Now that a major overhaul has been made to its sponsorship guidelines, Major League Soccer (MLS) is set to become the first major sports league in America to allow jersey and stadium naming rights to be sold to sports betting operators.
The move comes on the heels of the U.S. Supreme Court’s landmark decision to overturn PASPA 1992 and allow states to operate legal sports gambling outside of Nevada.
The MLS had already previously opened its doors to beer and wine sponsorships, but with the new guidelines it’s set to create history by allowing its 24 clubs to accept funding and promotion from the fast-growing sportsbooks market. The changes are set to take effect immediately.
With the new guidelines, North America’s top professional soccer league is leading the way for its much bigger counterparts in other sporting arenas to hopefully follow suit. As of now, there is no word on whether the National Basketball Association (NBA), National Football League (NFL), National Hockey League (NHL), and the Major League Baseball (MLB) will take similar steps though.
Starting next season, MLS will begin offering sponsorship spots on the sleeves of its teams’ jerseys, in addition to the prime advertising real estate that is the front of these teams’ uniforms. The new guidelines also allow sportsbooks to promote within stadiums and during broadcasts. It also gives them the option to potentially launching sports betting booths and lounges in the stadiums, albeit subject to state laws and the approval of regulators.
However, a league guideline still explicitly states that all advertising for sports gambling should still be only directed to an audience who is above a certain age. The monumental changes were approved during the MLS Board of Governors meeting held recently.
MLS VP of business development Carter Ladd expressed that the goal of the revamped guidelines is to increase fan engagement across the board, as well as improve revenue. Ladd expressed that it was high time they took in other potential sponsors with the changing landscape brought about by the legalizations of sportsbooks.
However, the new rules have in place limits that prevent sports betting operators gaining access to league athletes. Soccer stars below 21 will also be prevented from endorsing any sports betting marketing campaigns.
European football clubs have had a long and profitable relationship with sports betting companies over the years and Ladd hopes a similar relationship can be established in America.
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