“Cash flow issues” caused by the pandemic may have driven Arsenal into the cryptocurrency sponsorship market.
This is the view of financial expert, Dr. Dan Plumley, speaking exclusively to Football Insider on the latest controversy in the crypto world.
Arsenal announced a global partnership with fan engagement crypto-platform provider Socios in June 2021.
An investigation by Off the Pitch last Friday (March 11) alleged that Socios CEO Alexandre Dreyfus illegally manipulated the value of its currency.
Arsenal told the Daily Mail last Saturday (March 12) that they had asked Socios for further information about the allegations.
The Advertising Standards Authority has also banned two misleading promotions for the Arsenal-Socios fan token in 2021.
Plumley suggested why the Gunners got into bed with crypto firms despite widespread questions about malpractice in the industry.
“There will always be other sponsors who want to be associated with them”, the Sheffield Hallam University expert said Football Insiderit’s Adam Williams.
“Certainly short-term performance has an impact on that and they haven’t been at the top for a few years.
“But apart from that, it is a recognized club all over the world. Loads of sponsors will want to be connected with them.
“But there are also all kinds of short-term cash flow problems because of the pandemic.
“You take away a revenue stream like matchday revenue during the pandemic and everything else takes a hit.
“You are forced into a position where you have to act quickly to cover these costs. I think that’s a big part of crypto sponsor adoption.
Arsenal posted a loss of £107.3m for the Covid-hit 2020-21 financial year.
Trading revenue fell from £12m to £136m in the accounting period.
In other news, the former Premier League referee claims Leicester City star Caglar Soyuncu is set to face an extended ban as Arsenal footage is analysed.