Premier League to End Betting Deals
It has been reported that the Premier League has decided to phase out front-of-shirt sponsorships from betting firms. However, sleeve sponsorships could stay as part of a comprise being negotiated with ministers. The government was planning to impose a ban on betting firms sponsoring Premier League shirts, but is now pursuing a voluntary agreement.
The Premier League is attempting to secure a compromise with the UK government on shirt sponsorship deals with gambling firms. ©Dom Le Roy/Pexels
Sleeve Sponsors Could Stay
The Premier League has revealed that it will phase out its shirt sponsorship deals with gambling operators. Sky News broke the story, but the Premier League has not officially commented on its new stance yet. The development comes as part of ongoing negotiations between top flight football and ministers at Whitehall in recent weeks.
As part of a compromise on the matter, the Premier League has proposed that it could retain shirt sleeve sponsorships. According to one Whitehall source, those sponsorships are less valuable as they are not as immediately visible as front-of-shirt sponsorships.
Continuing the use of sleeve sponsorships could help clubs to taper off their significant income from the gaming sector more gradually than an overarching ban. This would provide the Premier League with adequate time to address their finances and source new sponsorships and modes of income.
According to another unnamed insider, the phasing out of shirt sponsorship deals with gambling firms could take anywhere between three and five years. Last season, nine out of the twenty Premier League sides featured gambling firms on the front of players’ shirts. These sponsorships with clubs including Leeds, Newcastle and West Ham were estimated to be worth £63 million. Many more clubs have signed sleeve sponsorships with companies in the sector.
Terms are usually agreed for these sponsorships to run for a set number of seasons before expiring or coming up for renewal. Lucrative gambling sponsorships are not only limited to the top flight. Such sponsorships are prevalent all the way down the football pyramid.
However, campaigners are focused on tackling the practice in the Premier League first as these clubs are more easily able to attract lucrative sponsorships from other sectors. It is understood that Chris Philp, the DCMS minister responsible for gambling, is considering the Premier League’s proposal.
Government Rift
Last week it was reported that ministers had dropped plans to impose a ban on betting firms sponsoring the shirts of Premier League football teams, and were instead pursuing a voluntary agreement. If such an agreement is not reached, then official legislation could still be brought in.
Curbs on shirt sponsorship in football have long been campaigned for and are a key issue for the government, which is in the process of reviewing its gambling legislation. A review of the 2005 Gambling Act was launched in 2020, but has been severely hampered by the Covid-19 pandemic.
It is expected that a white paper detailing new legislation will be published imminently. The DCMS recently launched its pre-publication stage, with a one-week deadline for responses. Amongst the new rules that are likely to be introduced are maximum stake and deposit limits between £2 and £5 at online casinos and a ban on free bets and VIP schemes for gamblers that have racked up significant losses.
Ministers are reportedly in disagreement over the new legislation, which is just weeks away from its publication deadline. Ministers pushing for stricter rules are angry that plans for a compulsory levy to fund research on addiction, treatment and education, have been scrapped.
However, the Treasury has raised concerns over how its tax take would be impacted if the gambling sector’s annual £11 billion profits are impacted. The Department of Health and gambling minister Chris Philp are both in support of a levy. The rift is causing further delays to the legislation. Conservative MP Iain Duncan Smith has vowed that he will declare war on the government in legislation is watered down.
News that the legislation would be less strict than previously feared caused shares in a number of gambling operators to rise at the end of last week. Shares in 888 Holdings rose by 5.5 per cent last Thursday, while shares in Flutter gained 62p.
Campaigners Angry
A government compromise with the Premier League, if accepted, is likely to upset those who have campaigned for football reforms. The Premier League is the most watched domestic football tournament in the world, with a potential TV audience of 4.7 billion people. Fans have criticized top clubs that have chosen to retain their gambling partnerships for the new season.
Campaigners, including the All Party Parliamentary Group on Gambling Related Harm, have strongly backed a sponsorship ban. Others have also proposed that a similar ban should be extended to lower leagues. This suggestion has not been seriously considered by ministers, due to concerns over the financial impact it would have on smaller clubs.
A recent survey carried out by YouGov found that 1.4 million people in Britain are being harmed by gambling, while a further 1.5 million are at risk. However, the Premier League and the EFL have denied that there is evidence of a link between sponsorship and gambling.
20,000 Everton supporters showed their support for a ban, signing a petition against the club’s sponsorship deal with Stake.com. The multi-year deal is the most expensive in the club’s history. Premier League newcomers AFC Bournemouth have also signed a new two-year partnership with Dafabet.
Meanwhile, fans have praised clubs that have already taken steps towards distancing themselves from the gambling industry. In 2020, Swansea City replaced its front-of-shirt sponsorship deal with a gambling firm for a partnership with Swansea University. The Championship side’s decision has meant that the club’s youngest fans can now wear the same shirt as their favorite players.
Premier League club Crystal Palace also pleased fans by swapping its shirt deal with W88 for sponsorship from car insurance firm cinch. Speaking at the time, a spokesperson for Crystal Palace said that the landmark partnership marked progress at the club, both on and off the field.
