Finance guru: Arsenal have ‘all sorts of cash problems’ amid sponsor scandal update
The “cash problems” caused by the pandemic may have led Arsenal into the cryptocurrency sponsorship market.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the latest controversy in the world of crypto.
Arsenal announced a global partnership with crypto-provider-cum-fan-engagement-platform Socios in June 2021.
An investigation by Off the Pitch last Friday (11 March) alleged that Socios CEO Alexandre Dreyfus has illegally manipulated the value of his currency.
Arsenal told the Daily Mail last Saturday (12 March) that they have asked Socios for further information on the allegations.
The Advertising Standards Authority also banned two misleading promotions for the Arsenal-Socios fan token in 2021.
Plumley suggested why the Gunners have got into bed with the crypto firms despite widespread questions about malpractice in the industry.
“There’ll always be other sponsors wanting to be associated with them,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“Granted, short-term performance does have an impact on that and they’ve not been at the top table for a few years.
“But irrespective of that, they are a club that is recognised around the world. Loads of sponsors will want to be connected with them.
“But there are also all sorts of short-term cash problems because of the pandemic.
“You remove a revenue stream like matchday income over the pandemic and everything else takes a hit.
“You’re forced into a position where you have to act quickly to cover those costs. I think that is a large part of the uptake of crypto sponsors.”
Arsenal posted a £107.3million loss for the Covid-hit 2020-21 financial year.
Commercial revenue fell by £12m to £136m over the accounting period.
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