UK's National Crime Agency Freezes $13.6 Million Linked to Premier League's Sorare Deal

National Crime Agency Freezes Premier League Funds

The UK’s National Crime Agency (NCA) has put a hold on $13.6 million (£10 million) linked to a sponsorship deal between the Premier League and Sorare, a fantasy soccer platform utilizing cryptocurrency. This action is part of a broader investigation into the source of the funds, aimed at examining potential connections to criminal activities.

This initial payment is part of a four-year sponsorship deal announced in January 2023, valued at approximately $41 million annually, totaling around $163 million for the term. Sorare secured rights to issue digital player cards for all Premier League clubs, with payments to clubs based on the card usage.

The NCA obtained a court order from Westminster magistrates' court in January under the Proceeds of Crime Act to prevent the dissipation of these funds while investigating third-party criminal links. The Premier League has not been accused of any wrongdoing and is seeking court modifications to the freeze order, which stays in place until September 14.

Sorare's Legal Challenges

In addition to this freeze, Sorare is currently facing legal scrutiny from the Gambling Commission for allegedly operating without a gambling license. The platform, which allows users to create fantasy soccer teams from digital cards, is under investigation to determine whether it should be classified as a gambling product. A trial is scheduled for June 2027.

Sorare maintains it is not a gambling entity, asserting that it rewards skill rather than luck. The company emphasizes that the Gambling Commission has misinterpreted its business model. Amidst rising regulatory concerns, the Financial Conduct Authority has cautioned Premier League clubs about engaging with unauthorized crypto partners, highlighting potential legal risks.