Sunday, 5 April 2020

Rangers (and Celtic) may have a huge unforeseen problem



Obviously we all know the difficult situation we currently find ourselves in, globally, and while many things have changed these past three weeks to a couple of months, something certainly stands out:

The sports betting industry is on its knees and struggling to survive.

Many might see this as a good thing, given gambling is a serious addiction in the UK and one which companies prey on for profit, and that is true, but the flip side is the potential job losses which is catastrophic.

What does all this have to do with Rangers?

Look at the front of our shirt.

Like hundreds of clubs, our main sponsor is a betting firm, albeit primarily a casino, but 32Red also have a sports division, and a large one at that, and that is responsible for a giant chunk of 32Red’s revenue.

Revenue, which right now, is non-existent.

Rangers had better hope the contract for this deal was paid in advance, otherwise the club may be in line to lose a lot of cash should 32Red, like threatens many other betting firms, go out of business in the next couple of months.

Put simply there’s literally no sport to bet on at present, so the millions these companies make is hugely down, meaning if Rangers’ deal with 32Red was paid at the end of the season, then there’s a strong chance we lose out.

Of course, we’re not alone – Celtic are sponsored by betting firm Dafabet so they too could potentially lose out on a lot of cash, and as we say, hundreds of clubs are in this boat.

We don’t know the value of our deal, or how much we could potentially lose, but our fingers are crossed that the whole deal (or at least each season) was up front otherwise we may have lost a fair chunk of cash.

The deal is currently set to expire at the end of next season, but who knows if the company will survive long enough to get there.
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