French sports organization experiences about a 60% revenue decline due to sponsorship prohibition
September 2024: Premier League Clubs Brace for Big Losses
Get ready, Premier League clubs, as a study from OLBG predicts a financial whammy! Almost 58% of these clubs are likely to suffer a cool £126.6 million (roughly $168 million) in losses following the upcoming voluntary ban on front-of-shirt gambling sponsorships, kicking off in the 2026-27 season.
According to experts, these clubs could lose up to 60% of their current shirt sponsorship income when the ban comes into play. Eleven Premier League teams boast gambling company sponsors, putting them in a bind when these deals vanish. The Sponsor's Premier League Fair Market Sponsorship Values report highlights that these departures may leave a considerable gap, particularly for clubs lower down on the commercial ladder.
Liverpool still dominates as the league's most financially attractive asset in the sponsorship sphere. Newcastle and Nottingham Forest received a boost due to European qualification, while West Ham slipped with lackluster results on the pitch.
Sean Connell, editor of The Sponsor, stated, "I've spoken with commercial directors, and their highest offer from a non-gambling brand was only half of what a gambling sponsor put on the table. That's a clear indication of the magnitude of the issue."
Connel further added, "The harsh reality is that gambling brands are currently propping up the Premier League sponsorship market. When those brands exit, the entire structure becomes vulnerable as clubs struggle to find sponsors willing to match those fees."
Competition to secure non-gambling sponsors is already fierce, and it's expected to intensify. Some clubs have already started eyeing emerging sectors like crypto and fintech to shore up the gap. Spending from crypto companies in sports climbed by 20% this past year, now totaling over £400 million (around $541 million).
Nottingham Forest sealed a deal with sports-focused crypto platform Kaiyun Sports, while Aston Villa made crypto casino and sportsbook operator Duelbits its official European betting partner during the 2022/23 season. However, these moves may not be enough to save the market.
The report also flags several clubs, including Manchester City, Manchester United, Arsenal, Newcastle, and Bournemouth, who have inflated front-of-shirt deals compared to fair market value benchmarks. Connell notes, "There's still time to turn it around," mentioning United's impressive global fanbase and "commercial legacy" that he calls "incredibly strong." However, he cautions that the gap between potential and performance is widening, and sponsors are finally taking notice.
The controversy surrounding the ban deepens when relegated clubs drop into the Championship, a league still sponsored by a betting firm. Recent amendments to the UK's Gambling Act add to the complexity of this already convoluted scenario.
- The voluntary ban on front-of-shirt gambling sponsorships, starting in the 2026-27 season, is predicted to cause significant financial losses for almost 58% of Premier League clubs, amounting to approximately £126.6 million.
- Eleven Premier League teams, which currently have gambling company sponsors, may struggle to find sponsors willing to match the fees they currently receive, due to the ban.
- As an alternative, some clubs are eyeing emerging sectors like crypto and fintech to shore up the gap left by the departing gambling sponsors.
- Sean Connell, editor of The Sponsor, warns that the gap between potential and performance is widening, and sponsors are taking notice, particularly for clubs like Manchester City, Manchester United, Arsenal, Newcastle, and Bournemouth, who have inflated front-of-shirt deals compared to fair market value benchmarks.
