Premier League football clubs face an £80 million revenue shortfall as gambling firms withdraw from front-of-shirt sponsorship deals ahead of the 2026-27 season, The Guardian has reported.
The voluntary ban, set to come into force at the end of this Premier League season, was agreed in 2023 by clubs in consultation with the UK government. It will seek to reduce gambling advertising within the sport.
According to the investigation, nine Premier League clubs have yet to finalise new front-of-shirt sponsorship deals ahead of next season. Meanwhile, 12 clubs in total remain unsigned as the new season approaches.
But some deals already signed suggest that sponsorship valuations have dropped sharply. For example, Bournemouth and Brentford have shifted existing stadium or training partners to front-of-shirt sponsors, but at substantially reduced fees.
Notably, Everton has opted to keep Stake, its current front-of-shirt sponsor, as sleeve sponsor, despite the operator’s ban from the UK market last year.
Stake came under scrutiny last year as the platform lost access to the UK market following action linked to its white-label arrangements by the Gambling Commission.
Several clubs have reportedly received offers that amount to around half the previous value associated with gambling sponsorships.
“Nearly everyone is losing money,” a senior club executive told The Guardian regarding ongoing negotiations.
“Outside the big six, shirt sponsorship offers have dropped by around 50% from a range of between £8m and £12m a season. There may be some exceptions but it is a very difficult market. And with some clubs opting to switch sleeve or training kit partners to front-of-shirt, there is a knock-on effect for those deals too.”
Blanket ban on unlicensed gambling sponsorships
A proposed blanket ban on unlicensed gambling sponsorships in football further threatens the sport’s financing, as the UK’s Department of Culture, Media and Sport (DCMS) launched a consultation in February.
UK Culture Secretary Lisa Nandy said: “It’s not right unlicensed gambling operators can sponsor some of our biggest football clubs, raising their profile and potentially drawing fans towards sites that don’t meet our regulatory standards.”
The move will seek to stamp out money laundering practices through offshore or unlicensed operations.
The timeline for this ban is unclear, but Melanie Ellis, partner at Northridge Law, recently told iGB that despite changes to legislation potentially being quite lengthy, she expected “something [could be] tabled before the summer”.
“I anticipate the [two parties] will want to implement this [ban] within a reasonably short timeframe, but my view is at least 18 months will be needed to complete the consultation process and have the necessary legislation approved and brought into force,” she added.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
Original article: https://igamingbusiness.com/marketing-affiliates/premier-league-clubs-brace-for-80m-shortfall-in-shirt-sponsorships/
