Tottenham supporters group expresses ‘deep concern’ over newly announced ‘fan engagement firm’ Socios partnership… claiming the crypto scheme exposes committed fans to ‘potential losses’ due to market volatility
- THST claimed that the partnership was ‘monetising fan’s support and love’
- Spurs becomes the sixth Premier League club to partner with the organisation
- Mail Sport’s new WhatsApp Channel: Get the breaking news and exclusives here
A major Tottenham supporters group has expressed their ‘deep concern’ with the club’s newly announced deal with ‘fan engagement firm’ Socios.com.
The multi-year partnership was announced on Thursday and will offer members and season ticket holders up to five free fan tokens that will ‘provide instant access to club-related polls, predictors, quizzes, and competitions’.
As fans gain points, they will be able to ‘unlock rewards and experiences’ with Tottenham, with non-members able to buy their own fan tokens for an initial price of £1.65 ($2) each.
Socios’ fan tokens are based in blockchain technology, the system used for cryptocurrencies, and non-fungible tokens (NFTs) – a unique, non-interchangeable unit of data such as a digital artwork or audio file.
The Socios app uses the organisation’s own cryptocurrency, Chiliz, for transactions, with Spurs quick to add that the cryptoasset would ‘only be required for the purchase of additional fan tokens’.
But the deal has raised eyebrows amongst the club’s supporters who were keen to highlight the volatility of the fan tokens and the cryptocurrency’s value and the monetisation of the fans.
Tottenham Hotspur Supporters Trust (THST) issued the following statement in the wake of the announcement, sharing: ‘We understand the Club needs to develop its commercial partnerships but this relationship will see engagement passed on to a third party provider enabling it to monetise fandom.
‘THST is yet again disappointed not to have been consulted on this move or to have been forewarned about this afternoon’s announcement.
‘The Club says One Hotspur Members and Season Ticket Holders will be provided with one and five free tokens respectively and the arrangement then encourages fans to enter a cryptocurrency ecosystem of which many fans will have little knowledge but will be encouraged to purchase further tokens to ‘win’ things.
‘The Club is trusted by fans and we fear many will end up in a system they do not understand that is designed to monetise their support and love for the club.
‘It is important there should be no financial or technological barriers to fan engagement yet this relationship potentially creates both.
‘THST expects the Club to safeguard our supporters against financial loss but this partnership seemingly does the opposite by exposing fans to potential losses.
‘We shall also be asking the Club to confirm that supporters’ data will not be shared with any provider without further consultation or consent.’
Tottenham will become the sixth Premier League club to form a partnership with Socios – who in 2021 raised their profile significantly by becoming Inter Milan’s shirt sponsor – but the concept of engagement through the distribution and selling of fan tokens has largely fallen out of fashion due to concerns similar to those voiced by THST.
The value of the tokens issued for Arsenal, Aston Villa, Everton, Crystal Palace, Manchester City, and Leeds have all plunged since their launch and initial spike as fans sought to accrue tokens according to cryptocurrency market webiste CoinMarketCap.
In December 2021 the Advertising Standards Authority ruled that Arsenal’s promotion of the fan token engagement scheme ‘trivialised investment in cryptoassets and took advantage of consumers’ inexperience or credulity’.
Although the club’s partnership with Socios is ongoing, in March 2022 the club is believed to have reviewed the relationship after an investigation into the Malta-based company unearthed allegations involving its chief executive Alexandre Dreyfus and claims of non-payment of staff.
Dreyfus was alleged to have advised against paying high-profile individuals in a bid to protect the value of his firm’s Chiliz cryptocurrency, but in response to the report, the company issued a statement that claimed that the Off The Pitch article didn’t reflect ‘the truth’
‘Following its publication, we have been in conversation with the journalist regarding the factual inaccuracies,’ the statement read. ‘Whilst some of them have since been removed, we remain concerned that the article does not reflect the truth of the matter.’
As Mail Sport reported at the time, a Chiliz spokesperson strongly denied that Dreyfus was implying that the company wanted to control the value of the cryptocurrency. The spokesman said the amount of money involved was not big enough to affect the Chiliz’s price.
The advisors were paid shortly after Socios management established that they were in contact with Off The Pitch.
Spurs added in their announcement that the partnership would also fund the club foundation’s Reignite programme, which delivers adult employment opportunities within Tottenham’s local community.
When contacted for comment, a Tottenham spokesperson shared the following statement: ‘The Spurs Fan Token represents an additional form of engagement and we’re offering all our Members and Season Ticket Holders free Fan Tokens at launch. Use of free Fan Tokens does not involve using Chiliz. Chiliz – a cryptoasset on the Chiliz blockchain -would only be required for the purchase of additional Fan Tokens. There is no financial commitment on the Chiliz blockchain with gifted tokens.
‘From Sunday 8 October, the marketing of cryptoasset promotions in the UK will be regulated by the Financial Conduct Authority (FCA) and subject to new rules to better protect consumers, including Fan Token holders. Socios.com, along with industry leaders, were part of industry engagement on new rules. The Club engaged with its Fan Advisory Board on the partnership in advance of (Thursday’s) announcement.’
A statement from Socios read: ‘Fan Tokens allow clubs to connect with and reward all their fans regardless of where they live. If we and clubs don’t provide a compelling offer, fans will not want Tokens – that’s why we’re working hard to ensure fans are getting the most out of their Token.
‘Token holders have met club legends, played on their club’s pitch, and received VIP tickets. All Spurs members and season ticket holder will be offered a Token for free, so they can benefit from the get-go.’
