The FCA has written directly to football clubs, warning about sponsorship deals with unauthorised financial firms.
Crypto businesses and trading platforms where specifically raised as concerns, as these firms may be breaching UK financial services laws by operating without authorisation.
The FCA expects every UK football club to conduct proper due diligence on financial services sponsors before signing, with the FCA already spoken directly to some clubs where concerns were identified.
Sponsorship deals with unauthorised firms expose clubs to legal liability, money laundering risks and serious reputational damage risks that go well beyond a commercial miscalculation.
The FCA is not acting alone, engaging with the Government, the Premier League and the Independent Football Regulator to tackle the issue across the sport.
For football clubs this adds an additional layer when making sponsorship decisions, as it is not just a commercial choice anymore, the reputational risk cuts both ways.
Lucy Castledine, director of consumer investments at the FCA: “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”
The gambling ban has already reshaped the shirt sponsorship landscape, with financial services brands filling the gap. The FCA move signals that sponsorship is no longer a regulation-free zone for financial brands.
Stephanie Peacock, Sports Minister, added, “Fans deserve to know that the companies associated with their clubs are responsible, accountable and safe to use.”
As financial services brands move into football sponsorship because of the gambling ban, the FCA’s intervention signals that due diligence on sponsorship partners is no longer optional.