Commercialization of sports

Introduction Of Sports Sector

With the ever-increasing commercialization of sports, big sports today have gone a far way from merely being a form of exercise and amateur sports to an industry. The sporting federations in order to acquire players, and pay for their ever-increasing salaries spend a huge amount of money. The advent of satellite television with dedicated sports channels has considerably increased the market for sports broadcasts. India, too, is no stranger to this phenomenon and the major sport undergoing such a commercial revolution is every sports.

Sport accounts for 3% of world trade. And it is more than a business, it is also a social and political activity, which has developed a rulebook to enhance competition rather than restrict it. A competitive sports league requires a significant degree of off-field cooperation and solidarity (i.e. equality of arms) between the teams for an interesting and exciting product to be made available to the public.

India is trying to develop as a global sourcing hub for sports products. Foreign brands have shown interest in the Indian market and are now major sponsors of sporting events. The government has allowed foreign companies to enter through various routes such as 51% FDI in single brand retailing and franchising and is evaluating the possibilities of reducing the FDI restrictions. Indian business houses are investing in this sector and the country will host Commonwealth Games and other sporting events in the near future.

In this context, this study provides an analysis of the market for sports articles in India emphasizing on the production structure, distribution, trade and consumption patterns. It will also look at the practice of sports in the country, existing facilities, fashion and branding, fair and promotional events, etc. in the light of exploring the potential market for Italian and other foreign companies in India. In depth interviews will conducted with all stakeholders including manufacturers, buying agents, distributors, government officials, sporting associations, among others.

History Of Sports Sector

India - known for its fanaticism for cricket and hockey; started its sports odyssey long back during the great Vedic Era of India. Initially, the development of sports (games) in India gathered momentum after its important role, in maintaining the physical health, was coined by the people of India. Hunting, swimming, boating, archery, horse riding, wrestling and fishing mark the stage of infancy of Indian Sports (Games). Then came the Martial Arts which was also a strong way of self defence apart from a vigorous physical exercise.

In India, sports (games) is seen as 'a way of realizing the body potential to its fullest'; also known as "Dehvada" in ancient India. The philosophical foundation of the sports (games) in India lies in the history of India dating back to Vedic Era in which the Atharva Veda said," Duty is in my right hand and the fruits of victory in my left". These words in the traditional mantra hold the same spirit as that of the Olympic oath that implies: ".......For the Honour of my Country and the Glory of Sport." The history of India also beckons of an interesting link between Greece (The Motherland of Sports in the world) and India which dates back to 975 B.C. when both the nations pioneered in the sports (games) like chariot racing and wrestling.

The golden history of sports in India is also evident in the immortal Indian epics like Ramayana, Mahabharata etc. Whereas during the period of Ramayana; hunting, archery, horse riding, swimming were the royal games; Mahabharata made a mark in the sports like dicing, gymnastics, wrestling, chess (Shatranj) and gulli danda. Puranas mention about the threatening game of rope fighting. The archeological excavations of Harappa and Mohanjodaro along with the religious manuscripts like Puranas and Vedas are the standing testimonials of this glorious history of Indian sports.

The historians believe that many sports (games) like hockey, archery, wrestling and chess originated in India, which are synonymous to strength and speed nowadays. In the late Vedic Era, besides sports; the Yoga and Meditation, the inevitable parts of the toughest "Yogashastra" made India, acquire the seat of spiritualism, all over the world. This dignified discipline of Indian Sports finds its place in Bhagwat Gita .

Today sports in India have achieved a zenith in terms of popularity and as a career option. Olympics, Commonwealth Games, Asian Games, SAF Games, Wimbledon and many other world sports tournaments see Indians as one of the most leading sports participants in the world. From Tendulkar, Paes, Bhupathi, Anand, Geet Sethi, Karthikeyan to Sania Mirza lead the present sports generation of India. Cricket, Hockey, Football, Weightlifting, Snooker, Kabaddi, Kho Kho and Archery are the sports of India that have been deep seated into an Indian psyche, whether of a sports person or a sports lover. Not only physical strength, power and satisfaction but also a strong alternative of recreation; sports in India have paved a long way towards the road of success and have made themselves a hallmark in the world of sports.

Introduction Of Planet__S

(Opening A Sporting Goods Store)

I am opening a store of sporting goods .the name of the store is planet__s. I am opening store in New Delhi rajouri garden market .It is one of the Indias largest store where consumer gets all types of sports goods and every type of wears. In this store consumer can search for any type of there requierement. Children can also search for the any type of shoes .I am opening store in partnership. There are two partners. Partner names are Parmeet singh and Nitish Arora following is the agreement between both the partners.

Objective Of The Partner

Both the partner seeks to provide and initiate the implementation of long term, and wants the firm to be ranked 1 in the Indian market.

Duration Of The Firm

At the time of entering into the partnership agreement we have decided to have a Partnership for a Fixed term.

Creation Of Partnership

A partnership is created on the basis of the agreement. The partnership agreement is created in the written form and all the essential element of a valid contract is present. The object of the partnership is lawful .

Procedure Of Creation Of Partnership

The registration of a firm may be affected at any time by filling an application in the form of a statement, giving the necessary information, with the registrars of the firm of the area. Sec. 57 empowers a State Government to appoint Registrar of Firm for the purpose of Partnership Act and define the areas within which they shall exercise their powers and perform their duties.

The application for registration of a firm shall be accompanied by the prescribed fee. It shall state:

(a)The name of the Firm: PLANET__S

(b)The place or principal place of business of the firm :RAJOURI GARDEN ,NEW DELHI

(c)The name of the other places where the firm carries on business:- SOUTH-EX ,NEW DELHI

(d)The date when each partner joined the firm :- DEC 08,2009

(e)The name in full and permanent addresses of the partner; duration of the firm:-DURATION IS FOR FIXED TERM.

a) PARMEET SINGH, 125 Pitampura, New Delhi

b) NITISH ARORA, F-11 Karolbagh, New Delhi

The statement shall be signed by all the partner or by their agents specially authorised in his behalf [Sec. 58(1)].It shall also be verified by them in the prescribed manner [Sec. 58(2)]. For restriction on the use of certain words in the name of the firm, refer to Sec. 58(3)

When the registrar is satisfied that the above provision have been duly complied with, he shall record an entry of the statement in the register of the Firm and file the statement. He shall then issue under his hand a certificate of registration

Profit & Loss Sharing Ratio

We both have decided to share both the profit and loss in the equal ratio.

Rights And Duties Of A Partner

The Rights Of A Partner:

  • Every partner has a right to take active part in the management and administration of the firm.

  • The books of accounts of the firm must be kept at the principal lace of business and every partner has a right to have access to the accounts of the firm and he can have a copy of accounts.

  • Every partner has a right to continue in partnership.

  • Every partner has right to retire according to agreement or consent of all partners.

  • very partner has a right to share profit and losses equally in the absence of partnership deed.

  • If a partner has given any loan or advance to the firm, he is entitled to interest on loan at 6 percent p.a.

  • Every partner has a right to prevent admission or retirement of a partner.

  • A partner is not liable for any activities in the firm before his admission.

  • Every partner has a right to sue for dissolution of the firm.

  • The partners have a right to do all such acts in the time of emergency which would protect the firm from losses.

  • Every partner has a right to be indemnified by the firm for the payment made or liabilities incurred by him in the ordinary course of conduct of the business.

  • The outgoing partner has a right to carry on similar business operations without the use of firm's name.

The Duties Of Partners:

  • Every partner is bound to carry on the business of the firm to greater advantage.

  • Every partner has a duty to work hard and conduct the business in the best and common interest of the firm.

  • A partner shall not carry on any business competing with firm's business.

  • Every partner is bound to keep and render proper books of accounts.

  • Every partner has a duty to contribute equally for the losses incurred by the business.

  • Every partner has a duty to attend diligently to his duties and render true accounts and information.

  • Every partner is bound to use the property of the firm exclusively for the partnership business.

  • No partner can transfer his interest in the firm except with the consent of all partners.

  • Every partner is bound to act honestly, faithfully and diligently for the conduct of the business.

Dissolution Of A Firm

The dissolution of the firm can be done by the two ways:-

  • Dissolution without the order of court

  • Dissolution by court

Dissolution Without The Order Of Court

  • With the consent of the partner.

  • In accordance with a contract between Parmeet and Nitish.

  • When there is expiry of the term for which the firm is constituted.

  • When one of the partner is dead

Dissolution By Court

  • When one of the partner become unsound mind, the court may dissolve the firm.

  • When one of the partner is guilty of misconduct and it is likely to affect prejudicially the carrying on of the business, then the court may dissolve the firm.

  • when one of the partner has in any way transferred the whole of his interest in the firm to the any other party or sold in the recovery of arrears of land revenue, the court made is all the firm

  • where the business of the firm cannot be carried on except at a loss , the court may dissolve the firm at the suit of a partner

Settlement Of Account

The mode of settlement of accounts between partners after the dissolution of a firm is determined by the partnership agreement. In the absence of any specific agreement between them in this regard provision of Secs.48, 49 and 55 apply.

  • Sale of goodwill:- in settling the accounts of the firm after dissolution ,the goodwill shall be included in the assets and it may be sold either separately or along with other property of firm.

  • Sharing of deficiency :- If the assets of the firm are insufficient to discharge the debts and liabilities of the firm. The partner shall bear deficiency in the equal ratio as it is mentioned in that partners are sharing there profit and losses equally. Thus losses, including deficiencies of capital, shall be paid.

    1. First out of profit

    2. Then out of capital

Bibliography

  • WWW. Google.com

  • Element of Mercantile Law Book by N.D Kapoor

  • Business studies book by Poonam Gandhi

  • Business studies book by C.B Gupta