The Financial Conduct Authority (FCA) has identified that the majority of top football clubs are sponsored by financial firms that have not been authorised to promote their services, raising concerns about consumer protection.
FCA review reveals widespread unauthorised sponsorships
In a review of 30 leading football clubs across the UK, the FCA found that 22 had sponsorship agreements with financial firms that lacked the necessary regulatory permissions to market financial products. The regulator warned that such promotions could mislead fans and expose them to financial harm.
The FCA's analysis covered clubs in the Premier League, English Football League, and Scottish Professional Football League. It found that many sponsorship deals involved high-risk investments, including contracts for difference (CFDs) and cryptocurrency products, which are often complex and unsuitable for retail consumers.
Fans at risk from unregulated promotions
According to the FCA, these unauthorised firms used football club branding to appear credible, potentially luring fans into risky investments. The regulator stated that it had already taken action against several firms and was working with clubs to improve compliance.
“Fans trust their clubs, but some financial firms are exploiting that trust to promote high-risk investments without proper authorisation,” said Mark Steward, executive director of enforcement and market oversight at the FCA. “We are committed to ensuring that financial promotions are fair, clear, and not misleading.”
Clubs urged to vet sponsors more carefully
The FCA has called on football clubs to conduct due diligence on sponsorship partners and ensure they are authorised to promote financial products. The regulator also reminded fans to check the FCA register before investing based on any club-endorsed offers.
The review follows a broader crackdown by the FCA on unauthorised financial promotions, particularly in the sports sponsorship sector. The regulator has previously warned about the risks of cryptoasset and CFD promotions, which have been linked to significant consumer losses.
In response, several clubs have indicated they will review their sponsorship policies. The FCA said it would continue to monitor the sector and take enforcement action where necessary.
