The United Kingdom is on a mission to consolidate its role in the global cryptocurrency market with the implementation of a clear regulatory framework. The government aims to balance innovation and consumer protection, consolidating the UK as a global hub of digital finance.
The plan is to focus on stablecoins, staking services and trading platforms, all of which could have a significant impact on the professional football industry. The initiative comes at a crucial time. The cryptocurrency sector is transforming not only finance but also adjacent areas industries such as football. However, without a clear regulatory framework, the UK risks losing ground to the United States and other European Union nations, which are already devising regulatory strategies.
But what will really change with the arrival of UK regulations? Tickmill, a leading online trading broker, has analysed the impact of blockchain in sports. They have attempted to link the current situation to the prospects of an increasingly regulated market and found that football is leading the way in the adoption stakes.
Blockchain-based technologies have already redefined the relationships between clubs, fans and cryptocurrency platforms in several sports. Football has taken this to another level. For example, 14 of the 20 Premier League clubs have entered into agreements with crypto companies for a total value of £130 million this season.Only six clubs – Liverpool, Brighton & Hove Albion, Brentford, Fulham, Ipswich Town and Bournemouth – still don’t have a cryptocurrency sponsor or partner.
Partnerships may also include spin-offs on ‘fan tokens’ – digital assets that allow fans to actively participate in the clubs’ lives. Via crypto-based tokens, supporters can influence decisions, access exclusive events and receive unique rewards, strengthening their bond with the club.
Barcelona’s BAR token is among the ways blockchain has manifested itself in football. The token allows fans to vote on aspects of club management. Elsewhere, holders of Paris Saint-Germain’s PSG token holders had a say in choosing the club’s inspirational message inside the team’s dressing room.
Other noteworthy partnerships between crypto and football include the sponsorship of the 2022 FIFA World Cup in Qatar, while multiple other cryptocurrency platforms have gained a strong foothold in football, which has helped to introduce millions of fans to crypto products.
Intriguingly, crypto has also started to influence transfer business and player contracts, albeit only on a small scale at this moment in time. One of the most infamous recent examples of crypto’s link with football was WAGMI United’s takeover of Crawley Town in 2022. The company claimed they wanted ‘to reinvent broken legacy sports management models’ and ultimately take the club to the Premier League.
While their involvement with Crawley did not meet with widespread approval, winning promotion to League One in 2023/24 changed the perception of the company. Whether the long-term aim of reaching the top flight is achievable is another matter, particularly with the club looking likely to make an immediate return to League Two.
However, given that the relationship between crypto and football is in its early stages, it is likely that we have only scratched the surface of what these unlikely bedfellows may achieve together.
The future impact of the introduction of regulations is impossible to predict, and it will be intriguing to see how this unfolds over the next few years. While promising greater transparency and protection for consumers, regulations could also mean new constraints for crypto companies and burden them with more red tape. This could force them to review their strategies – including their involvement with football.