FDI In Sports Sector— Procedures, Fees And Documents Required

100% FDI is allowed under Sports sectors through automatic route.

Many documents are required for FDI in the sports sector which are as follows:

• List of names, addresses, and identification proof of all foreign collaborators of the investor company/entity
• From both investor/investee entities- Certification of Incorporation and MoA
• Copy of joint venture agreement/ shareholders agreement/technology
• Copy of downstream intimation
• Copy of relevant past FIPB/SIA/RBI joint with the current proposal
• Copy of Downstream Intimation
• An affidavit to ensure all documents are relevant
• Valuation certification approved by a certified chartered accountant
• CS Certificate
• Declaration by the Authorized Representative of the Indian Company/LLP
• Pre and post-shareholding pattern in the Indian company
• Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation (if applicable)
• RBI approval on the amount of refund concerning the amount of the issue (if applicable)
• Valuation certificate
• Approval letter (if non-compliant with the guidelines – if applicable)
• Relevant RBI approvals for an issue of equity shares against funds payable to the foreign investor
• FIRC/ Debit statement
• Know Your Customer (KYC)

There are conditions tapping for the procedure of FDI approval which must be understood by investors.

Following are the key advantages for investors who invests in sports sector under FDI:

1. Opens Networking for business - Sports sector in India opens a variable of horizons to uplift the industry by generating revenue from domestic and international investment.
2. Country’s branding - International investment in the sports sector propel the country’s identity towards the global stadium particularly for sports goodwill of one’s country, let say hockey, which enhances tourists destinations worldwide.
3. Increasing Investment - The overall sports category income in India is anticipated to increase at a compound annual growth rate (CAGR 2022-2027) of 14.94%, according to a Statista analysis. This growth rate reflects both the growing interest in the sports sector and the growing popularity of sports. By 2027, the market volume is projected to grow significantly from its present level to US$17.36 million.

Following are the benefits of sports sector for investors in India:

1. Maximizing profit margins of sports sector - The fast rising income and value of the sports business is one of the main benefits of investing in sports. Sports are becoming more and more commercialized, which presents a lucrative potential for investors, thanks to the growth of major sports leagues and the extension of television rights.
2. Adding Flexibility to Your Investing Portfolio - The fact that sports investments are an alternative asset class is another significant advantage. Alternative asset classes, such as sports investments, are gaining appeal as a new investment possibility outside of the traditional and volatile markets.
3. Global Growth - As India prepares to host the FIFA world cup and plans to host time for the first time in 2034, the sport is bound to gain more fans and experience even more growth in the upcoming years. This makes now a great time to start investing in football to tap into the sport’s growing popularity and revenue.
4. Profitability - Currently, football is one of the most popular sports. Even while the market may not seem to be fully tapped right now, this only indicates how much opportunity to develop and thrive! Businesses who get a head start and invest in football today will also be well-positioned to profit from the sport's growing economic viability down the road.

FDI in the sports industry is a developing phenomena with a variety of goals. Although club ownership, TV rights, and merchandise sales provide significant financial benefits, these are not the only factors at play. Furthermore, foreign investment may support innovation and growth in the home sports business by bringing experience in sports science, technology, and fan interaction. New investment possibilities are also being created by the FDI that the esports and gaming industry is drawing. Lastly, some investors are driven by social responsibility or sustainability objectives, leveraging sports to address social concerns or encourage environmentally responsible behavior.

Several other factors to consider for investors while investing in medical industries are listed below:

• Before involving huge investments, applicants must be prerequisites to check the kind of companies the government allows them to invest in. Because investment in the stock market is volatile and may not recover your loss, leading to unwriggled investment which will not recover at the time of redemption of company loss.
• Additionally, before application applicants need to inspect and ensure that all the requisite documents are submitted online without discovering any omissions and incorrect information within the documents. FDI is largely inspired to bring investors forth along with certain advantages that benefit sectors.

Investors must also need to check eligibility criteria for buying investment in India in sectoral companies.