By DEM PANOPOULOS
For the first time in Premier League history, a stadium in England’s top flight has been named after a bookmaker, and questions about its commercial viability continue to be asked.
Stoke City’s six-year deal with Bet365, ensuring the company’s name is plastered across its stadium instead of the former “Britannia,” came into effect at the start of the current Premier League campaign.
http://gty.im/610085522
Stoke City's stadium is now named after a bookmaker.
The Premier League club has tight links with Bet365 – the club’s vice-chairman, John Coates, is also the company’s joint chief executive.
Renaming a stadium isn’t unusual in England’s top flight, however commercially, the move to incorporate a betting agency into the stadium name of one of the most well-known English clubs has inspired mixed reactions.
Former Socceroos player and SBS football analyst Francis Awaritefe says regardless of what people may think about gambling, betting agencies and sport go hand-in-hand.
“Betting agencies are commercially strong, and given they make most, if not all of their revenues from sport, the nexus between betting and sport as far as commercial relationships is a natural one,” he says.
Awaritefe, however, also suggests that Stoke City’s move is a difficult balancing act, to ensure the club, the supporters and the sponsors are all satisfied.
http://gty.im/592273870
The players have had the Bet365 on the front of their playing kit for several years.
“The nexus between sport and betting agencies does raise ethical and integrity concerns,” he says.
“It’s a tricky balance in terms of how good governance might help to balance the interests of betting companies, who want more customers, and sports organisations, who have a duty to protect the integrity of sport, in addition to social concerns about issues of gambling addiction.”
Stoke City has featured Bet365 on the front of its kits since the start of the 2012/13 season, however the new stadium deal is expected to create an even stronger link between the two brands, especially with the exposure of stadium names on popular video games like FIFA.
Dr Ross Booth, sports economist at Monash University, suggests the move is likely to be financially driven and that it differs from local sport.
“Stoke need to generate revenue to try and stay competitive with the top 4 – Manchester United, Manchester City, Arsenal and Chelsea,” he says.
http://gty.im/609520598
The new name is plastered over the stadium.
“The AFL is perhaps moving in the other way – reducing revenue from gaming. For example, NMFC [North Melbourne Football Club] has no gaming revenue.”
Stoke is delighted with the deal, and Awaritefe says it’s a financially viable move, although it may need to be reconsidered.
“The financial terms of the deal may be a positive for the club, if the naming right sponsor is paying a premium,” he says.
“This of course may need to be scrutinised given that it’s a related-party transaction, which may have been inflated above market value to help boost Stoke’s commercial revenue.”
Stoke City is currently 19th on the table, and has only secured one point out of a potential nine at Bet365 stadium.
@DemP_9