October 29 – Spanish authorities have told La Liga clubs that they have until the end of this season to cut ties with betting sponsors before new gambling regulation bans betting sponsorship is enforced next year.
Spanish clubs, had raised concerns to the government and regional councils of the impact of an immediate ban on betting sponsorships, and will be relieved that they have a grace period to reorganise. But the lost revenue from the betting industry will be significant for clubs.
La Liga president Javier Tebas had warned that the government restrictions would cost €90 million in sponsorship revenues.
Spanish Minister for Consumer Affairs Alberto Garzón wrote to La Liga clubs to clarify that betting contracts be prohibited when the new law enters into force.
In his letter, Garzón argued that the necessity for such a sweeping change was mandated by a growing number of betting and gambling partnerships signed with individual athletes or clubs, a practice that the government doesn’t want to endorse or normalize.
In Spain, seven out of 20 La Liga clubs have gambling companies as their main sponsor. Tebas said La Liga is still seeking to get a transition period of three years instead of one to allow the clubs to adjust to the new reality and soften the financial fallout of the coronavirus pandemic.
Contact the writer of this story, Samindra Kunti, at moc.l1734937539labto1734937539ofdlr1734937539owedi1734937539sni@o1734937539fni1734937539