Betting firm BJ88 pays 185% above market value to secure AFC Bournemouth sponsorship
Bournemouth AFC has secured a significant new front-of-shirt sponsorship deal with betting company BJ88, valued at £8 million. This figure represents a 185% premium over the club's fair market value, which was recently assessed at £2.8 million by The Sponsor magazine. The substantial difference between the fair market value and the actual deal highlights the premium that betting companies are willing to pay for high-visibility partnerships with Premier League clubs, particularly as the industry faces impending regulatory changes.
The numbers behind the deal
In June 2024, The Sponsor published its annual report detailing the fair market value (FMV) of every Premier League club's front-of-shirt sponsorship. Bournemouth’s sponsorship value was calculated at £2.8 million, based on a rigorous methodology that considered factors including the club’s history, performance, cultural relevance, audience, and social contributions.
However, the new deal with BJ88 sees Bournemouth securing £8 million—a significant £5.2 million above this valuation. This discrepancy underscores the inflated sums that betting companies are willing to pay to secure high-profile partnerships with Premier League clubs, particularly with the ban on betting sponsorships on the horizon.
The fair market value methodology
The FMV reported by The Sponsor is the result of an independent and meticulous process. The methodology involves surveying brand marketing executives to understand what they value most in a sponsorship asset. These factors are compiled into a weighted scorecard used to measure the sponsorship strength of each club.
For Bournemouth, the £2.8 million FMV reflects the club's standing in the Premier League, its audience demographics, and its overall marketability. This valuation serves as a benchmark for what brands can reasonably expect to pay for sponsorship on the open market based on actual deals agreed by clubs with stronger and weaker offerings.
The betting premium
The £8 million deal with BJ88 illustrates the significant premium that betting companies are willing to pay for Premier League sponsorships, even as the industry faces a looming ban. This 185% increase over Bournemouth’s fair market value suggests that betting firms see immense value in securing partnerships with Premier League clubs before the regulatory changes take effect. The urgency to lock in these deals, coupled with the extensive worldwide exposure that Premier League sponsorship provides, drives the willingness of betting companies to pay well above market rates.
Bournemouth are not the only club securing inflated sponsorship deals; Nottingham Forest recently signed a £14 million deal with Kaiyun Sports, a staggering 169% premium over their fair market value of £5.2 million. Competition at the bottom of the Premier League table is intense, and these inflated sponsorship incomes can be the difference between survival and relegation.
Ethical considerations and the future
While the financial benefits of such deals are clear, they come with considerable ethical implications. The Premier League’s decision to phase out front-of-shirt gambling sponsorships by the end of the 2025/26 season reflects growing concerns about the influence of gambling in football, particularly on younger fans. Clubs like Bournemouth now face the challenge of balancing immediate financial gains with the long-term impact on their reputation and the ethical stance of the sport.
The difference between Bournemouth’s fair market value and the £8 million secured from BJ88 not only highlights the financial disparities driven by betting sponsorships but also raises important questions about the sustainability of these partnerships as the ban approaches. For Bournemouth and other clubs in similar situations, the future will likely involve seeking out new, non-gambling sponsors who may not be willing to pay such a high premium, potentially leading to a significant drop in sponsorship revenue.
In conclusion, Bournemouth’s new deal with BJ88 offers a clear example of the dramatic difference between fair market value and the real-world figures driven by the betting industry.
