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Nine Premier League clubs have yet to secure front-of-shirt commercial deals for next season and 12 have not signed contracts, leading to increasing concerns that several may begin the campaign without a shirt sponsor.
The imminent ban on shirt advertising from gambling companies is having a significant impact on all clubs’ commercial returns, other than those in the big six, with an executive at one club telling the Guardian that the collective loss of income from shirt deals could be as high as £80m next season.
Gambling operators, particularly those serving Asian markets, have for several years been willing to pay far more than other companies to sponsor Premier League clubs in order to secure global brand visibility.
After a consultation with the government the Premier League agreed to introduce a voluntary ban three years ago, which was delayed until the start of next season to give clubs time to find new sponsors, and the removal of gambling firms from the market has led to intense competition among clubs at lower prices.
Of the 10 top-flight clubs with gambling sponsors this season only Bournemouth have announced a replacement, with the club’s stadium sponsor Vitality moving on to the shirt in a cut-price deal that is likely to be replicated elsewhere.
The Guardian has learned that Brentford are close to announcing that their existing training kit sponsor, the job search website Indeed, will be on their shirt next season.
Both clubs are understood to have accepted reductions of around 50% from their existing deals with bj88 and Hollywood Bets respectively, with the new contracts worth between £4m and £5m a year, in a decline that is indicative of the state of the market.
Everton and Fulham appear set to buck that trend as they are in advanced negotiations with the foreign exchange trader CMC markets that would see the company sponsor both clubs in deals that will bring a modest increase on their existing contracts with Stake and SBOBET respectively, but the other seven clubs with gambling companies’ backing remain in the market.
In addition Chelsea and Newcastle are still seeking new sponsors, as their existing deals with IFS and Sela expire in the summer. Chelsea have begun each of the past three seasons without a shirt sponsor before agreeing short-term deals later in the campaign, a strategy that has cost the club tens of millions of pounds in revenue.
The removal of gambling companies from the market has exacerbated what was already a huge divide between the other members of the big six and the rest of the Premier League in terms of the sponsors they can attract.
Arsenal, Liverpool, Manchester City and Manchester United are locked into long-term deals with Emirates, Standard Chartered, Etihad Airways and Snapdragon worth between £50m and £60m a year, although Tottenham’s £40m-a-year deal with the insurance company AIA expires at the end of next season.
Leeds and Brighton have long-term contracts with Red Bull and American Express respectively, but the rest of the clubs have found shirt negotiations challenging.
“Nearly everyone is losing money,” one senior club executive told the Guardian. “Outside the big six, shirt sponsorship offers have dropped by around 50% from a range of between £8m and £12m a season. There may be some exceptions but it is a very difficult market. And with some clubs opting to switch sleeve or training kit partners to front-of-shirt, there is a knock-on effect for those deals too.”
Everton and West Ham have opted to move their existing shirt sponsors Stake and Boyle Sports to the players’ sleeves next season as sleeve deals with gambling companies are not banned, but many other clubs are still looking for new sleeve and training kit sponsors.
The EFL has not banned gambling sponsorship and it has a contract with Sky Bet as title sponsor of all three divisions until 2029. As a result EFL clubs are likely to be the beneficiaries of gambling companies that want to remain as shirt sponsors.
