Reports SPAIN - ONLINE UPDATE
La Liga President, Javier Tebas, claimed the law will cause Spanish football “€90m worth of harm” - a hefty blow especially since La Liga says they have already missed out on €2bn in ticketing and merchandising revenue since Covid struck in March 2020 as matches were cancelled or played behind closed doors. It is thought the law could also drive down the value of other sponsorship agreements in the future with other industries.
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Advertising using well known figures such as celebrities or influencers is prohibited.
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No social media advertising is permitted, although messages can be sent to their followers and on You Tube advertising is only available during the restricted 1am-5am time slot.
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Meanwhile, advertising cannot be shown in places visited by minors such as cinemas, whilst there will be instruments for parental control to block advertising online via search engines or other platforms.
Tere was a grace period for the various decisions to allow for the implementations, which ran until April or August depending on the prohibition.
La Liga football clubs were given a one season transition period to remove all associations with gambling companies. As of May 2021 all ties had to be severed. Te decree did not allow for current deals to expire, unlike the case where tobacco advertising was banned.
Over €600m is generated annually through sponsorship in La Liga, and television channels produce a return of investment of around €1.5m. Around 40 per cent of adverts seen during a La Liga match (shirts, billboards etc) were related to betting companies.
Seven out of the 20 La Liga clubs had shirt sponsorship deals with betting firms, whilst some 30 out of 42 clubs in Spain’s top two
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divisions had commercial partnerships with betting companies.
Betway for example sponsored three clubs (Alavés, Levante and Real Betis) whilst others included Dafabet (Cadiz); Winamax (Granada); Marathon Bet (Seville) and Bwin (Valencia).
Seville’s deal with Marathon Bet, was said to be worth €5m annually, and has now been replaced by fintech company Naga for the 2021/22 season, whilst Betis’ deal with Betway, struck in 2020 for three years, was said to be worth €10m. Telecommunications firm, Finetwork, replaces Betway as shirt sponsor.
La Liga President, Javier Tebas, claimed the law will cause Spanish football “€90m worth of harm” - a hefty blow, especially since La Liga says they have already missed out on €2bn in ticketing and merchandising revenue since Covid struck in March 2020 as matches were cancelled or played behind closed doors. It is thought the law could also drive down the value of other sponsorship agreements in the future with other industries.
In 2020, investment in advertising for the online gambling sector beat all records and spend was a total of €464m with around €16m per month on average spent on advertising and between €2m and €4m monthly on sponsorship.
Total sponsorship spend in 2020 was €26.8m an increase of almost 30 per cent whilst €197.2m was spent on Bonus Promotions – an increase of 53 per cent YoY.
In comparison, the amount spent on marketing during the first month after the ban, which came into effect in August 31 2021 (Q3 2021) was down by 41 per cent YoY and down 28 per cent QoQ.
In Q3 2020, the amount spent topped €152.6m compared to €89.6m for the Q3 2021. Of this amount, €36.1m was spent on advertising (a drop of 39 per cent QoQ and drop of 30 per cent YoY), whilst only €1.6m was spent on sponsorship (a huge drop of 79 per cent QoQ and drop of 77 per cent YoY).
Many in the industry say the restrictions are an infringement on the freedom of business and an attack against the gambling industry specifically, and some fear it could lead to an increase in illegal and unregulated gambling.
Association JDigital filed an appeal against the law saying it “violates the right to free competition and imposes unjustified discrimination against online gambling.”
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