The Premier League is set to introduce a ban on front-of-shirt gambling sponsorships at the start of the 2026/27 season.
This means that clubs will only have one more full season to gain revenue from sponsoring gambling partners for front-of-shirt agreements until the ban takes effect, with potential to have huge ramifications for clubs’ future revenues.
The decision came in the midst of vocal lobbying regarding football’s close and well-established relationship with gambling, which came to the fore in April 2023 with the release of the UK Gambling White Paper to address these concerns.
In a bid to avoid government intervention, the Premier League proposed its own regulations regarding gambling sponsorship with the front-of-shirt ban, but still allowed for betting companies to be sponsored on shirt sleeves.
The reason why this incoming ban will have a significant impact on Premier League clubs’ future revenue is due to the amount of current teams that have a front-of-shirt gambling sponsor.
Recent research from Investigate Europe, that was shared by The Guardian, revealed that 11 Premier League clubs have a front-of-shirt gambling sponsor, more than any other European top five league; La Liga, Bundesliga, Serie A and Ligue 1.
While Spain’s La Liga and Italy’s Serie A have complete bans across gambling sponsorship and marketing, the figure still demonstrates an almost dependence on English clubs when it comes to additional revenue from the betting and gaming sector.
Gambling companies often payout larger sums of money to football clubs than other companies from different industries. The research found that £104m was spent on front-of-shirt sponsorships this season.
This key source of revenue for smaller Premier League clubs in particular, such as Southampton FC’s deal with Rollbit or AFC Bournemouth’s sponsorship with BJ88, are vital in order to remain financially competitive and remain compliant with the league’s Profit & Sustainability Rules (PSR).
Naturally, the front-of-shirt ban may entail that gambling operators will begin to payout less to clubs due to the shrinkage in exposure on club shirts.
Global appeal of the league is attractive to operators
The incoming ban may also prove to be difficult for clubs promoted from the English Football League’s (EFL) Championship to the Premier League.
The EFL has in place a lucrative title sponsorship with Sky Bet that supports the 72 lower league clubs. Teams in the EFL Championship also have front-of-shirt deals in place with gambling companies, which will no doubt cause headaches for executive teams to renegotiate if their club were to be promoted to the top-flight.
Not only this, but the Premier League’s ban could also have future ramifications for ambitious EFL Championship clubs negotiating gambling front-of-shirt deals, with one eye on the rule.
It appears the Premier League will commit to this new rule but for how long remains to be seen. Examples out of Italy may prove to be short lived, as the widespread ban on sports gambling sponsorship and marketing could be set to end after discussions surrounding the ban intensify.
UK gambling operators may opt to go via the ‘infotainment’ route that was seen in Italy, where a betting operators entertainment or social subsidiary will sponsor the front-of-shirt to circumvent the rule. An example of this would be Inter Milan’s front-of-shirt sponsorship with Betsson Sport.
However football clubs and gambling operators preparing for the Premier League ban will rely on smaller-focused deals such as sleeve sponsorships, or infotainment deals.
These deals will most likely not be as valuable as front-of-shirt deals though, and with increasing pressures from PSR and a football league that is becoming increasingly more competitive, Premier League clubs will no doubt have to venture into different sectors to recoup revenue.
With clubs in the league required to file no more than £105m in losses over a three-year period, PSR has already been the result of points deductions for both Everton and Nottingham Forest, a reminder that penalties will come if failure to meet regulations.
Hefty points deductions could ultimately spell regulation for clubs, which in recent years has proved to be difficult to maintain when teams receive promotion to the top-flight league.
The financial gap between Premier League and EFL Championship clubs has only widened in recent years, proven by the fact that all three promoted clubs last season – Luton Town, Burnley FC and Sheffield United – were all subsequently relegated back down to the Championship.
While a front-of-shirt gambling sponsorship is viable in the EFL Championship, a club will no doubt receive less from an operator as a lower league club and a club intends on an immediate promotion back, one-year deals will be more common, leaving little room for future financial security.
What takes the crown if gambling falls? Crypto?
With gambling’s front-of-shirt sponsorship exit on the horizon, Premier League club boardrooms will now have to look for the next burgeoning industry that will provide value and additional revenue.
The cryptocurrency sector is currently experiencing a new wave of momentum backed by rising players, regulatory support and investment that could be lucrative to many clubs.
Crypto already has an established relationship with football. Crypto.com is a title partner of the UEFA Champions League, BlockDAG signed two agreements last year with Borussia Dortmund and Inter Milan, and clubs like Manchester City have shirt sleeve sponsorships with OKX.
However, much like the gambling industry, the crypto sector comes with regulatory scrutiny and controversial public scrutiny. Still a largely unregulated sector in the UK, crypto is a volatile market that has already experienced two significant global collapses in the past decade.
The crypto sector will need to gain the support and trust of Premier League clubs first before it can become an established commercial player.
