Thursday 12th August 2021
AST has recently had discussions with Arsenal about their new partnership with Socios.com (the sports Fan Token/cryptocurrency offering) and conveyed some concerns we have asked are addressed. We also have more information for Arsenal members who will shortly be offered a fan token as part of the launch marketing strategy.
Socios.com is a cyptocurrency product yet none of the marketing we have seen so far addresses this. We have asked Arsenal to be upfront in stating this. They should also make it clear in their communications that cryptocurrency is an unregulated activity and that anyone thinking of putting any money in should firstly take financial advice and be aware they could lose some or all of their money.
We are concerned that the socios.com product, and the engagement polls that are being developed, are attractive to and could be accessed by children. Arsenal have told us they will not market to under 18s nor promote the product to them. Arsenal members who are U18 will not be offered a free token for this reason.
Socios.com have described their service as one where you buy ‘influence or a say in Arsenal’s decision-making’. This isn’t really correct in our view and based on the types of polls Arsenal have discussed with us. The engagement polls will be on minor issues like which player runs the Instagram account that week, or a picture to go on the team bus. The first poll is on what music is played at the end of the match when we win. Arsenal have assured us that they control the polls to the extent that they will be able to set its parameters and prevent sabotage by fans of other clubs.
We have been explicit that using Socios to monetarise formal engagement with supporters, or to make substantive decisions on how the club is run, would be totally unacceptable and Arsenal have reassured us this will not happen.
We remind Arsenal members who do choose to download the Socios App and use their pre allocated token that you do not have to buy any additional tokens. We would advise any supporter not to buy tokens until you have undertaken due diligence into the product.
Clearly Arsenal see this partnership as a way to raise additional funds and we understand the pressure to grow commercial income, but in taking this course we have raised genuine concerns around monetarising fan influence and player protection.
Cryptocurrencies are a high risk and unknown activity and there is a potential for this partnership to have an adverse impact on Arsenal’s reputation and the financial wellbeing of its supporters.
As this Socios partnership develops we will maintain an on-going dialogue with Arsenal to monitor issues and to input further feedback from our members. We welcome their openness to engage so far and that they have committed to ensure player protection messages are a priority.
