FCA Warns Football Clubs Over Unauthorised Crypto Sponsorships

The UK Financial Conduct Authority (FCA) has sent letters to football clubs, including Premier League teams, warning that sponsorship deals with unauthorised crypto firms may breach financial services laws and expose clubs to legal, operational, and reputational risk. The regulator said several partnerships appear to involve firms that provide regulated services without proper authorisation or issue unlawful promotions – both criminal offences under UK law.

The Regulatory Warning and Its Scope

The FCA’s letters, signed by Fiona Mackinnon-Miller, state that some crypto firms are using high-profile football sponsorships to bypass regulatory oversight. The regulator has seen an increase in partnerships with firms that appear to operate unlawfully. Mackinnon-Miller wrote that those actions are criminal offences under UK financial services laws and urged clubs to review existing agreements and ensure compliance with financial promotion rules.

Fan Protection and the ‘Firm Checker’

Lucy Castledine, director of consumer investments at the FCA, addressed fan protection directly. She said unauthorised firms, including crypto businesses, may breach laws by offering services without licensing. Clubs should not allow unauthorised firms to exploit fan loyalty.

Castledine urged supporters to check the regulator’s Firm Checker before purchasing any financial product. The warning is a direct signal that the FCA expects clubs to vet sponsors, not just collect cheques.

Why Clubs Are Vulnerable

Sponsorship income has become a critical revenue stream for top clubs. Deloitte reported that Manchester City generated $475 million in 2025 from commercial revenue, compared with $386 million from broadcasting rights. This revenue shift has made clubs attractive targets for crypto firms seeking mainstream exposure.

The Revenue Shift and Crypto’s Appeal

Commercial revenue now exceeds broadcasting for elite clubs, making sponsorship deals essential to financial performance.
Crypto firms see football as a gateway to mass-market retail investors, especially younger demographics.
The FCA’s concern is that unlicensed firms use the credibility of a club badge to bypass normal regulatory scrutiny.

Timeline and Coordination

The FCA confirmed it is coordinating with the UK government, the Premier League, and the new Independent Football Regulator to address unauthorised financial services marketing across professional football. Sports Minister Stephanie Peacock supported the regulator’s position, saying sponsorship deals help sustain the football pyramid but fans deserve to know associated companies are responsible and accountable.

Previous Actions and Ongoing Investigations

Affected Assets and Market Exposure

The warning directly impacts clubs that have signed or are considering sponsorship deals with crypto firms. It also affects the crypto firms themselves, particularly those offering regulated services without authorisation. For traders and investors, the key assets to watch are:

Fan tokens issued by clubs – these are already under regulatory scrutiny and may face additional restrictions.

Crypto exchange tokens used by sponsors – any enforcement action could trigger sell-offs.

UK-based crypto brokers – the FCA’s heightened focus may lead to tighter licensing requirements.

For a broader view of how regulatory shifts affect digital asset markets, see our crypto market analysis. For specific broker exposure, check our list of best crypto brokers.

What Would Reduce the Risk

The risk to clubs and their sponsors would decrease if:

Clubs conduct thorough due diligence using the FCA’s Firm Checker and terminate unauthorised partnerships.

Crypto firms apply for and receive proper FCA authorisation before signing sponsorship deals.

The Premier League and Independent Football Regulator issue clear guidance on acceptable sponsorship criteria.

What Would Make It Worse

The situation could escalate if:

The FCA names specific clubs or firms in enforcement actions, triggering reputational damage and potential fines.

A high-profile fan token collapses or is linked to fraud, accelerating regulatory crackdowns.

The government introduces legislation that bans crypto sponsorships entirely, as some lawmakers have hinted.

The FCA’s warning is a concrete escalation, not a general advisory. Clubs that ignore it face legal exposure. Crypto firms that rely on football sponsorships for credibility face a narrowing window of regulatory tolerance. The next catalyst will be any enforcement action or public naming – that is when market participants should reassess exposure.

For context on how the UK’s stablecoin rules could affect the broader crypto landscape, read our analysis: UK stablecoin rules risk market lag, House of Lords warns.