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Possible sponsorship problems ahead...

Postby Cloud Strife

http://www.bbc.co.uk/news/business-43260012

The UK's biggest bookmaker, Ladbrokes Coral, says it will have to cut the £8m it spends each year on sponsoring sports events if new rules reduce the maximum stake on gaming machines.

The government is currently deciding whether to cut maximum stakes on Fixed Odds Betting Terminals from £100 to as little as £2 to fight problem gambling.

More than half of Ladbrokes' betting shop revenue comes via the machines.

Ladbrokes says such a dramatic drop in income means cuts are made elsewhere.

Sponsorship
Almost £3.5m of the company's sports sponsorship is dedicated to horseracing.

This includes the Ladbrokes Winter Carnival (a two day meeting at Newbury), the Coral Scottish and Welsh Grand Nationals, the Coral Cup (Wednesday at Cheltenham), the Coral Eclipse (one of the biggest flat races of the year) and the Coral Sprint at York.

It also sponsors the Rugby Football League Challenge Cup and the Scottish Professional Football League as well as snooker and darts.

Ladbrokes Challenge Cup Final
Image caption
Ladbrokes' sponsorship of the Rugby League's Ladbrokes Challenge Cup means it gets prominent promotion, including having its ribbons on the trophy
Ladbrokes said: "A severe stake cut has many implications not least on jobs, the Treasury and the sports we support.

"Sports sponsorship is a two-way street, yes we get exposure but it also helps sports finance their entire structures right down to grass-roots funding."

The company suggested that horse racing was less vulnerable to potential sponsorship cuts than other sports.

It said: "Horse racing is in the bookie DNA and some sponsorships and partnerships go back many years and have a history and association that make them very valuable and high on the list to continue."

William Hill also says that its £1m sponsorship of horse racing could be "at risk" if the stake on FOBTs was set too low.

Horse racing
The possibility of losing sponsorship is yet another headache for horse racing, which fears that anything that hurts high street bookmakers could reduce its funding.

Racing Post editor Bruce Millington said: "No-one likes the fact that the horseracing industry is a hostage to a whole load of high octane fruit machines but there's little question that a £2 limit would have significant implications."

Sponsorship is just one of the ways the sport is funded by bookmakers.

A Ladbrokes-sponsored racing event in Doncaster
Image caption
Horse racing bets and media screening rights also raise money for the sport
A 10% levy on horse racing bets contributes about £50m, which is managed and distributed by the Horserace Levy Betting Board as prize money, to improve and support racecourses and invest in equine veterinary science.

This used to come from bets placed in shops, but last year it was expanded to include online and offshore revenue. As a result, it is expected to double this year and the impact of any potential shop closures on it is disputed.

The Department for Digital, Culture, Media and Sport said gambling was one of many ways in which sports obtain fundraising.

"We are clear that FOBT stakes will be cut to ensure we have a safe and sustainable industry where vulnerable people are protected," it said in a statement.

The department said a final decision on maximum bets will be made "in due course".

Screen rights
A much larger loss of money for horse racing is likely come in the area of media rights.

Each betting shop pays about £30,000 a year to the industry to screen their races. If curbing FOBTs leads to a reduction in the number of shops, as the bookmakers say, then that would mean there would be fewer screens and therefore fewer buyers for the events.

The chief executive of the largest race course group in the UK, Arena Racing Company, Martin Cruddace, estimates that a £2 maximum stake could lead to a minimum £50m impact on racing.

"The effect on prize money and the economic ecosystem of the industry would be pretty catastrophic," he said.

"It would be a sad irony that the great work of the industry and government in extending the levy to online operators last year could be undone (and more) at a stroke."

Re: Possible sponsorship problems ahead...

Postby Cloud Strife

If the betting industry decides to cut down on it's sponsorship portfolio because of government regulations, where will that leave snooker? I know in the article it mainly talks about shitty horse-racing, but you'd have to be very naive to think it wouldn't eventually affect snooker as well.

We've been in this scenario before...

Re: Possible sponsorship problems ahead...

Postby Lucky

Gambling is probably the biggest problem in this country that gets brushed under the carpet. If snooker needs money from misery mongers that couldn’t care less about their ‘customers’ welfare then its in a bad way.

Re: Possible sponsorship problems ahead...

Postby KrazeeEyezKilla

Mo Farrah is 100% clean. Him having a dramatic improvement in his late 20's, working with a coach with past links to doping and missing drug tests including not answering after his doorbell rang seven times doesn't mean anything.

Re: Possible sponsorship problems ahead...

Postby KrazeeEyezKilla

Snooker is probably in a better place to handle any sponsorship ban then it was 15 years ago but if it was introduced it would tip the balance heavily towards China. The effect any ban has on darts would be interesting too as it wasn't big enough to be affected when tobacco was banned.

Re: Possible sponsorship problems ahead...

Postby Badsnookerplayer

KrazeeEyezKilla wrote:Mo Farrah is 100% clean. Him having a dramatic improvement in his late 20's, working with a coach with past links to doping and missing drug tests including not answering after his doorbell rang seven times doesn't mean anything.

Ha ha - Wiggins also should be exonerated. His improvement from 127th (or something ) in 2006 in the drug addled Cofidis team to winner in 2012 in the clean Sky team is testament to his hard work and commitment

Re: Possible sponsorship problems ahead...

Postby Wildey

Listen Guys its no secret some words are not acceptble on snooker island we have posted enough about it now last warning the Next person or persons to use that word will be banned for a Month

Re: Possible sponsorship problems ahead...

Postby SnookerFan

Cloud Strife wrote:
Badsnookerplayer wrote:I'm hoping Quorn might pick up sponsorship of an event


I'm hoping Pukka Pies make a return.


You laugh, but I don't understand why snooker doesn't look to the food and drink market more for sponsorhip.

At the matches, people often by snacks or drinks. Or even meals. At the UK Championships that Pukka Pies sponsored, you could buy said pies in the venue.

People drink and eat when watching it on television too. Why not advertise your brand of chocolate, crisps, beer or cola or whatever to the televised audience? Happens in other sports.

Re: Possible sponsorship problems ahead...

Postby Dan-cat

SnookerFan wrote:
Cloud Strife wrote:
Badsnookerplayer wrote:I'm hoping Quorn might pick up sponsorship of an event


I'm hoping Pukka Pies make a return.


You laugh, but I don't understand why snooker doesn't look to the food and drink market more for sponsorhip.

At the matches, people often by snacks or drinks. Or even meals. At the UK Championships that Pukka Pies sponsored, you could buy said pies in the venue.

People drink and eat when watching it on television too. Why not advertise your brand of chocolate, crisps, beer or cola or whatever to the televised audience? Happens in other sports.


Seems sad to admit it, but maybe these companies don't want snooker. Why did Pukka Pies do only one event? Probably because it made no noticeable difference to their brand. Unlike betting companies who probably see an immediate up-tick from snooker exposure.

In China there are a variety of sponsor types because of the massive viewing figures.

I'm sure Barry tries other avenues. We are screwed though if a law comes in to stop betting companies being featured on TV...

Re: Possible sponsorship problems ahead...

Postby Holden Chinaski

Here's an idea. A fashion brand like Hugo Boss could sponsor snooker and design the clothes for the players. Snooker players always play in fancy waistcoats and stuff so why not...

Re: Possible sponsorship problems ahead...

Postby Cloud Strife

Dan-cat wrote:
SnookerFan wrote:
Cloud Strife wrote:
Badsnookerplayer wrote:I'm hoping Quorn might pick up sponsorship of an event


I'm hoping Pukka Pies make a return.


You laugh, but I don't understand why snooker doesn't look to the food and drink market more for sponsorhip.

At the matches, people often by snacks or drinks. Or even meals. At the UK Championships that Pukka Pies sponsored, you could buy said pies in the venue.

People drink and eat when watching it on television too. Why not advertise your brand of chocolate, crisps, beer or cola or whatever to the televised audience? Happens in other sports.


Seems sad to admit it, but maybe these companies don't want snooker. Why did Pukka Pies do only one event? Probably because it made no noticeable difference to their brand. Unlike betting companies who probably see an immediate up-tick from snooker exposure.

In China there are a variety of sponsor types because of the massive viewing figures.

I'm sure Barry tries other avenues. We are screwed though if a law comes in to stop betting companies being featured on TV...


From what I can see, Darts would be the sport thats going to be screwed the hardest as it's events are almost exclusively betting companies, even the foreign ones. At least snooker has the lucrative Chinese market to fall back on somewhat. It's not ideal though.

So basically without betting sponsorship you can expect Barry Hearn's sporting empire to come crashing down around him. I hope he's got enough stashed away for retirement just in case...

Re: Possible sponsorship problems ahead...

Postby KrazeeEyezKilla

Matchroom has boxing so they'll be fine. Darts has one thing Snooker doesn't which is the ability to draw thousands of people to events but without betting sponsorship it will be hard.