The Political Economy of Football V2

Premier League football teams could be banned from accepting sponsorship from gambling companies without a UK licence, as ministers look to crack down on black-market betting. Culture secretary Lisa Nandy on Monday said it was “not right that 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 plans, which will be put out to consultation in the spring, are intended to reduce harm from gambling and “eliminate unfair competition” for companies regulated by the Gambling Commission, according to the government. Several teams in the English football leagues, including the top division, have sponsorship arrangements with unlicensed gambling operators. These partnerships are not prohibited at present, so long as UK customers cannot access the illicit platforms. But the Department for Culture, Media and Sport said ministers were “deeply concerned” that...

Italy has approved a blanket ban on gambling advertising from next January. The Italian Government will lobby for a similar ban across the European Union: Gambling ads banned The ban will apply to all gambling-related products and services across all media platforms – including television, websites and radio – and sports clubs will also be prohibited from carrying sponsors from the industry. Italian club soccer’s top flight, Serie A expressed 'extreme worry' on Tuesday with regard to the new ban. The league said in a statement that the new rules would create disparity with other European countries and would bring ‘competitive disadvantages to Italian [soccer] clubs, diverting abroad advertising budgets aimed at [Italian] teams’. More than half of the clubs in Serie A have sponsorship deals in place with firms from the sector.

Football has become increasingly reliant on income from betting companies. They account for some forty per cent of perimeter advertising and half of shirt sponsorships, amounting to some £50m a year in total. The growth of this relationship has in part been driven by the growth of online gambling. Betting on matches is also very important in Asia where Premier League games are seen as free of any form of fixing. However, there are risks in this relationship. The gambling industry has come under criticism for failing to do enough to deal with the problem of addiction. It would claim that it has taken measures and, in any case, the vast majority of those who bet just enjoy the occasional flutter. However, the Labour Party has pledged to end betting advertising in football which would have considerable financial implications, although they might allow a transition period (and the legislation would take time to pass). There is an interesting review of these issues here: The odd re...