Big sports clubs generate millions of euros monthly, but it is important not to forget one of the most important sources of income for them: sponsorships. Among the big sponsors in the world of sports are the gambling companies, who inject a large amount of money into the clubs. They, in turn, use this money in manifold ways, such as signing new players or remodeling their stadium.
With more or less controversy depending on the case, the truth is that gambling companies have managed in many places to relaunch both professional and amateur sports. These companies devote a large part of their income to subsidizing many teams with juicy sponsorships, a phenomenon that cannot be ignored when assessing the state of today’s sport.
Professional sports, the big beneficiary
A large number of sports leagues, as well as their clubs, have seen gambling companies as great business partners. This commercial relationship is mutually beneficial, as the clubs, or their respective leagues, generate revenue, while the gambling companies find a platform to make themselves known to thousands of potential customers.
Gambling companies saw this opportunity and established themselves for several reasons. The first is that they had to make themselves known in countries where they did not have much of a tradition. The second is that they could achieve the sponsorships the clubs demanded. This saved many teams that needed large sponsors to continue with their professional activity and fight with clubs that earn more in concepts such as television, something that changes a lot from one country to another.
Just by looking at the jerseys and advertisements of soccer teams, we find a common ground: gambling companies have become essential to almost every club. In fact, according to UEFA, sports gambling companies account for 19 percent of the sponsorships that Europe’s top teams advertise on their jerseys. Soccer is the sport of reference, but we could also say the same about basketball and many others, such as tennis.
World’s trends
It is very common for American sports to have a connection with sports gambling companies since most of their leagues have such a commercial relationship. One of the last leagues to close this type of sponsorship was the NFL, which in April 2022 announced a deal closure with three gambling companies. This will give the league millions of dollars in profits.
In European soccer, clubs are also betting on this way of generating income. Various clubs in the German, English and Portuguese leagues have been signing commercial agreements with different gambling companies for years. In fact, in England, deals with gambling companies are hundreds of years old and they are highly regarded as part of the country’s popular culture. In 2020 there was an interesting case, as Brighton & Hove Albion was the only one of the 20 teams in the Premier League that did not have any signed agreements with gambling companies.
Meanwhile, in Spain, the phenomenon is more recent, but no less intense in terms of its importance. A few years ago, professional teams began to have problems finding sponsors capable of keeping pace with the prices of the shirts of big teams such as FC Barcelona and Real Madrid.
Sponsorships in amateur sports
All the above also had a major impact on very minor sports. Large gambling companies such as Betfair began to support the less followed disciplines, even giving media coverage to the broadcasts of their events that can be seen on these companies’ platforms. This has ensured that the generated profits not only stay with the big professional teams but also reach small teams or individual athletes who are far from the big financial gains of top-level soccer.
It is impossible not to properly assess the value of gambling companies in this sense, since they are entities that have made the world of sports grow significantly at all levels.
The problem
A large number of leagues have the facility to seek this type of commercial relationship, but some countries have placed restrictions on their sports leagues so that they cannot sustain them any longer.
One of the most resounding cases took place in 2018 in Italy. In an attempt to curb match-fixing, the Italian government decided to veto any kind of promotion of casinos or gambling companies in the country, as well as in soccer. This was a somewhat controversial decision, as clubs claimed that the measure would cause them losses of around €700 million.
The law on advertising restrictions will greatly affect the finances of the clubs, as they will be forbidden to promote these companies on their jerseys, in their stadiums, or on different sports media. This is why several clubs have asked for an extension of up to 4 years so that their numbers are not affected in such a drastic way.
In short, betting has generated numerous benefits for clubs and sportsmen at all levels. Many of them depend on their sponsorships to be able to continue with their activities, so they can receive large amounts of money and be more competitive. On the other hand, the restrictions that some countries are placing on this type of advertising will undoubtedly complicate the finances of these clubs, which have had profitable commercial relationships in recent years with gambling companies.