Tottenham Hotspur have announced a multi-year sponsorship agreement with online trading platform INFINOX, a deal the club described as a partnership to engage supporters through educational initiatives on online trading. However, the arrangement has drawn immediate scrutiny due to INFINOX's regulatory history and its involvement in a high-profile scam investigation.
Regulatory Violations and Financial Penalties
INFINOX made headlines last year when it became the first company in the United Kingdom to be fined under new Markets in Financial Instruments Regulation (MiFIR) rules. The Financial Conduct Authority (FCA) imposed a fine of £99,200 after the firm failed to submit 46,053 transaction reports, a breach that increased the risk of market abuse going undetected. The FCA noted that while INFINOX identified the failure through a third-party review, it did not proactively report the breach until prompted by regulators.
Links to a Major Scam Investigation
Further concerns arise from a 2021 BBC investigation titled 'Scam Land,' which uncovered how investors lost millions in foreign exchange schemes. Many of these investments were routed through a broker who utilised INFINOX's platform. Investors were reportedly unaware that INFINOX, despite having an office near the Bank of England, is based in the Bahamas and not subject to UK regulation or FCA oversight.
The broker involved, influencer Gurvin Singh Dyal, was reported to Action Fraud after an estimated £3.5 million was lost. Singh Dyal, then 28, admitted a civil charge of contempt of court and received an eight-month prison sentence, suspended for two years. The fraud investigation remains ongoing, casting a shadow over INFINOX's operations.
Club's Response and Due Diligence Claims
Tottenham's chief revenue officer, Ryan Norys, praised INFINOX for its strong international presence and focus on regulated financial services. A club spokesperson indicated that due diligence was conducted on the high-value contract, though commercial terms remain confidential, a standard practice in most industries. INFINOX did not respond to requests for comment on the matter.
Current Status and Fan Token Collapse
Currently, INFINOX's website states it does not provide services to UK clients, adding another layer of complexity to the sponsorship. Meanwhile, Tottenham's 2023 release of a 'Fan Token' has seen its value plummet from $4.67 in January 2024 to just $0.19 last week, representing a dramatic decline that may concern supporters.
This sponsorship deal highlights the challenges football clubs face in balancing commercial partnerships with regulatory and ethical considerations, as they navigate relationships with firms operating in heavily scrutinised financial sectors.
