In the Premier League, eight clubs currently have betting companies as their primary shirt sponsors, with Everton (Stake) and West Ham (Betway) securing the most substantial deals at £10 million each season. However, a proposed plan could soon see gambling companies relegated to sleeve sponsorships, allowing the government to avoid passing legislation that would outlaw all gambling advertising. This move aims to strike a balance between commercial interests and responsible gambling practices. While the ban could potentially impact the value of shirt sponsorship deals for non-elite clubs, the transition to sleeve sponsorships presents an opportunity for greater diversification in sponsorship sources.
Transitioning to Sleeve Sponsorships:
The Premier League shareholders are expected to approve the plan to allow gambling companies to serve as sleeve sponsors. This compromise allows the government to circumvent a complete ban on gambling advertising while gradually reducing its prominence on club shirts. The proposed timeline grants clubs three years to renegotiate contracts with non-betting sponsors before the ban takes effect at the beginning of the 2026-27 season. By implementing sleeve sponsorships, the Premier League aims to strike a balance between financial considerations and the need to address public concerns regarding the impact of gambling advertising.
Financial Implications for Clubs:
The ban on gambling shirt sponsorships could have significant financial implications for Premier League clubs, particularly those outside the top six. Betting companies often offer double the financial value compared to non-gambling sponsors. Christian Purslow, Aston Villa’s chief executive, emphasized the commercial reality faced by teams outside the elite, highlighting the financial allure that gambling sponsors provide. The transition to sleeve sponsorships may require clubs to explore alternative revenue streams and seek non-gambling sponsors to compensate for potential financial losses.
Impact on the Market:
If gambling companies are eliminated from the shirt sponsorship market, the value of deals for clubs outside the elite could be further reduced. This presents a challenge for clubs to navigate the changing landscape and attract sponsors from different industries. Notably, Newcastle United switched from Wonga to Fun888 in 2017, securing a significantly higher annual sum. However, the team is reportedly planning to sever ties with the gaming provider this summer in favor of a Middle Eastern sponsor, indicating a potential shift in sponsorship dynamics.
Changing Trends and Considerations:
Research conducted by Caytoo reveals that front-of-shirt (FoS) betting sponsorships experienced a “mini comeback” in August 2022 after a temporary absence. Despite the Premier League’s contemplation of a ban, gambling sponsorships witnessed the third-highest increase among England’s 226 professional football, cricket, and rugby teams. This trend highlights the complex nature of the sponsorship landscape and the ongoing debate surrounding the balance between commercial interests and responsible gambling.
The Premier League’s consideration of a ban on gambling shirt sponsorships and the potential transition to sleeve sponsorships marks a pivotal moment in the evolution of sponsorship in football. While the ban aims to address concerns regarding the prominence of gambling advertising, it presents financial challenges for clubs, especially those outside the top six. Adapting to the changing landscape requires clubs to diversify their sponsorship portfolio and seek non-gambling sponsors to maintain revenue streams. The proposed plan reflects a delicate balance between commercial interests and responsible gambling practices, emphasizing the need for ongoing discussions and industry-wide collaboration to shape the future of sponsorship in football.