Skip to main content

Clubs warned over crypto sponsorship

The chief UK financial regulator has warned Premier League football clubs they could face legal action over “questionable sponsorship deals” with crypto companies that are not authorised to operate in Britain. The Financial Conduct Authority has written a letter to Premier League men’s clubs stating they risk enforcement action by taking sponsorship money from crypto and trading companies that are not permitted to offer services in the UK.

Crypto companies have become prolific sponsors of top-tier teams in recent years as they seek to tap into the millions of football supporters and encourage them to trade digital tokens.  The FCA said it had seen “an increase in football club partnerships with unauthorised firms, some of which appear to be operating unlawfully”.

In the letter, Fiona Mackinnon-Miller, head of the FCA department overseeing scams, promotions and consumer investments, warned that such deals “risk conferring legitimacy on these firms and may expose UK consumers to harm”. The FCA declined to identify specific clubs or sponsorship deals that it is focused on.

In April, Chelsea extended its sponsorship agreement with crypto exchange BingX. Manchester City has a shirtsleeve sponsorship deal with OKX, another crypto exchange. BingX and OKX are not on the FCA register of authorised firms. Newcastle United has a partnership with trading company VT Markets, which offers foreign exchange and commodities trading. VT Markets has been on the FCA’s warning list of unauthorised firms since 2023.

Crypto group LAK3 Company sponsored Wolverhampton Wanderers in the 2024-25 season. LAK3 is on the FCA’s warning list. Wolves were relegated from the Premier League at the end of the 2025-26 season.

Money received “from an unauthorised firm may . . . constitute criminal property” and clubs “should ensure they understand the source of any sponsorship funds and consider whether their arrangements could expose them to financial crime risk and reputational damage”, Mackinnon-Miller wrote in her letter. The FCA reminded clubs of their “responsibilities to fans” and warned that sponsorship deals with unauthorised financial services firms “potentially expose clubs to legal liability, money laundering risks and serious reputational damage”. It added: “Where action is needed, the FCA will take it.”   

The FCA has written to Premier League clubs which it has specific concerns about. It has also written to the Premier League, which runs the competition, about its concerns with crypto sponsorship. The FCA’s intervention comes after the government said in February that Premier League clubs could be banned from accepting sponsorship from gambling companies that lack a UK licence. From the 2026-27 season, clubs have agreed to no longer feature gambling brands on the front of their shirts.

Labels:

Comments

Post a Comment

Popular posts from this blog

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...
Post a Comment
Read more

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...
Post a Comment
Read more