The UK’s financial regulator has warned Premier League clubs that they could face legal action if they sign dubious sponsorship deals with cryptocurrency companies that are not licensed to operate in the British market.
Some of the top English teams have attracted global crypto platforms, including Chelsea, which has a deal with BingX, and Manchester City, which has OKX as a partner. Neither company is licensed in the UK.
The Financial Conduct Authority (FCA), the financial sector regulator, sent a letter to all teams warning that it has recorded “a growth in partnerships with unauthorized firms, some of which are operating illegally,” without mentioning specific clubs or businesses.
It warned that these clubs could face legal liability, money laundering risks, and reputational damage from these deals, according to the document signed by Fiona Mackinnon-Miller, head of the FCA’s fraud, consumer promotion and investment department.
Fans Unprotected
The financial regulator reported that it has contacted Premier League clubs, conveying its concerns, and promised to act when necessary. It expects teams to conduct “proper” due diligence on financial service providers before finalizing any sponsorship deals.
It also issued a warning to fans: “Fans who use these services risk losing all their money.” In other words, if the sponsoring company offers financial services and is not on the FCA’s company verifier, it is unregulated and likely will have no protection should something go wrong.
Lucy Castledine, FCA’s director of consumer investments, said: “Millions of football fans trust their club’s badge. Clubs should not allow unauthorized financial companies to exploit this loyalty by placing potentially dubious products in front of millions of fans. A logo on a shirt means one thing: that company paid for it.” Fans should always check the company using our business verification tool before buying a financial product and help us punish those who put their money at risk.”
The UK Sports Minister reminded that sponsorship contracts play a “vital role” in sustaining the football structure. “But fans deserve to know that the companies associated with their clubs are responsible, transparent and safe,” said Stephanie Peacock.