FCA Warns Premier League Clubs Over Crypto Sponsorship Legal Risks

3rd Jun 2026
Football clubs could face legal, operational and reputational risks if they partner with unauthorised crypto exchanges and trading firms, according to a warning issued by the Financial Conduct Authority (FCA). The regulator has written to football clubs over concerns that some sponsorship arrangements may help unauthorised firms gain legitimacy, promote financial services to UK consumers and potentially expose clubs to financial crime risks. The FCA has also warned that a club's own marketing activity relating to a sponsor's products or services could create additional regulatory concerns. While much of the attention surrounding the warning has focused on cryptocurrency sponsorships, the FCA's intervention raises broader questions about due diligence, financial promotions and the responsibilities clubs assume when partnering with firms operating in highly regulated sectors. Why Football Clubs Could Create Their Own Legal Exposure The FCA’s concerns focus on sponsorship arrangements that may give unauthorised firms increased credibility and access to UK consumers. In a letter to football clubs, it said there has been a rise in partnerships involving firms appearing to operate without authorisation, warning that such arrangements risk conferring legitimacy on those businesses and may expose consumers to harm. Two key legal issues were identified, relating to firms potentially providing regulated services without authorisation and carrying out unauthorised financial promotions under UK financial services law, both of which can amount to criminal offences. The concern extends beyond the conduct of the firms themselves. Sponsorship agreements can function as a distribution channel, allowing unauthorised firms to reach UK consumers through club platforms and marketing activity, which in turn may expose clubs to legal, operational and reputational risk. The warning extends to club communications, with the FCA indicating that promotional content relating to a sponsor’s financial products or services could itself amount to a financial promotion and bring those communications within the regulatory perimeter. Governance, Due Diligence and Financial Crime Risks Clubs are expected to carry out due diligence before entering sponsorship agreements with financial services firms, including checking a sponsor’s regulatory status, assessing whether its activities fall within regulated financial services, and reviewing both the FCA Firm Checker and Warning List. This expectation does not end once a deal is signed, with the letter pointing to ongoing monitoring throughout the life of a sponsorship rather than treating due diligence as a one-off exercise during negotiations. A club may enter an agreement in good faith, only for regulatory concerns about the sponsor to emerge later, in which case attention is likely to turn to the standards of due diligence applied at the outset, the approval process followed internally, and the oversight in place when the deal was agreed. The risk extends further where sponsorship funds are involved. Proceeds linked to unauthorised regulated activity or unlawful financial promotions may constitute criminal property under the Proceeds of Crime Act 2002. As a result, clubs are expected to consider the source of sponsorship funds and assess whether arrangements could give rise to financial crime or reputational risk, including any obligations to identify and report suspicious activity. Regulatory Concerns in Sponsorship Deals The FCA’s intervention extends well beyond football, reflecting a wider concern around how financial services firms and trading platforms use commercial partnerships to build credibility with large audiences. Digital asset companies in particular rely on sponsorship deals to increase visibility, but the warning highlights closer scrutiny of whether that visibility could contribute to consumer harm. These issues are not confined to sport, with similar questions likely to arise across media companies, influencers and entertainment brands where financial products are promoted through commercial arrangements. Sponsorship agreements are therefore increasingly sitting at the intersection of regulation, governance and financial crime risk rather than being treated purely as commercial deals. Reputational and regulatory exposure are becoming harder to separate, particularly where partners operate within or close to regulated financial services. The FCA has made clear that it views these arrangements as significant due to the risk of consumer harm and the potential for unauthorised firms to gain legitimacy through association with well-known brands. It has also confirmed it is actively monitoring sponsorship activity involving unauthorised firms and has engaged with the Premier League on the issue.