Transparency of football sponsorship challenged by report on illegal betting brands
In a recent investigation conducted jointly by The Financial Times and international partners, an eye-opening exposé has raised questions about the integrity and transparency of sponsorship deals between Premier League football clubs and betting brands. The report explores the convoluted ownership structures behind dubious betting brands and sheds light on potential connections to illegal gambling activities in China.
The investigation reports a trend where football clubs, often unaware of the provenance of their sponsors, may be indirectly promoting brands linked to illegal betting operations.
Highlights of the investigation
A number of betting brands that sponsor Premier League clubs employ intricate ownership structures involving numerous shell companies, making it nearly impossible to trace the ultimate beneficiaries. Such structures are designed to obscure the true owners behind these brands. The report also indicates a betting boom in China. With over 200 million football fans in China in 2022, the country represents a massive market for betting companies. As gambling is largely illegal in China, these companies target Chinese customers through European soccer channels and events, exploiting the popularity of football to drive online betting.
Proxy betting and lack of due dilligence
Chinese operators use proxy betting as a means to bypass strict gambling regulations. This involves agents in China facilitating bets placed on overseas betting platforms. These agents often establish offshore companies in countries like the Philippines to handle these operations. The investigation reports that football clubs do not always conduct rigorous due diligence when vetting potential sponsors. The responsibility for scrutinizing sponsors falls on individual clubs and the Premier League most likely does not impose uniform standards for vetting.
The investigation uncovers a number of Asian-facing betting sponsors that gain licences to advertise in the UK through white label operators. These operators, while licensed by the Gambling Commission, may not thoroughly vet the brands they represent. This can lead to indirect promotion of brands with questionable backgrounds. Again this points to an ineffective due dilligence process.
British Virgin Islands shrouded in secrecy
A recurring theme in the investigation is the use of the British Virgin Islands as a hub for registering shell companies and obscuring ownership details. This secrecy hampers efforts to identify the true owners of betting brands. The investigation raises concerns about the lack of transparency and accountability in football sponsorships. Fans and the public have a right to know who is financially backing their favorite teams and whether funding may havedubious origins.
This recent repoprt calls for the need for greater transparency and oversight in football sponsorships, especially when dealing with betting brands. As the Premier League continues to be a global phenomenon, it is essential that clubs and regulators ensure that they are not unwittingly involved with entities linked to illegal activities.
The investigation recommends a comprehensive review of sponsorship deals and licensing arrangements in the football industry to protect the integrity of the sport and the interests of its fans. The public trust in the regulation of the gambling industry and the football clubs’ financial dealings is at stake and it is essential to address these concerns promptly and thoroughly.
Raising the game of due dilligence
In summary, sponsor due diligence is not just a regulatory obligation; it is an indispensable practice for safeguarding the reputation of the Premier League. The recent revelations of football sponsorships in the report by the Financial times has shed light on the lack of transparency of sponsorships and the repercussions can be devastating and damage the organisation’s reputation and credibility. In addition, ongoing monitoring and reporting capabilities are critical for maintaining transparency and trust.
