed
at 28%, thereby increasing the ticket prices. Other events by the recognized sports
governing bodies in India like the Board of Control for Cricket in India, Hockey
India, Badminton Association of India, etc will attract the tax slab of 18% on their
tickets.
 Essential sports, health and fitness goods such as skipping ropes, fitness spares,
shoes, and ankle weights, have all been classified as luxury goods, attracting a
28% tax. Even the humble sporting whistle has been classified as a musical
instrument and is taxed at 28%

19.  A service provider of training in recreational activities relating to sports was not
liable to pay service tax. Under the new GST, professional coaching and private
academies will attract a tax rate of 18%, which of course, will be borne by the
students ultimately.
 Tax on sponsorships are pegged at 18%.

20.  Sports Management industry is in very nascent stage and Indian scenario is not
good enough.
 No Sports law firm or sports management company feature in zero day of any
reputed institute.
 As a sports manager you have to deal with a lot of legal as well as personal
problems, hence understanding the IPR issues, Competition Issues becomes
relevant along with the taxation aspect.
 Once the management reaches in growth phase, the industry could be one of the
leading sector in GDP contribution.