Laliga clubs set for financial setback as government orders termination of betting sponsorships

La Liga clubs have been told to cut ties with betting sponsors before new gambling regulation banning betting sponsorship is enforced next year.

The Spanish government through the Minister of Consumer Affairs, Alberto Garzon, has addressed all 25 La Liga football clubs presidents in a letter, calling for an end to gambling sponsorships at the end of this season (2020/21).

The letter also informs Laliga clubs that their deals with betting companies will become forbidden once the new royal decree is officially in place, which is only delayed by approval by a cabinet meeting. The decree affects all sports in Spain.

The letter further stated that betting companies  sponsoring teams and athletes had “contributed to normalising a practice with serious health and social risks which need to be minimized in the field of advertising.”

It also said, “status as role models had led to an increase in gambling among young people aged 18-25, rising from 29% to 40% in the last four years. The amount of money spent by young people on gambling, meanwhile, had risen by 13% annually.”

Seven of the 20 top-flight Laliga teams have shirt sponsorship deals with betting companies. With the likes of Granada (Winamax), Levante (Betway), Real Betis (Betway), Sevilla (MarathonBet), Valencia (Bwin) amongst the rest.

Laliga president, Javier Tebas, has stated that teams would lose up to €90million if they are obliged to stop betting deals. He also made a request to the Minister of Consumer Affairs, Alberto Garzon, to give teams a period of up to three years to help them adapt to the changes. But the request was rejected.

With clubs already facing serious financial difficulties due to the impact of the Covid-19, this new decree would be a huge blow and setback for the revenues of Laliga teams. According to reports, the vast majority of teams are very angry with this decision made by the government.

Source https://nairametrics.com/