- Chelsea and Manchester City among those to have partnered with unlicensed crypto firms in the past
- Ban on gambling front-of-shirt deals begins next season
The chief UK financial regulator has informed Premier League clubs they could face legal action if they sign “questionable” sponsorship agreements with cryptocurrency firms not licensed to operate in the UK.
The English top-flight has proved an attractive global platform for crypto firms in recent times, including BingX, which sponsors Chelsea, and OKX, which is Manchester City’s sleeve partner. Neither company holds a UK licence.
The Financial Conduct Authority (FCA) has written to every team in the UK, stating it has witnessed ‘an increase in football club partnerships with unauthorised firms, some of which appear to be operating unlawfully’, without mentioning specific clubs or deals.
Fiona Mackinnon-Miller, the head of the FCA department overseeing scams, promotions and consumer investments, warned in the letter that crypto partnerships could expose clubs to legal liability, money laundering risks and reputational damage.
The watchdog said it had contacted Premier League outfits where it had identified concerns and pledged to act when required, noting teams were expected to conduct ‘proper due diligence’ on financial services sponsors before signing any deal.
“Sponsorship deals play a vital part in sustaining our football pyramid, but fans deserve to know that the companies associated with their clubs are responsible, accountable and safe to use,” said Stephanie Peacock, UK sports minister.
The FCA’s intervention comes at a time when many clubs are actively seeking new partners following the Premier League’s ban on front-of-shirt betting sponsorships. Bookmakers have traditionally paid a premium for front-of-shirt exposure and several teams hope crypto could help fill the void.
The scramble to source new sponsors has created a buyers’ market which is expected to reset the value clubs can generate from their front-of-shirt asset, particularly for teams outside of the so-called ‘Big Six’. According to The Sponsor, gambling firms have spent as much as 38 per cent above the fair market rate for their front-of-shirt sponsorships.
However more affordable deals could attract sponsors from a greater variety of industries. Last month, agency executives told SportsPro that brands from the technology, pharmaceuticals and financial services sectors could be among the most active.
Crystal Palace has already sourced a new main sponsor in AI software infrastructure firm Temporal, which takes over from Asian betting firm Net88. Meanwhile, Brentford has upgraded their deal with job search specialist Indeed, while Bournemouth expanded its agreement with Vitality to include the front-of-shirt asset.
Everton are also reportedly close to finalising a new shirt partnership, with financial services firm CMC Markets closing in on a new three-year agreement worth UK£30 million (US$40.3 million).
The new rules do not stop gambling firms signing sleeve or other partnership deals, meaning spending from betting companies will not leave the Premier League entirely. Manchester United are reportedly near to agreeing a training kit partnership with Betway.
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