Hockey India League returns, franchises gear up for 'exciting challenge', 'long term'

There is an essential truth in the Hockey India League – as true in 2024 as it was in 2013 – in that high-quality domestic hockey competition is essential to the overall development of the sport in the country. When it was active in its first avatar (men's league only) for five years, Indian hockey benefited immensely, improving their standards on and off the field and setting off a series of events that culminated in the men's team going back to back earned. Olympic medals.

If it was so good, why was it canned in the first place? Well, running a league comes with high costs and the first time out, both the franchise owners and Hockey India failed to make the league sustainable – problems included rising costs and calendar problems (due to the introduction of the Pro League). Having a solid national team program ensured that India did not lose much at the international level, but the emerging talent, especially the women players, missed the benefits of playing in a world-class domestic competition.

So it was important to restart it. But have the financial problems they faced been resolved? Why should an investor get involved in this second avatar of the competition? Can they turn it into a sustainable business? ESPN spoke to HIL owners to understand:

What is the motivation to invest?

For JSW Sports, owner of a men's and women's team (Soorma Hockey Club) in HIL, the motivation was simple: to develop the sport, especially in Punjab and Haryana. And they have the experience of running franchise teams in various sports to back them up.

“Many decisions we have made, in terms of team signings, are often viewed from two major lenses,” said Divyanshu Singh, the COO of JSW Sports. “One lens is always the development of the sport in the country. Then there are decisions that are made only through commercial lenses. We have owned Bengaluru FC for over a decade now and through the club we are investing in the grassroots and we are the only academy in the country to be accredited by AFC and AIFF with five stars. We then aim to develop football through that channel.”

“It's a similar approach for hockey because we are so deeply invested in Olympic sports. In the case of hockey, it ticks both boxes: the big focus is on development. Particularly in Punjab and Haryana, very important and strategic areas for the development of hockey. In the case of Punjab, 80-90% of the talent in the men's team comes from there and 80-90% of the talent in the women's team comes from Haryana.”

Soorma will represent Punjab in the men's competition and Haryana in the women's competition. According to Singh, the group is in for a long wait; they 'want to be active' in the off-season, with the main aim of opening a residential academy in Chandigarh, while also starting several other grassroots activities, including coach training programs. They also want to use hockey as an instrument to tackle larger social problems. “We want to develop not only as a sports brand, but also as a lifestyle, cultural and social brand,” said Singh.

Indian tennis legend Mahesh Bhupathi, the CEO of SG Sports and Entertainment, which also owns two teams in the league, is not concerned about the issues that plagued the league in its previous run. What is crucial for him is that the competition successfully gets through the first two seasons. “Indian sports have come a long way in the last five years and are growing every year. We are very excited about hockey because of its recent success,” he said.

Meanwhile, like JSW, Shrachi Sports also owns two teams (from Kolkata) in the Hockey India League. For them, investing in hockey teams was a 'brave' decision. “Sports has been a recent industry in India. Cricket over the years has shown us that sports can be an economy through IPL and other asset monetization,” said Rahul Todi, MD, Shrachi Group.

From Shrachi's point of view, it is a good time to invest in hockey as India has been consistently performing at the international level. They are willing to wait for the returns and are confident that Hockey India will deliver results after learning the lessons from 2013-2017.

How long are they willing to wait for returns?

JSW maintains that its vision is long-term and is therefore prepared to wait a little longer for returns.

“The IPL teams took seven to eight years to break even. The non-cricket teams take much longer. Of course, we are in for the long term. To give you some context, with regard to Pro Kabaddi, we are managed to break even. In five years we are looking at a time cycle of seven to eight years. A lot depends on how the whole central sponsorship and media rights revenue is divided between all the teams because it is the biggest contributor. to the sources of income,” says Singh said.

For Todi, that window is slightly smaller. “There is a gestation period of two to three years from team ownership,” he said. “The commercial rights have been finalized, we don't have the figures yet, but I assume it will be a good figure. That said, often the gestation or difficulty comes because it is hockey. It takes a lot of time to play cricket and IPL can do a deal for ten years. Hockey India is also doing a multi-year deal. It is also a good sign, it gives us confidence as co-investors. I think from the perspective of the league we will definitely make a loss , We hope to break even, but it will require a lot of effort from all stakeholders, including the Indian economy.”

The rights he is referring to are that Hockey India has signed a three-year broadcast deal with Doordarshan and Sony Sports, while Hero MotoCorp will be the title sponsor of the league for the next three years.

Bhupathi is also ready to settle for the long haul. “Your assumptions and my assumptions will never match. We own a team, it's an asset, we'll break even if we have to break even,” he said. “From now on, our focus is on the fact that the next 24 months are crucial. To make sure we do a lot of the right things. To make sure that in 2027 everyone is looking forward to it. The IPL is literally a festival and there is an opportunity for another sport to also gain traction at that level.”

What is common is the belief that the federation has learned lessons from the failure of HIL 1.

“I am sure Hockey India knows the mistake they made last time and will not repeat it,” Bhupati said. “As a group of owners, I think they are very involved in discussing what is going on with us. We are all aware that it will take a season or two to build the property. We are all committed to do that.”

“Hockey India has learned a lot from previous experiences,” Todi said. “A lot of factors were taken into account early on to keep costs down. As you can see in the format, one venue for men, one for women. Number two, the salary caps for players were also kept at a reasonable level. Hockey India League has been preparing for this for over a year, I think they are confident that they will get the support they deserve.”

What is the main reason for their optimism?

While financial expectations may vary, all owners are on the same page when it comes to making the league a success with a newer generation of sports consumers, with an emphasis on digital penetration.

Todi, for example, is optimistic that the ever-expanding digital landscape will propel the competition to success. “The sports ecosystem is growing, even globally we are seeing sports entertainment or original sports production, with Netflix and Amazon Prime focusing on that in a big way.”

“I'm just comparing the period 2013-2017 to now. The world has changed. India's digital penetration has increased. More and more people are using their phones for entertainment these days. I think all these factors will play a role in ensuring that it will be a long-term success,” he said.

JSW's Singh is also optimistic and emphasizes the need to expand the sport to younger generations. “The exciting challenge for a sport like hockey is that it has about 70 million fans in India, out of the 695 million sports fans that exist as per the Deloitte Google report,” he said. “What is important is to increase the popularity of Generation Z. The big fans of hockey are, I would say, the older generation. Moreover, hockey is not so much an urban phenomenon. Of course it is popular in our home states.” of Punjab and Haryana, but if you look at the rest of the country, its popularity largely stems from rural and semi-urban India,” Singh said.

“That's fine too because a larger majority of sports fans in India come from those categories. From a long-term perspective for the growth of the sport, it is very important that it appeals to Gen Z and what works in favor of the sport.” hockey is that India is doing well. Any sport that needs to grow commercially is essential for India to get it right.”