Football clubs have been warned not to put their fans’ cash at risk by signing sponsorship deals with financial firms that aren't allowed to operate in the UK.
According to the FCA, a number of unauthorised firms, including crypto businesses and trading platforms, are using sponsorship to target unwitting football fans.
These unauthorised firms may be breaching UK financial services laws by providing financial services in the UK without authorisation. Fans using these firms risk losing all their money.
The FCA has written directly to football clubs, mainly in the Premier League, to warn about their relationships with these firms and remind them of their responsibilities to fans.
Lucy Castledine, director of consumer investments at the FCA, said:
'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.
'A logo on a shirt means one thing: that firm paid for it. Fans should always check the firm using our Firm Checker tool before buying a financial product and help us show the red card to those that would risk your money.'
For fans: what you need to know
It doesn't matter how prominent the branding is, which club it sponsors or how professional the app looks. If the sponsoring firm provides financial services and is not on the FCA Firm Checker[2], it is not regulated, and you will likely have no protection if things go wrong.
You should check any financial services firm before you use them.
For clubs: what the FCA expects
Sponsorship deals with unauthorised financial services firms don't just harm fans. They potentially expose clubs to legal liability, money laundering risks and serious reputational damage.
The FCA expects every UK football club to conduct proper due diligence on financial services sponsors before signing, and on an ongoing basis. Where the FCA has already identified concerns, it has spoken directly to the club. Where action is needed, the FCA will take it.
The FCA is engaging with the Government and external partners like the Premier League and the Independent Football Regulator to tackle this across the sport.
Notes to editors
- Read the letter to football clubs (PDF)[3].
- Consumers can check whether a firm is authorised by using the FCA Firm Checker[2].
- The FCA regularly publishes warnings about unauthorised firms and scams on our Warning List[4].
- In the UK, firms must be authorised by the FCA – or have their adverts approved by an authorised firm – before they can promote financial products[5] or services to consumers.
- Sports Minister Stephanie Peacock said: 'Sponsorship deals play a vital part in sustaining our football pyramid, but fans deserve to know that the companies associated with their clubs are responsible, accountable and safe to use.'