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MediaWrites

By the Media, Entertainment & Sport group of Bird & Bird

| 4 minutes read

Is Football Cashing-out on Gambling Sponsorship?

A new Code of Conduct for Gambling Related Agreements in Football (the Code), endorsed by the Premier League, The English Football League, the Women’s Super League and The FA, was published on 24 July 2024. Here we examine the provisions of the Code and consider what it means for the relationship between football and gambling sponsors going forward. 

 

 

Background

When the gambling white paper (White Paper) was published in April 2023, recommendations were set out for the introduction of a cross-sport code of conduct to encourage a more responsible position to be taken as regards gambling sponsorship in sport. The particular concern raised in the White Paper was that sport is a major channel through which children are exposed to gambling advertising and, on this basis, the position of gambling within sport should be conducted in a more socially responsible manner. 

The Code

Whilst the White Paper suggested the introduction of a cross-sport code, progress to date has been divided amongst sports. However, football has joined the ranks of those who have introduced a gambling code of conduct and committed to achieving the objectives set out in the White Paper, along with:

  1. British Horseracing, who published a code of conduct, endorsed by the Racecourse Association and British Horseracing Authority, on 23 July 2024; and 
  2. World Snooker Limited, who have published a code of conduct endorsing identical principles to the above codes.

Whilst each of the sports’ codes will vary slightly, based on the particular nuances of each sport and its relationship with the gambling industry, all of the codes are based around the same four core principles of: (i) protection; (ii) social responsibility; (iii) reinvestment; and (iv) integrity (Principles). The Code also contains non-exhaustive examples setting out how the Principles should be adhered to, which include: 

  • Protection – Gambling sponsor logos should not be included on: (i) webpages which are aimed at children; or (ii) any kit, staff clothing and other branded materials used at community events (including trophies); 
  • Social Responsibility – appropriate safer gambling messaging must be in place, including signposting educational materials and helplines, and ensuring a reasonable and proportionate amount of sponsorship inventory promotes safer gambling messaging; 
  • Reinvestment – revenues from gambling sponsorship must be reinvested into football infrastructure and programmes, such as stadia, training grounds and academies, and programmes such as charitable funding and enhancing the welfare and education services they offer; and 
  • Integrity – agreements should include specific provisions to require the gambling company to: (i) where licensed by the Gambling Commission, maintain compliance with all aspects of the LCCPs; and (ii) ensure promotional materials are not specifically designed to target Participants.

Many of the ‘protection’ and ‘social responsibility’ provisions in the Code are already either mandated by existing laws or advertising regulations or industry codes, or are industry best practice. As a result, we don’t believe those parts of the Code represent a substantial change to current sponsorship activity. 

However, the requirement to reinvest proceeds of gambling agreements is a major change. Whilst the scope of ‘reinvestment’ is quite broad, and includes investment in ‘staging strong competitions, improving infrastructure such as stadia and training facilities and grassroots participation opportunities for local communities’, it is a unique approach to seek to control the way in which the proceeds of gambling sponsorship are spent by Clubs and Competitions. It remains to be seen how that is interpreted and applied by Clubs and Competitions.

Non-Compliance

A complaints procedure will be introduced to address Competitions and Clubs which are failing to comply with the Principles. A two stage process will be implemented:

  1. The individual will contact the Competition or Club directly, who will issue a final response within 12 weeks.
  2. The individual can elect to refer the matter to the Independent Football Ombudsman (IFO) within three months of receiving the final response. In reaching a decision, the IFO will consider relevant evidence, which may include guidance documents issued by the Competitions to their Clubs, and transitional issues i.e. where a Competition or Club has failed to adhere to the Code due to existing contractual commitments. 

If the complaint is upheld, the IFO may refer a Club to the Competition organiser, can recommend steps for the Competition or Club to take to resolve the issue or may hear their own proposals. Notably, the IFO cannot recommend that any form of financial compensation is paid to the complainant.

What’s next?

The next step for Competitions and Clubs is to disclose a list of active ‘Gambling Related Agreements’, which will be updated each season and be made publicly available. Competitions will also have to draft an annual statement which shall detail the active ‘Gambling Related Agreements’ and the actions taken to comply with (or breach) the Code.

It is also worth noting that the IFO will “consider…transitional issues i.e. where it is not possible for a Competition or Club to adhere to the Code at that point in time due to existing contractual commitments”. This shows some consideration for Competitions and Clubs whose ability to comply with the Code may be undermined by existing contractual arrangements, but indicates this will not be a wholesale defence. Whilst Clubs and Competitions should continue to comply with their existing contracts, they should also commence discussions with their gambling partners to inform them of the requirements of the Code going forwards. Moreover, the requirements of the Code will need to be reflected in future contracts, including securing undertakings from gambling partners that they will comply with the LCCPs (where applicable) and ensure promotional materials are not specifically designed to target Participants.

 

Tags

united kingdom, gambling, sport