Spanish football club Osasuna has rejected suggestions that it effectively wagered against its own success. This comes after reports linked the club to a multimillion-euro position tied to relegation through prediction market platform Kalshi.
The club confirmed it had purchased a €1.2 million insurance policy that would have paid approximately €6 million if it had been relegated from LaLiga. However, Osasuna stressed that the arrangement was a financial risk-management measure. It was not a betting activity.
The clarification follows media reports claiming a Spanish football team had “bet against itself” by taking a position that would profit from relegation.
Club Responds to Allegations
In a public statement, Osasuna said recent reports had mischaracterized the nature of the arrangement. The club emphasized that the insurance policy was designed to protect the club against the financial consequences of relegation.
The club narrowly avoided relegation despite losing its final match of the season. It said the policy was intended solely as a safeguard against a worst-case sporting outcome.
According to Osasuna, relegation insurance is a recognized financial tool used by professional clubs to mitigate revenue risks. These revenue risks are associated with dropping to a lower division.
How the Kalshi Connection Emerged
Osasuna explained that its involvement ended after signing the insurance agreement with insurance broker Howden.
According to reports, Howden subsequently worked with sports risk management specialist Game Point Capital. Game Point Capital then engaged Greenlight Commodities to place a corresponding position on prediction market platform Kalshi.
The position reportedly mirrored the value of Osasuna’s insurance coverage. This created the perception that the club had indirectly benefited from a market tied to its own relegation.
However, Osasuna insisted it had no knowledge of or involvement in any arrangements made after purchasing the insurance policy.
Club Distances Itself from Prediction Markets
In comments provided to media outlets, the club stated:
“Osasuna did not place any bet, did not participate in any prediction market and did not have any direct relationship with Kalshi or any similar platform.”
The club further emphasized that its relationship was limited exclusively to obtaining insurance coverage through Howden. Osasuna played no role in how third parties managed or hedged the associated financial risk.
Relegation Insurance Common in Professional Football
Industry participants have largely defended the practice, arguing that insurance against sporting outcomes is not unusual in professional football.
Game Point Capital CEO Will Hall said financial protection against promotion or relegation risks is a legitimate risk-management strategy, even if such arrangements are rarely discussed publicly.
He noted that teams regularly hedge financial exposure tied to sporting performance. He also argued that relegation insurance should be viewed in the same context.
Several industry observers echoed that view, describing such policies as practical financial planning tools rather than speculative wagers.
Similar Cases Have Emerged Before
While the Osasuna case has attracted attention due to its connection with prediction markets, relegation and performance-related insurance products are not new to football.
Professional clubs have previously used insurance arrangements to protect against financial losses resulting from missed sporting objectives. One widely cited example involved Borussia Dortmund. It reportedly obtained insurance coverage in 2015 linked to failure to qualify for the UEFA Champions League.
LaLiga itself has described these types of policies as common financial instruments. They are used to manage the economic risks associated with sporting performance.
Growing Intersection of Sports Finance and Prediction Markets
The controversy highlights the increasingly blurred lines between traditional financial risk management and emerging prediction market structures.
As platforms such as Kalshi continue to expand into sports-related contracts, the public sometimes views transactions that resemble insurance hedging as betting activity, even when the underlying purpose is financial protection rather than speculation.
For Osasuna, the distinction remains clear: the club argues it purchased insurance coverage to manage risk, not to profit from failure.
The case is likely to fuel further debate about how prediction markets intersect with sports finance. This is particularly relevant as these platforms become more widely used by institutions seeking to hedge event-related risks.
