The Intersection of Football and Gambling – Exploring the Relationship in Spanish Football
Uncover the fascinating connection between Spanish football and gambling, delving into the intricate relationship they share.
In recent years, legislation in various European Union countries has resulted in the banning of betting advertisements. This has had a negative financial impact on many football leagues, compelling them to reconsider their strategies and search for alternative revenue sources.
During the Covid-19 pandemic, Spain opted to ban gambling sponsorships despite crypto sports betting being legal in the country., On the other hand, the Premier League implemented specific restrictions on betting advertisements in 2023. Although football clubs are confronting significant financial concerns, the extent of the impact varies among them.
In this article, we will explore the relationship between betting companies and Spanish football clubs. We will also compare this situation with that of the Premier League and examine the repercussions of the ban on these professional associations.
Let’s begin!
Premier League Decides to Ban Gambling Sponsorships
To appease the UK government, the Premier League has decided to bite the hand that financially supported them for over two decades. During the summer of 2023, all 20 football clubs banned front-of-the-shirt sponsorship deals following a three-year phasing-out period.
The Big Step, a campaign aimed at ending all gambling advertising and sponsorship in football, welcomed the Premier League’s significant decision to ban gambling sponsorships voluntarily.
James Grimes, the person behind The Big Step, hailed this as a step in the right direction. He argued that gambling advertisements have an adverse impact on sports fans.
According to a press release by the Premier League, it called its decision an uneasy compromise. The teams will still feature gambling advertisements on the sleeves of the players’ shirts to generate revenue.
However, Grimes expressed his dissatisfaction with this decision, stating that both the government and football clubs need to comprehend the harms associated with gambling.
He argued that merely changing the location of the logos from the front to the side will not help achieve the agenda they are striving for.
At the time, 8 out of the 20 Premier League football clubs had betting company logos and adverts on their shirts, with a combined value of $60 million.
Tony Bloom, chairman and owner of Brighton, who had earned millions from betting sponsorships, voiced his support for the ban. However, he also acknowledged the financial constraints it might impose on football clubs, as gambling companies paid the most for front shirt advertisements.
The Relationship Between Spanish Football and Gambling
The Premier League is the top-tier English football league, while La Liga holds the record for success in Spain.
During the pandemic, La Liga clubs decided to ban gambling sponsorships. The league cited the need to support people suffering from gambling addiction as the reason behind their decision.
However, this move raised questions, especially during a time when the world was experiencing an economic lockdown.
Following the ban on gambling sponsorships in Spain, 22 clubs across the country’s two football leagues were left without a main shirt sponsor. This meant that the majority of the sports teams would face financial difficulties.
Javier Tebas, the president of La Liga, stated that the ban could result in more than 90 million euros in damages. He could not fathom how betting advertisement was considered a sin when gambling activities were completely legal in the country. Tebas also highlighted how the timing of the ban worsened the financial situation for football clubs.
Alberto Garzon, the minister of consumer affairs in Spain, stated that there had been an 11% increase in gambling among people aged 18 to 25 in the country over the past four years.
Garzon believes that the normalization of gambling through the relationship between football clubs and betting companies is negatively affecting the younger population.
The president of the online gambling association JDigital, Andrea Vota, criticized Garzon for providing inaccurate numbers. Vota argued that less than 0.5% of the country’s population suffered from a gambling addiction, and a ban based on that could lead to the collapse of a regulated industry.
Vota further stated that in 2019, the country collected 185.4 million euros in tax revenue from betting companies, and the gambling industry has created more than 84,000 jobs.
A ban on gambling sponsorships could have a detrimental impact on other industries in Spain, causing financial hardships for businesses that rely on such partnerships for revenue.
What Will Spanish Football Clubs Do Next?
After the ban on gambling sponsorships in Spain, many people are wondering what the future holds for Spanish football clubs. Well, the answer is not so simple. The Premier League has until 2026 to plan out its next move and seek new partners.
However, it is likely to experience a minor financial setback in the short run as clubs adjust to the absence of the inflated sums of money offered by betting companies. Fortunately, the league’s global appeal could help cushion the financial blow.
Due to the ban, football clubs will have to explore alternatives to betting companies and rethink their strategies in order to maintain financial stability. However, replacing a significant portion of their revenue could prove challenging.
Currently, the big three clubs in Spain have secured partnerships with Emirates, Spotify, and Plus500. However, many others are still struggling to cover their revenue losses. This situation has also affected the relationship between Spanish football clubs and cryptocurrencies.
In 2021 and 2022, some Spanish football clubs briefly switched from betting brands to crypto partnerships to maximize profits. However, they quickly abandoned those deals and decided to seek new partners.
Unlike the Premier League, which has a global reach, football leagues in Spain might face challenges in the future as they were heavily reliant on the easy and lucrative option of gambling sponsorships.
Another important point to note is that football clubs are exploiting loopholes in the law. The technology used by La Liga, for example, still allows viewers in the Far East to see betting adverts.
Final Thoughts
The relationship between Spanish football clubs and gambling companies has been rocky. Although it has helped generate millions of euros in tax revenue, the government decided to ban betting advertisements completely.
Spain is not the only country placing restrictions on betting adverts. The Premier League has also taken steps in that direction. However, the impact on the Spanish football leagues is much greater, as they have a more regional viewership.
Banning betting advertisements may not be the solution, especially for Spain, considering that it has made most gambling activities legal. Such a ban could harm the financial situation of many football clubs and potentially affect the future of sports in the country.