June 3 – Premier League clubs have been warned against concluding sponsorship deals with crypto companies that are not licensed in the United Kingdom.
In a letter, the FCA (Financial Conduct Authority), the United Kingdom’s financial regulator, cautioned clubs against “questionable partnerships” with crypto companies and trading firms and highlighted club’s legal liability.
The FCA said it had seen “an increase in football club partnerships with unauthorised firms, some of which appear to be operating unlawfully”.
The FCA also said such deals pose a danger to fans.
“A number of unauthorised firms, including crypto businesses and trading platforms, are using sponsorship to target unwitting football fans. Fans using these firms risk losing all their money.
“If the sponsoring firm provides financial services and is not on the FCA Firm Checker, they are not regulated. You will likely have no protection if things go wrong,” the FCA said.
The FCA did not single out individual clubs or crypto companies. However, a number of Premier League clubs have built deep ties with Crypto companies.
In April, Chelsea extended its sponsorship agreement with crypto exchange BingX. Manchester City has a shirtsleeve sponsorship deal with OKX, another crypto exchange. Both BingX and OKX are not on the FCA register of authorised firms.
VT Markets sponsors Newcastle United, but the trading company has been on the FCA’s warning list of unauthorised firms since 2023.
The FCA said: “They potentially expose clubs to legal liability, money laundering risks and serious reputational damage. The FCA expects every UK football club to conduct proper due diligence on financial services sponsors.”
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