Dr Dan: Man City at ‘big risk of losing money’ after £262m BBC claim
It is unclear how much income Premier League clubs like Man City are making from cryptocurrency partnerships.
So says finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about City’s role in the rapidly growing crypto-football industry.
City courted controversy when they were forced to abandon their deal with crypto partner 3Key because of concerns about the company’s legitimacy.
Analysis from the BBC published last Friday (10 December) estimates fans around the world have spent over £262million on virtual currency.
It is also understood that City are one of the biggest sale generators on a club-by-club basis.
Plumley theorised about the future of crypto sponsorship in football and the risks associated for both clubs and punters.
“It’s hard to forecast what is going to happen,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“There is always something that steps in to fill the void. We have seen increased regulation on alcohol and tobacco, and now it’s gambling.
“I think that if we remove gambling, something else will come in. That could be cryptocurrency or NFTs, or even something like eSports.
“These are the trends in the market. It takes time to determine whether associations with various sponsors are good or bad.
“We don’t know what clubs like Man City are taking from the deals. That’s a bit of a puzzle. The clubs can’t sell loads of these things as that crashes the price.
“If you’re buying into these things, the narrative is you’re doing so to get various perks, ticket draws etcetera. But there is a big risk of losing money.”
The Times reported on 19 November that the Premier League is set to investigate its clubs’ relationship with crypto providers.
City rely heavily on their commercial income and raked in £246.3m from their various partnerships in the last financial year.
In other news, ex-Fifa referee fumes as “pretty awful” Bernado Silva footage emerges from Man City.