When football sponsorship becomes more than a commercial decision

Why clubs should review financial services sponsorships before the deal goes live

Whether they’re chasing a place in European competition or aiming for promotion from the lower leagues, sponsorship income matters to football clubs.

They play a massive part in helping fund operations, strengthening the club's commercial profile, and creating new routes to engage supporters.

Supporters often see club partnerships as a form of endorsement. A logo on a shirt, a stadium board, a social campaign, or a club email can carry trust because it is connected to the club badge.

But not every sponsorship deal carries the same type of risk. The days of local businesses having their name emblazoned on a shirt or an advertising hoarding have been replaced by a new breed of sponsors, brands that feel football is the ideal way to have their brand seen around the world.

These new types of potential sponsors can operate in financial services, lending, crypto, trading, investment, or other regulated activities.

The FCA has recently written to football clubs warning about sponsorship arrangements with unauthorised financial services firms, including crypto businesses and trading platforms. Its message is clear: sponsorship deals involving financial services firms should not be treated as a purely commercial decision.

For clubs, this means looking beyond the value of the deal and considering who the sponsor is, whether the firm is authorised where required, what products or services are being promoted, how supporters may be exposed to the sponsor, and what due diligence has been completed before and during the relationship.

And that’s why any potential deal may need more than a commercial review.

Football clubs are not ordinary advertising platforms.

The value of the sponsorship is important. So is the brand fit. So where financial services activity is involved, clubs should also consider regulatory exposure, supporter trust, financial promotions, financial crime risk, internal sign-off and evidence of the checks completed before the deal goes live.

Football clubs are not ordinary advertising platforms and that’s why the checks behind the deal matter.

Commercial value is not the only test

A sponsorship deal can look positive on paper. The fee may be strong. The brand may want visibility. The activation plan may look enticing, but clubs should also ask what sits behind the sponsor. These are some important questions any club should be asking during negotiations: 

• What activity does the sponsor carry out?

• Is the sponsor authorised or registered where required?

• Could supporters be exposed to financial products, crypto assets, trading platforms, lending or investment-related activity?

• Will the club be involved in promoting the sponsor's services?

• Could any campaign activity amount to a financial promotion?

• Who reviews the wording before it goes live?

• What due diligence has been completed?

• Can the club evidence the decision later?

These are practical questions. They are not designed to stop commercial activity. They are designed to make sure the right issues are considered before the club is publicly attached to the sponsor.

Supporter trust matters

A sponsorship deal is not only seen by the commercial team; it will also be seen by supporters and the wider world. 

Supporters are loyal to a club, so they may view a sponsor differently and more favourably when it appears through the club's channels. A product, platform or service that might otherwise be treated as a separate commercial offer can feel more credible when it is intrinsically linked to the club. 

The club should understand what supporters are being exposed to and whether any promotional material needs review before publication.

That might include shirt branding, perimeter advertising, programme adverts, website copy, app banners, social media posts, email campaigns, competitions, affiliate-style journeys or sponsor landing pages.

So even though a sponsor may be paying for visibility, a club must feel safe in the knowledge that they’d stand up to scrutiny if they were put under the microscope.
 

Financial promotions and regulated activity

Financial promotions can be a particular area of risk where a sponsorship involves financial services.

A club may not see itself as promoting financial products. It may see itself as delivering a sponsorship package.

But the practical effect of the activity matters.

If the club shares content, publishes offers, links to financial products, encourages supporters to engage with a platform or allows sponsor messaging through club channels, the financial promotions position may need to be considered.

The position will depend on the facts.

That is why clubs should make sure they’ve done everything they can to avoid risk before a campaign is live. A review before launch can help identify what needs approval, what wording should be changed, what should be avoided and who should sign off on the activity.

Financial crime and reputational risk

Regulatory risk is not the only issue.

Some sponsorships may also raise questions around financial crime, source of funds, sanctions, ownership, business model, consumer protection or reputational risk.

This does not mean a club should assume there is a problem, but it means clubs should know what checks have been completed.

Then, if concerns do arise further down the line, clubs should be able to demonstrate that they took a proportionate approach to reviewing the sponsor before agreeing the deal. That evidence can matter as much as the decision itself.

Who owns the review internally?

Sponsorship deals often involve several teams.

Commercial teams lead the negotiation. Marketing teams plan the launch. Legal teams review the contract. Finance teams assess the revenue. Senior leaders approve the deal.

But where the sponsor is involved in financial services, clubs should be clear about who asks the regulatory questions.

That might include:
•    Whether the sponsor is authorised or registered where required
•    Whether the sponsorship involves financial promotions
•    Does the supporter-facing wording need approval?
•    Is crypto, investment, trading or lending activity involved;
•    Have financial crime checks been completed;
•    Have complaints or supporter queries been considered?
•    Whether the club can evidence the review.

Without a clear understanding of everyone’s roles, these important questions can sometimes fall between teams.

The commercial team may assume legal has covered it. Legal may focus on contract terms. Marketing may focus on activation. Finance may focus on the revenue.

Good governance means spotting the right questions before the deal goes live.

An extra review doesn’t mean going into extra time

Clubs can sometimes feel that carrying out an extra review will delay commercial activity, but it doesn’t need to. A proportionate process can help clubs move faster, not slower, because it makes the decision route clearer. If a proposed sponsor operates in ordinary consumer goods or services, the process may be straightforward, but if they operate in financial services, lending, crypto, trading, investment or similar activity, the deal can be escalated for additional review before launch.

That gives commercial teams clarity and helps the club avoid last-minute uncertainty when a launch is already planned, shirts have been produced, or marketing assets are ready to go.

Pre-sponsorship kick-off checklist 

Before signing or activating a sponsorship deal involving financial services or related activity, clubs should consider:

• What does the sponsor actually do?

• Do you understand the nature of their business?

• Are they authorised or registered where required?

• Will the partnership involve financial promotions?

• What supporter-facing messaging will be used?

• Who approves website, social, email and stadium advertising copy?

• Have all financial crime and reputational checks been completed?

• Has the club recorded its decision?

• How will supporter complaints or queries be handled?

• Who owns ongoing oversight of the relationship?

The level of review should be proportionate to the deal on the table, but the questions should not be ignored.

How PPL can be one of your biggest supporters

Product Partnerships Ltd supports football clubs with consumer credit and financial promotions compliance where commercial activity intersects with financial services.

That can include reviewing sponsorship and partner arrangements, checking supporter-facing promotions, advising on financial services exposure, supporting governance and approval processes, reviewing third-party relationships and helping clubs evidence proportionate controls.

For clubs, the value is practical clarity.