Arsenal FC has been asked by the Advertising Standards Authority in the United Kingdom to delete advertisements for its Socios fan token. The advertising “trivialized investment in cryptoassets…took advantage of consumers’ inexperience or naivety,” according to the ASA, and “were deceptive since they neglected to illustrate the investment’s risk.”
In July, Arsenal teamed up with Malta-based Socios to launch the $AFC Fan Token, which fans can buy by first purchasing the cryptocurrency Chiliz, which also owns Socios. Token holders can participate in fan engagement events such as voting for the song played at Arsenal’s home stadium after a victory.
The club’s website and Facebook page promotes the $AFC token. The potential capital gains tax associated with crypto trading was not mentioned in Arsenal’s fan token advertisements, which was a crucial component in the ASA’s ruling.
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“We acknowledged that the ads did not promote the Fan Tokens as an investment or financial product,” the ASA wrote. “However, the product was a cryptoasset regardless of how it was promoted, and the ads did not contain any information that capital gain tax could be payable on profits from investing in cryptoassets.”
More than 100 sports teams have partnered with Socios, including five other Premier League clubs and other soccer giants like FC Barcelona, Paris Saint-Germain and Juventus. ASA’s ruling only applies to Arsenal because the regulator received an individual complaint regarding the club.
Arsenal will have an independent review of the ruling, and a Socios spokesperson told SportTechie that Arsenal will appeal against the original complaint.
“We welcome Arsenal’s call for an independent review. This is a fast-moving area, and clarity is needed to ensure all companies can adhere to the latest guidelines,” Socios said in a statement.
Socios signed deals with 12 NHL clubs earlier this month, as well as with the New England Patriots last month, the UFC last May, and the New York Knicks and New York Rangers on Wednesday. Socios CEO Alex Dreyfus, CEO of Socios and Chiliz, said Wednesday that Socios plans to launch its U.S. app in the first half of 2022.
