ASA Sustains Verdict Against Arsenal Fan Token Ads

Fan tokens- everyone is talking about them. They have become the in-thing when it comes to the sports field. If you are a sports fan you’ve probably already heard of them and seen the impact they possess on sports. As such, even sports teams have started engaging comfortably in fan tokens. Arsenal recently released an ad that promoted its fan tokens. This ad was however shot down by the Advertising Standards Authority. An appeal by the Arsenal Football club has since not gone the club's way. Let’s take a step back and look into what transpired that led to the situation Arsenal Football club finds itself in.

Bone of Contention

The Arsenal fan token allowed fans to support their club by making online purchases. You see, the concept of fan token serves to get the fans involved more in the running of the club. The fan token is meant to unlock some of the fan experiences on an exclusivity basis. Arsenal brought out a number of its big stars; Ben White, Kieran Tierney, and Callum Chambers to convey a message that read” Fans should be aware that they could lose some or all of their money invested. We advise you to spend only what you can afford and seek independent financial advice if required” Quite an honest and transparent message right? ASA doesn’t seem to think so though. According to ASA, Arsenal’s Facebook and website publicized materials that are deemed to violate its code of conduct.

The ad was deemed irresponsible in that it made it difficult for people with little know-how on the issue of fan tokens to grasp it. The ads according to ASA did not properly explain the risk associated with crypto investment. The ad did not disclose that to purchase the token the fans need to open an account then trade cryptocurrencies for them to get the tokens. The ads also did not have any information on capital gains tax that you potentially stand to pay on profits from investing in cryptocurrencies. What did Arsenal have to say on all these allegations?

Arsenal’s Response

Arsenal still maintains its innocence in the whole matter. According to them, its fan tokens were an avenue to encourage fan participation and are very different to cryptocurrencies. The club argued that it did not promote the token as a financial asset. In its defense, the club also promoted the responsible purchase of the fan token by reminding the fans that only one token was needed to be part and privy to the exclusive details of the club. The club maintains it takes responsibilities with regard to marketing very seriously.

What Next for Arsenal in Regards to Fan Tokens?

Arsenal says they will seek an independent review of ASA’s ruling to find greater clarity on the ASA’s position. It still maintains that the relationship between the fan token and cryptocurrencies was widely understood by its audiences. This has however been disputed by ASA which asserts that the token and crypto market relationship remains an entirely difficult topic to maneuver.

Tokens in Football

Tokens are firmly here in football. The biggest indication of this fact was arguably football’s greatest ever player getting involved. When Paris Saint Germain signed Lionel Messi, a one-off payment understood to be worth 1 million Euros was made to Messi by PSG in the form of fan tokens. More recently, Chelsea and England legend John Terry got involved in tokens sparking controversy with the use of the Premier League trophy as a digital asset for his non-fungible token. It is early days but it is certainly looking like fan tokens are here to stay for the foreseeable future.