The UK’s financial regulator has warned football clubs, including teams in the Premier League, about the risks of partnering with unauthorized crypto companies.
The Financial Conduct Authority (FCA) said some crypto firms may be using sponsorship deals to promote their services to football fans, even though they are not approved to operate in the UK. The regulator has contacted several clubs and urged them to carry out stronger checks before entering commercial agreements with crypto businesses.
According to the FCA, clubs could expose themselves to legal, financial, and reputational risks if they promote firms that fail to meet regulatory requirements.
Fans could face higher risks
The FCA said millions of football fans trust their clubs and may be influenced by the brands they see on shirts, stadium advertising boards, and other sponsorship materials.
Lucy Castledine, the FCA’s Director of Consumer Investments, warned that clubs should not allow unauthorized financial companies to use their popularity to market potentially risky products. The regulator added that consumers who use unregulated crypto platforms could lose their money and may not have access to important investor protections.
The warning comes as regulators around the world continue to tighten oversight of crypto advertising and financial promotions, especially those aimed at retail investors.
Crypto sponsorships face growing scrutiny
Crypto companies have become major sponsors in global sports over the past few years, signing deals with football clubs, racing teams, and other sporting organisations.
However, regulators are paying closer attention to these partnerships as concerns grow about investor protection and financial crime risks. The FCA said it is prepared to take further action where necessary if it believes rules are being broken.
The development could create new challenges for football clubs that rely heavily on sponsorship income. Commercial partnerships have become one of the biggest sources of revenue in modern football, often generating more income than broadcasting rights. As regulatory scrutiny increases, clubs may face greater pressure to ensure their crypto partners fully comply with UK financial rules before signing future sponsorship agreements.
In another Premier League development, cryptocurrency exchange BYDFi has signed a multi-year partnership with Newcastle United, a deal aimed at boosting the platform’s international visibility while offering new digital experiences to the team’s global supporters.
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