We take a look at some of the key trends shaping the sector in 2022. What were the most exciting moves? And what are we likely to see continue into the new year.
Gambling and UK Sport
The UK has made progress this year in reforming its gambling laws pertaining to sport. It is believed that the UK Gambling Act Review of 2022 (a white paper by the government reviewing the 2005 Gambling Act, and making recommendations for a reform of the UK’s betting laws) will have significant implications for the sector of sport. This is on top of the April tax increase for online casinos and betting companies, and will require new legal considerations to promote and market sport-related betting services.
The report’s recommendations include restrictions on wager levels, prize limits and testing requirements. There are also changes to the so-called VIP programs offered by betting companies to higher paying gamblers. It is also possible that the ban gambling companies from advertising on the shirts of sports teams will be included in the recommendations. This move would cost football clubs approximately PS40 million annually if it were to become law.
However, there has been little progress in implementing these laws. This is due in large part to the political turmoil in the country. Although the white paper was initially scheduled for publication in 2019, it has been delayed four times . The latest delay occurred in October, just as Liz Truss became the former Prime Minister. The paper’s publication will likely bring about seismic changes in the sports marketing sector, but the uncertainty it generates is unlikely to be a boon for the economy or any other sectors.
The UK has made steady progress in reforming its gambling laws regarding sports this year.
COVID-19 and Finances
The COVID-19 epidemic has had a devastating effect on all streams of revenue, not only its direct impact on sportspeople and fans but also the indirect effects it had on sports revenues in general. In the middle and early stages of COVID-19’s onset, there were mass cancellations of sporting events. Observers only returned to sporting events in reduced capacity starting in mid-2021. This disruption left a financial gap of billions of pounds worth of revenue.
This has led to a surge in interest in cryptocurrency and Web3 assets. Aera is one such platform. It allows for trading sports-related NFTs. Although the significant decline in the NFT market since 2021 has not stopped digitized collectibles, which are generally related to football, from being highly-preferred purchases this summer. NFTs could become a major part of the sport sector if they are popular enough.
The legal minds in the sports sector need to continue to deal with the consequences of force majeure provisions on event cancellations caused by COVID-19. These cases are ongoing and the rulings suggest that the pandemic could be considered a force majeure in certain cases, such as European Professional Club Rugby against RDA Television where either a pandemic or global health crisis are explicitly mentioned. Contracts without such a catchall clause are unlikely be given the same recognition.
Right to Protest
In 2022, the rights of athletes and supporters to show support for social justice movements have been at the forefront. The rules regarding players and spectators’ activism vary from sporting organizations, with the Olympic Games’ rule 50 banning any “kind or demonstration or political, religion or racial propagandism” being the most widely known. In cases of peaceful protests, which aren’t disruptive or that don’t target particular people or countries, Rule 50 has been somewhat relaxed. This has been a boon for athletes who have used it to promote their causes. The most well-known example of this is the act of kneeling in protest of police brutality and racism.
Protest at sporting events is gaining more attention as the World Cup approaches. The UK’s foreign secretary James Cleverly has caused controversy among football fans to ” respect Qatar, which criminalizes homosexuality. It is being feared that Qatari game-goers who peacefully advocate for LGBTQ+ rights may be subject to persecution.
These fears about governmental reprisals against protest are not unfounded. Similar threats were made at the Beijing 2022 Winter Olympics where protesting athletes were warned about the consequences if they were deemed to “violate Olympic spirit”. Fortunately, the Winter Olympics ended without any serious repercussions for those who protested. However, in the wake of Elnaz Rakhabi’s apparent disappearance, Iranian rock climber was warned of possible consequences if their actions were deemed to em>”violate the Olympic spirit”. The tone for sports-related protests in the coming year will be set by the actions taken at the FIFA World Cup.