UK Financial Conduct Authority Warns Football Clubs Over Unauthorized Crypto Sponsors
The regulator said clubs should carry out ongoing checks on financial-services sponsors or face legal, money laundering and reputational risks while exposing fans to potentially harmful products.
The UK Financial Conduct Authority has intensified its warning to football clubs, including Premier League teams, over sponsorship deals with unauthorized crypto firms and trading platforms, saying such partnerships can misuse fan trust and expose both supporters and clubs to financial harm. Lucy Castledine, the FCA’s director of consumer investments, said clubs can allow unauthorized firms to put “potentially dodgy products” in front of millions of fans, and the regulator said teams should carry out due diligence before signing deals and continue those checks on an ongoing basis. The FCA said clubs that proceed with unauthorized partners could face legal liability, money laundering risks and serious reputational damage, and confirmed it is coordinating with the UK government, the Premier League and the Independent Football Regulator. The warning comes amid broader scrutiny of crypto-linked sports sponsorships, with past disputes involving Barcelona’s short-lived association with Zero-Knowledge Proof, the fallout from FTX’s sports deals, and Canyon//SRAM’s termination of its partnership with Zondacrypto.
- Unauthorized crypto firms: Crypto businesses that are not approved or registered to lawfully offer relevant services or promotions in the UK.
- Due diligence: Checks carried out before and during a business relationship to assess legal, financial and compliance risks.
- Money laundering risks: The danger that a business relationship could be used to disguise the origins of illicit funds or create compliance breaches.