ALL BETS ARE OFF!
BetVictor pull plug on big-money deal
THE ISTHMIAN, Northern Premier and Southern Leagues are facing up to the challenge of finding a new headline sponsor after BetVictor tore up their twoyear deal worth well in excess of £100,000 per year halfway through.
The gambling company opted to exercise a break clause after one year partly because of the negativity the sponsorship received and also due to some clubs across Steps 3 and 4 not fully complying with their requirements.
Initial reaction to the unveiling last summer was met by a mixed reception with some clubs voicing their displeasure at the landmark sponsorship that saw all leagues under the same title.
BetVictor were hugely cautious
when it came to how their brand was perceived and were highly sensitive to regulations set out by the gambling commission.
Clubs weren’t required to have the company logo on their shirt sleeves or their advertising hoardings, while there were strict restrictions around displaying pictures of people under 25 on websites and social media. Instead, the company were focused on the digital media benefits.
While the revenue wasn’t paid in cash to clubs as such, the leagues used it for prize money along with other benefits like paying their public liability insurance, at a value of £700, ground improvements and 32 match balls.
BetVictor informed the leagues in March they wouldn’t be continuing into year two but with the subsequent coronavirus outbreak it will be an even tougher marketplace to attract a replacement.
The leagues attempted to put their case forward for the second year but the gambling giants didn’t budge.
Bigger picture
However, in light of the coronavirus pandemic, the situation fed into the bigger picture and was one of the key factors behind the decision to end the current season, which has since been ratified by the FA Council.
The leagues have now written to clubs outlining the reasons for the early termination.
Northern Premier League chairman Mark Harris said: “I can confirm it has been terminated. In compliance with our out-going sponsor’s wishes, that information was originally kept confidential to league boards.
“With BetVictor’s agreement, they have now lifted that contractual requirement which is why we’ve been able to notify our clubs.
“Although this is the worst possible time for this to happen, we are now seeking a single sponsor for all three leagues.
“In the meantime, we are updating our sales prospectuses, our valuations and all the figures so we are in a position if any brand wants to speak to us now or going forward, we are ready and able to have that conversation.
“What the BetVictor experience has shown us is that it’s perfectly possible, practical and desirable to have one brand sponsor all three leagues because the whole is greater than the sum of the parts.”
Negative stories in the national media also made BetVictor jumpy, which contributed to their decision that the risk to their brand exceeded the “digital benefits”.
That came around the launch of ‘phase two’ of their plan before Christmas that would have seen mention of available odds on club websites, although it was stressed it would be voluntary.
Isthmian League chairman Nick Robinson said: “I’ve written a letter which is going out to our clubs saying this is a lesson for the future. In the future, we will be applying the requirements of sponsors more rigorously.
Balance
“If companies are going to put that sort of money into football, they are entitled to have 82 clubs comply.
“It was disappointing. We had a two-year deal with a one-year option. I felt they probably wouldn’t take up the year option but I also didn’t think they would end early. The decision was taken several weeks ago before coronavirus hit Europe.”
Harris believes, despite BetVictor’s decision to withdraw, that the leagues have demonstrated they have a good product even with the reaction to the deal last summer.
He said: “It’s a balance between securing financial support at the correct level and with sectors that do meet all our brand values. Sometimes you have to make compromises.
“Would we look for a betting partner again? I have to say it personally wouldn’t be my first choice. The lesson out of this is that betting is so heavily regulated and is so heavily ensconced in social attitudes – particularly through social media – my preference this time out would be to go for a sponsor that isn’t quite from such a heavily regulated area.
“But we can demonstrate that in a very short period of time, and BetVictor will confirm the case studies, that we delivered very substantial numbers digitally, which is what they wanted.
“We’ve got a fantastic story to tell. It’s highly unfortunate that BetVictor didn’t feel they could have the confidence to continue with us.”
BetVictor didn’t reply to The
NLP’s request for comment before the paper’s deadline.