The gambling sponsorship ban is reminiscent of 2003 when the sports industry lost another generous benefactor in the tobacco industry. so where else can it potentially turn?

The likelihood that gambling firms will be banned from appearing on the front of sports shirts from the start of the 2023 season is a major concern for all rights holders in sport – not just those directly affected (currently around 20 football and cricket teams).

The government’s review could ultimately lead to a ban on all forms of gambling advertising in sport and around 35 teams in the top two football divisions alone have betting sponsors, with many more across sports such as cricket, rugby, horse racing and darts. 

However, even those without a gambling partner are also affected. Everyone will suddenly be faced with increasing competition for sponsors from all the rights holders who’ll be looking to replace their gambling partners.

Everyone will be fishing in a smaller pond.

The most important question for affected rights holders in light of the gambling sponsorship ban was summed up by the EFL’s chairman Rick Parry: “If not betting, which is the market we should go to?”

Some clues as to an answer can be found through our biennial analysis of the most prevalent sectors sponsoring football, rugby, and cricket teams in England such as:

• IT Services/Software: the sector – notably TeamViewer’s £235 million deal with Manchester United – has seen the biggest increase in the number of main sponsorships which is a reflection of how the coronavirus pandemic has accelerated the shift to a more digital world. Interestingly the growth was driven by a 600% rise in deals with women’s sports teams.
• Construction & Engineering: despite being the most prevalent main sponsor the sector tends to be overlooked by larger rights holders (those most affected by the ban). In addition, the housing boom is back on track as post-lockdown saw side-lined projects restart, along with funding and 80% of jobs lost due to Covid recovered. By definition these companies play a major role in local communities – a big tick for both sides.
• Fintech: while finance is the third most pervasive sector in sponsorship, its digital element, fintech, is almost entirely absent. Very surprising considering the UK fintech sector is the world’s second biggest by investment, and the landscape is becoming increasingly competitive across challenger banks, robo-advisors, lenders, money transfer and payment firms. London alone has over 3000 fintechs.

Gambling sponsorship ban: a time to re-connect with fans?

This major development in the industry gives football clubs in particular an opportunity to re-explore sectors with a historical association to the sport and re-connect with fans by looking for sponsors which have more of an authentic fit with people’s daily lives.

Our analysis of how the front of shirt sponsors of Premier League clubs have changed over the last 20 years shows an increasing disconnect with fans’ lives. Back then, most of the sponsors were household names across consumer electronics, footwear and your mobile phone bills.

The average person on the street probably knew what the business was of at least 80% of the sponsors but it’s doubtful this is the case today with the likes of Standard Chartered, FBS, AIA, TeamViewer, W88, SBOTOP and the host of Asian betting brands.

There are rich seams to mine beyond the usual suspects: where are the FMCG brands, retailers, consumer electronics, clothing manufacturers? Even alcohol brands can be replaced by the explosion of the non-alcoholic industry. Amazingly, not one of the 221 clubs covered in the research has a soft drink brand as a front of shirt partner – an increasingly diverse (moving way beyond sugary fizzy drinks) yet highly competitive sector.

At the least, can someone try and get Pizza Hut again?!