UK Regulator Warns Premier League on Crypto Sponsorship Risks and Liabilities
Premier League Clubs Face Scrutiny Over Crypto Sponsorships
Regulatory Warnings and Legal Risks
LONDON, June 3 (Reuters) - Britain's financial regulator has warned soccer clubs including those in the Premier League that sponsorship deals with unauthorised crypto firms and trading platforms could expose them to legal liability, money laundering and reputational damage.
The Financial Conduct Authority said on Wednesday that unauthorised firms may be breaching UK financial promotion rules by using high-profile sponsorships to target soccer fans despite not being allowed to operate in Britain.
FCA's Communication with Clubs
The markets watchdog wrote to Premier League clubs and others, raising concerns about existing partnerships and urging them to step up checks.
"Millions of football fans trust their club's badge. Clubs should not let unauthorised financial firms exploit that loyalty by putting potentially dodgy products in front of millions of fans," said Lucy Castledine, the FCA's director of consumer investments.
Potential Consequences for Clubs and Fans
The FCA said it had already contacted clubs where it had identified concerns and said it would take action where needed, adding that fans who were using unregulated firms risked losing all their money and were unlikely to have access to regulatory protections.
Industry Response and Financial Impact
Sports minister Stephanie Peacock said sponsorship income was vital for the industry but fans "deserve to know that the companies associated with their clubs are responsible, accountable and safe to use."
Importance of Sponsorship Revenue
Sponsorship and commercial deals are a crucial cash stream for clubs, overtaking broadcasting as the dominant source of revenue, with Manchester City generating €408 million ($475 million) in 2025, surpassing its broadcast revenue of €332 million, according to Deloitte.
($1 = 0.8591 euros)
(Reporting by Sam Tabahriti; Editing by Hugh Lawson)
