Football clubs are influencers and have to cancel their crypto connections

In November, Manchester City FC signed a strange marketing partnership: with 3Key, a crypto company. There were understandably questions. First of all, of course: "Why?" Second, shortly afterwards: "Who?"

The justification of the city was prawned in the dead: Stephan Cieplik, one of the club's sales manager, said that they were “excitedly working with 3Key on their way to simplify the user experience of the trade analysis for decentralized finances (defi) through the power of football”. . Hardly vintage roy the rover things.

However, details could not be found: 3Key refused to answer questions about location, personnel or company registration.

A week later an update: "Manchester City is now carrying out further investigations into 3Key technology and the partnership has been suspended until all of these inquiries are satisfactorily resolved."

A pretty strange episode - but then strange crypto has become a feature of football. This weekend, when I carried out important research in front of the television, I was asked to buy "fan tokens", join a crypto banking service and an exchange where I was offered crypto derivatives and I had the opportunity to take out loans to invest in crypto. You don't have to be a crypto skeptic to worry about where inexperienced investors are sent.

A partnership with Southampton FC has led to the club for Learncrypto.com-a crypto site aimed at neophytes. The frequently asked questions from LearnCrypto argue that Bitcoin cannot be in a bladder, since the current price is higher than a previous high. It cannot be a bladder , she argues, because "you can't blow up a burst balloon again".

clubs have to take more responsibility for these partnerships. When Martin Calladine, author of the ugly game He puts it in such a way that fans “outsource part of their judgment to the commercial department of their team. And that is dangerous if clubs support unregulated products without consumer protection.”

It may sound a bit stupid for fans, but it is often much faster and easier to fix regulations than to change human behavior. Clubs have a different social role than other companies, and only last month there was a concrete indicator that the government is more likely to agree. When Chelsea owner Roman Abramovich was documented with sanctions, the association was allowed to continue operating because it was a cultural and social property.

A recently headed by Tracey Crouch, the former Minister of Sports, has proposed a new regulatory authority, precisely because clubs have a broader social importance. Officials from the Ministry of Culture have also discovered the disturbing relationship between crypto and sport. It is not surprising that clubs are concerned about the view of a mighty, invasive supervisor.

If I tried to ward off an oversight, I would start showing that I am aware of the need to exercise my influence responsibly. Step one: stop encouraging my fans to a financially dangerous sector.

Of course there is also a lot of play money in football - and that is also worrying. However, the gambling is much more regulated, and his role in football is examined from several directions - and the rules are tightened. It is also made clear to the players that gambling - what's the name of the word? - gambling .

This is not always clear with Krypto. On Monday, Andrew Rhodes, the managing director of the gambling commission, expressed his concern that Krypto is associated with "the speech of 'investment' and trade", but without the safety precautions or standards that should bring these terms with it ".

He said that the loss pattern often differs from other types of gambling. People build their investment in the crypto asset they chose over time and hope for growth. A waste of value can erase them: "If the damage occurs, it can be immediately and catastrophic, with little or no recourse."

to loosen from the simple crypto marketing cash will of course be difficult for many football managers to sell. But if nothing changes, a financial disaster for the fans and a PR disaster for the clubs threatens. Clubs are accused. And in the end you could sit an even harder breathing controller on your neck.

chris.cook@ft.com