Would You Bet Your Shirt On it?- Iain Taker

Football clubs are firmly-established as international brands; many are recognisable from Manchester to Macau. As part of that national and international appeal, clubs place a premium on the opportunity to sponsor the match-day shirt. The latest deals in the Premiership show that the most successful teams seek in excess of £20m per season for this opportunity. 

Seven Premier League football clubs are currently sponsored by betting and gaming companies, a stark contrast to league’s the inaugural season, when there was not a single betting or gaming sponsor. In fact, there were none until 888.com’s sponsorship of Middlesbrough FC in the 2004/5 season.

A significant reason behind the increased presence of betting companies is the greater use of internet and mobile betting that appeals directly to the target market of professional football, which is still predominately men aged between 18 and 35. 

It is clear that the digital age has had a strong influence upon the appeal of football; none of the current sponsors are the most well-known, established betting shop-focussed companies such as Ladbrokes, Coral and William Hill. 

In-play betting, and the convenience of betting through mobiles, tablets and computers has helped to create a significant and expanding industry. Ladbrokes for example recently announced that the net revenues received through mobile device betting grew by 174% in 2011. It is the possibility of using football clubs as a fast and efficient way or establishing a brand in such a market that has been a decisive factor in the attraction of new entrants.

There is now a firm belief that shirt sponsorship can enable such a brand presence to be quickly established, particularly in industries where consumers are free to switch brands on convenience as shown by the significant success achieved by Emirates through its sponsorship at Arsenal and Chelsea. In order to advertise in the United Kingdom, a betting and gaming company must be licensed in Britain, the EEA or a white-list jurisdiction (e.g. Alderney, Antigua, Cyprus, Gibraltar, Isle of Man, Malta and Tasmania). 

It is not however just shirt sponsorships that have increased as the Premier League has continued to grow with many clubs now having an official betting partner such as the recent announcement that Paddy Power has become Manchester City’s UK betting partner until the end of the 2012/13 season. It is the apparent synergies between the industries that have driven such commercial partnerships with Ian Cafferky (Manchester City’s Chief Brand and Commercial Officer) saying “not only do Paddy Power and football go hand-in-hand but…we believe this partnership will provide real added value to our supporters.”  To highlight the global nature of the relationship between betting and football Manchester City had in August 2011 signed an agreement with Mansion to be their international betting partner.  

Sponsorship of a Premier League club not only develops the brand domestically, but also worldwide- the number of ‘fans’ of the Premier League is reportedly 1.5bn (with an annual worldwide television audience of 4.7bn). Once the numbers are examined, the decision to sponsor a club looks less of a gamble. Some international markets are currently unavailable to betting companies, most notably the United States. Should the betting legislation change the popularity of the Premier League in the United States may help to establish a first mover advantage.

Conclusion

While there are many possibilities for a sponsor in relation to the sponsorship of a Premier League club, there are also significant regulations that a betting and gaming sponsor must comply with including the Gambling Act 2005 and the Code for Socially Responsible Advertising. Under the existing rules, it is vital that the sponsor ensures any and all advertising is compliant and in particular not specifically targeted at minors. Any sponsorship agreement entered into after 1 September 2007 prohibits the betting and gaming sponsor’s logo being attached to commercial merchandising, which is designed for use by children for example a child’s version of the match day shirt.  

The strong appeals of sponsoring a football team are that the target market is in line with that of internet betting and gaming firms, easy and quick brand recognition and worldwide exposure. There is an increasing enjoyment, and indeed an acceptance, of betting and gaming and the high levels of advertising related to in-play betting around the televised football matches shows there is a strong belief that this market is a profitable one for the betting and gaming industry.

About Iain Taker:

Iain Taker is an associate at Kemp Little LLP, specialising in commercial and sports law, and a registered lawyer under the FA Football Agency Regulations.  

You can follow him on twitter @iaintaker or on LinkedIn 

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