Key facts
- Premier League clubs have been warned that crypto sponsorship deals could become worthless within a year.
- The Financial Conduct Authority (FCA) has contacted clubs regarding potential liabilities from promoting unlicensed crypto firms.
- A new, stricter regulatory framework for crypto firms will take effect in autumn 2027.
- Fourteen Premier League clubs currently have partnerships with crypto companies.
- Clubs may face money laundering charges if they receive funds suspected of deriving from illegal activity.
- Due diligence on crypto sponsors is advised, as even past deals can incur liability.
Premier League football clubs have been alerted by the Financial Conduct Authority (FCA) that their sponsorship agreements with cryptocurrency firms could become worthless within a year due to impending regulatory changes. The FCA has communicated directly with clubs, emphasizing the potential for legal repercussions if they promote crypto or financial trading companies that are not licensed to operate in the UK.
This warning comes as the FCA prepares to implement a more stringent regulatory framework for the crypto sector in autumn 2027. Fourteen of the Premier League's top clubs, including prominent teams like Arsenal, Chelsea, Manchester City, and Tottenham Hotspur, already have existing partnerships with crypto companies. These deals were seen as a potential replacement for sponsorship revenue lost from betting brands due to incoming restrictions.
Dan Wyatt, a Partner at RPC, highlighted the challenging position clubs are in, facing a commercial gap from the gambling ban while simultaneously navigating the evolving crypto regulatory landscape. He noted that multi-year deals signed now carry the risk of partnering with entities whose regulatory status could change significantly before the contracts expire.
Under the Proceeds of Crime Act 2002, clubs could be accused of money laundering if they accept funds they suspect originated from illegal activities. Tom Jenkins, Of Counsel at RPC, stated that the FCA's warning about criminal liability signals that clubs are not considered mere bystanders but are integral to the regulator's efforts against misconduct in unauthorized crypto trading.
Clubs have been advised to conduct thorough due diligence on their current and prospective crypto sponsors to assess their risk exposure, as liability can be evaluated retrospectively even for expired agreements.