UK Regulator Warns Premier League Clubs Against Sponsorship Deals With Unlicensed Crypto Firms

Britain's Financial Conduct Authority has warned Premier League clubs not to enter sponsorship deals with unlicensed cryptocurrency firms.

Reuters reported on June 3 that the FCA sent a letter the same day to Premier League clubs and other British soccer teams, urging them to step up scrutiny of sponsorships involving unlicensed crypto firms and exchanges. The regulator said unlicensed crypto companies and exchanges may be using Premier League sponsorships to conduct financial promotions that breach UK rules.

The FCA said it will take further action where necessary if concerns are confirmed. Lucy Castledine, director of consumer investments at the FCA, told Reuters that millions of fans trust club brands. Clubs should not allow unauthorized financial firms to exploit that trust to promote products that could put fans at risk.

Sponsorship is one of the main revenue sources for British soccer clubs. According to Deloitte, Premier League club Manchester City generated about 408 million euros in sponsorship revenue last year, more than its 332 million euros in broadcasting income.