According to the findings, eleven clubs in the English league currently have betting companies as their main sponsors. Clubs such as AFC Bournemouth, Fulham, and Wolverhampton are among the most exposed, with contracts that significantly exceed fair market values.
Bournemouth, for example, has a deal with brand BJ88 worth £6.1 million per year, which is 49% above the benchmark value.
Artificially inflated market
The study reveals that betting companies have been sustaining the Premier League sponsorship market, paying considerably more than brands from other sectors would be willing to offer.
A marketing executive interviewed by the publication reported that the highest offer received from a non-gambling brand was less than half of what a betting company had offered.
With the departure of these sponsors, clubs will face a more competitive market, where it will be difficult to find partners capable of maintaining the same revenue levels. This is expected to force a recalibration in the market value of sponsorships, especially affecting clubs outside the so-called “Big Six.”
Unequal impact and race for alternatives
The forecast is that smaller clubs will be the hardest hit, which may further widen the financial gap between large and small teams in the league.
The study estimates that, on average, clubs currently partnered with betting companies will lose 38% of their sponsorship value once the measure takes effect.
As an alternative, clubs may look to capitalize on shirt sleeve space, which will not be affected by the new rule. Sleeve sponsorships currently account for around 39% of the value of front-of-shirt deals.
If betting companies shift their focus to this position and maintain their high levels of investment, clubs could still recover part of the losses.
Opportunity for new brands
Despite the financial impact, the exit of betting companies opens the door for new brands to enter the Premier League sponsorship scene.
With less competition and a drop in prices, companies with more modest budgets may be able to secure deals with high global visibility at more affordable rates.
According to analysts, this is a “buyer’s market,” in which brands that remain firm in negotiations can secure high-impact advertising placements at a cost well below the historical average.
Source: GMB
