23 Sep 2021
Posted in Sport
Betting shirt sponsorship ban to represent £60m hole in Premier League club finances, says GlobalData
Following the news that the UK Government is set to impose a blanket ban on betting shirt sponsorships as part of its review of the 2005 Gambling Act, forcing nine out of 20 Premier League clubs to find a new shirt sponsor;
Liam Fox, Sport Analyst at GlobalData, a leading data and analytics company, offers his view:
“The combined value of betting front-of-shirt sponsorship deals in the Premier League stands at *£57.64m, while another £1.75m is spent by betting brands on sleeve sponsorship deals. Premier League clubs will, therefore, lose out on nearly £60m as a result of the ban.
“There has been a saturation of betting shirt sponsorship deals in the Premier League for the past five seasons or so now. This is because sponsorship for betting operators is unique in that it enables them to position themselves effectively in front of millions of sports fans who have direct access to their product for use there and then.
“These deals have been concentrated in mid-lower table teams because clubs at this level are unable to attract the same high-value blue chip sponsors that teams at the summit of the table can. However, for betting operators, the forefront of their sponsorship considerations is brand exposure and these clubs still appear just as regularly on broadcast feeds as the bigger clubs, thus act as an effective mechanism to increase sports betting revenues from its captive fan base, at a far lower cost than putting their branding on a shirt of one of the ‘Big Six’.
“What this has meant is that mid-lower Premier League clubs have become increasingly reliant on the industry to help limit the financial disparity between themselves and those clubs at the summit of the table. Therefore, the ban will likely widen this gap further, as betting brands have been willing to sponsor at over-inflated prices, leaving clubs with betting sponsors likely facing reduced fees for their shirt rights.”
*Data taken from GlobalData’s report: Business of the English Premier League 2021-22 – Property Profile, Sponsorship and Media Landscape