The UK’s Financial Conduct Authority has issued a formal warning to football clubs about the dangers of accepting sponsorship from unsanctioned financial firms.
The regulator published a note on its website on 3 June, highlighting how certain crypto companies and trading sites exploit sports partnerships to bypass proper regulatory approval.
The FCA confirmed it has written directly to clubs, primarily those in the Premier League, following an identified increase in such commercial arrangements.
According to the regulator, some sponsors may be providing regulated financial services without authorisation or making unlawful financial promotions, both of which are criminal offences under the Financial Services and Markets Act 2000.
Clubs that accept money from these businesses expose themselves to significant legal, operational, and reputational risks that could seriously damage their standing.
The FCA also warned that sponsorship income from unauthorised firms could constitute criminal property under the Proceeds of Crime Act 2002, raising the stakes considerably for clubs.
The letter sets a tougher standard for commercial due diligence, requiring clubs to confirm a sponsor’s regulatory status and assess whether its products involve regulated activity before any deal is signed.
Clubs are also expected to examine controls designed to block British consumers from accessing unlicensed services, including geo-fencing, disclaimers, onboarding checks, and monitoring systems.
The FCA expects clubs to consult its Firm Checker and Warning List tools, and to continue monitoring their sponsors throughout the duration of each agreement.
Importantly, the FCA stressed that a firm’s absence from the Warning List does not confirm it is operating lawfully, and clubs should seek specialist legal advice where necessary.
The warning extends to clubs’ own marketing activity, as promotional content relating to a sponsor’s products could itself breach financial promotion rules.
The FCA said it is actively monitoring arrangements that may facilitate unlawful activity or increase consumer harm, while engaging with the government, the Premier League, and the Independent Football Regulator.
The FCA warning arrived less than four weeks after gambling operator Entain made a separate push, asking the football regulator on 7 May to prevent English clubs from accepting sponsorship from unlicensed gambling operators.
Entain, the owner of Ladbrokes and Coral, said six Premier League clubs were sponsored by operators accepting bets from British consumers without a licence, committing an offence under the Gambling Act 2005 each time a British bet is taken.
Entain cited research estimating that 1.5 million Britons stake £4.3 billion annually with unlicensed gambling sites, which it said account for 9% of the UK gambling market.
The company also urged Premier League chief executive Richard Masters to introduce a voluntary ban on such sponsorships ahead of the 2026/27 season.
