Arsenal FC score an own goal with their crypto ad

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Arsenal FC score an own goal with their crypto ad

Arsenal FC are now banned from advertising their fan tokens following a ban from the regulator. Meanwhile, crypto companies continue to seek proximity to the glitzy world of football as sponsors.

The UK Advertising Standards Authority (ASA) has banned two Arsenal Football Club adverts for its crypto-based fan token scheme, saying they misled fans about the risks of investing in crypto -currencies. Talk about getting a red card.

According to a report by “Financial news” (article behind the paywall), the regulator complained that the football club did not specify that the value of investments in the tokens could go up or down and that crypto investments were not regulated.

Say it with an NFT

The Arsenal Fan Token Program allows team loyalists to purchase non-fungible tokens using the Chiliz cryptocurrency through the NFT Socios company. Owning a token grants the right to vote in club decisions.

Such programs have their pitfalls, however, such as when clubs sell NFTs to fans with images of famous sporting moments in exchange for cryptocurrency. As the value of cryptocurrencies and tokens plummeted dramatically in May and June, many ordinary retail investors suffered heavy losses.

Ronaldo is in action

Cryptocurrencies have entered the world of football at a rapid pace in recent years. For example, two Premier League clubs, Manchester City and Wolverhampton Wanderers, have announced major shirt sponsorship partnerships with OKX and Astropay.

Even Manchester United star Cristiano Ronaldo plunged into the world of cryptocurrencies in June, despite the industry crisis, signing a sponsorship deal with the world’s largest crypto exchange, Binance.

show me the money

However, with the collapse of the crypto markets, sponsors can also become unreliable. Inter Milan entered into a partnership with Digitalbits in early July in which the blockchain company was to pay the Italian soccer club a total of 85 million euros ($87.7 million) over four years.

But there were delays with the first transfer. According to media reports, Inter Milan could now take legal action against their main sponsor and remove the company’s lettering from their shirts.

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