Fri. Nov 15th, 2024
Football clubs and gambling brands: New code of conduct

A new Code of Conduct for football clubs partnering with gambling brands

Partnerships between football clubs and gambling brands have become the norm: over a quarter of Premier League clubs’ had gambling partners as their front of shirt sponsors for the 2023/24 season.

These partnerships offer significant financial support to the clubs, whilst providing prominent branding opportunities and engagement avenues for brands in domestic markets as well as globally. Data company Statista estimated that in the 2019/20 Premier League season, gambling shirt sponsorship amounted to almost £350 million [1].

This has prompted the Government to weigh in, and in April 2023, it commented:

We expect all sports to take a responsible approach to gambling sponsorship and support the sector’s efforts to implement minimum standards for social responsibility through a cross-sport Code of Conduct. For individual sports we believe sports’ governing bodies are best placed to decide what approach and measures are appropriate to protect their fans.[2]

In response, the Code of Conduct for Gambling Related Agreements in Football (the “Code“) has been collectively drafted by the Premier League, The English Football League, the Women’s Super League and The FA to apply across professional football.

Here, we’ll cover:

  • The impact of the Code and what it means for football clubs and brands entering into gambling partnerships.
    1. Other regulatory requirements that football clubs should adhere to when venturing into such partnerships.
      1. Other considerations to keep in mind prior to entering into partnerships with gambling brands.

      To assist compliance with the Code, we have prepared a handy checklist detailing the specific requirements that the Code requires football clubs to adhere to. If you’d like a copy of this checklist click here to get in touch with our team.

      What does the Code change?

      The Code sets out actions and practices that football clubs entering into gambling related agreements should undertake. These actions and practices are designed to ensure that the Code’s four underlying principles are achieved, which are:

      1. Protection
      2. Social Responsibility
      3. Reinvestment
      4. Integrity

      Further context and meaning of each principle is included in the Code as well as, crucially, a non-exhaustive list of examples of how each principle should be applied. On top of this, the Code contains:

      1. An obligation on Clubs to disclose a list of gambling related agreements, to be made publicly available as part of a central register at the beginning of each season.
      2. An obligation on Premier League, The English Football League and the Women’s Super League respectively to publish an annual statement at the end of each season detailing how the Code has been implemented.
      3. A detailed two-stage complaints procedure through which a complainant may raise a concern regarding compliance with the Code.

      Clubs with gambling sponsors should be aware of the requirements of the Code, which requires both new and existing agreements to be compliant. To assist compliance with the Code, we have prepared a handy checklist detailing its specific requirements. Click here to get in touch with our team to request a copy.

      Further compliance requirements

      Outside of the Code, Clubs need to adhere to several regulations and guidelines to ensure compliance with gambling regulations, with the primary piece of legislation being the Gambling Act 2005. Additionally, the Committee of Advertising Practice (“CAP“) and Broadcast Committee of Advertising Practice (“BCAP“) detail rules on the advertisement of gambling, as does the UK Gambling Commission. Of course, the rules of the governing bodies and competitions should also be complied with.

      As with any legislation, rule or piece of guidance, the goalposts are always changing, so what may be appropriate in one season may longer be appropriate in the next. It is therefore important to stay up to date with the most recent guidance provided by the Advertising Standards Authority. Among other requirements, the CAP and BCAP detail that advertisements must not strongly appeal or target anyone under the age of 18 and must not feature any person under the age of 25.

      Other considerations

      Pre-contract due diligence is key for a Club to ensure a successful and compliant partnership. Using company background checks can ensure clubs are aware of potential partners’ reputation, history and public perception as well as their financial stability to understand if they can meet contractual obligations.

      Clubs may also wish to conduct stakeholder engagement assessments prior to entering into a contractual agreement. This allows the club to consider feedback from staff and players who may be affected by the partnership. It also allows the would-be Club to gauge the potential reaction of the Club’s fan base, potentially conducting a cost analysis assessment with any potential loss of earnings versus the influx of funds.

      What next?

      With the publication of the Code (on top of the already existing framework), there will be more scrutiny than ever on Clubs and competition organisers to ensure gambling sponsorship is carried out in a socially responsible way. Clubs are already being encouraged to develop a narrative of how they are compliant.

      There will likely be more developments to come, not only once we see the Code’s practical effects take shape and how Clubs interpret it, but also following its first review which is due to take place at the end of the 2024/25 season. Beyond this, Premier League clubs already collectively agreed last year to withdraw gambling sponsorship from the front of clubs’ matchday shirts from the 2026/27 season, so we will likely see more inventive ways of exploiting partnership rights and branding thereafter.

      In terms of the Code specifically, Clubs with gambling sponsors should ensure they are familiar with the Code and make sure that its features are factored into the arrangements they have with their partners – both new and current.

      To assist compliance with the Code, we have prepared a handy checklist detailing its specific requirements – click here to get in touch with our team to request a copy.

      [1] “Annual revenue earned from shirt sponsorship deals by selected clubs in the Premier League in 2022/23, by club”, Statista. Link (accessed 7 August 2024).

      [2] The Government’s White Paper, “High Stakes – Gambling Reform for the Digital AgeLink (accessed 7 August 2024).

      By Xplayer