Circle's USDC becomes Chelsea FC's main shirt sponsor

Circle takes over Chelsea's front-of-shirt sponsorship

Circle Internet, the company behind the USDC stablecoin, has become the new main shirt sponsor for Chelsea FC. The deal marks a major moment for the crypto industry, as it is the first time a cryptocurrency financial services firm has held the principal sponsorship spot on a Premier League jersey.

The new USDC-branded kit will make its public debut in Chelsea's first home game of the season against Brighton and Hove Albion on Sunday.

Key details of the deal

• The financial terms of the agreement have not been disclosed by Circle or Chelsea.
• Earlier reports suggested the club was looking to sell the sponsorship slot for 65 million pounds a year, which is about $88.3 million.
• The spot had been empty for three years prior to this agreement.
• Circle declined to provide further comment when asked about the deal by CoinDesk.

How this compares to previous crypto partnerships

Crypto brands have appeared on Premier League kits before, but mostly on the sleeves. Exchanges like OKX and Kraken have partnered with Manchester City and Tottenham Hotspur, respectively. Reports indicated that OKX's sponsorship deal cost roughly $70 million a year when it was signed in 2023. Kraken did not release the terms of its own deal.

Regulatory context in the UK

This sponsorship comes amid heightened regulatory scrutiny. In June, the U.K.'s Financial Conduct Authority (FCA) warned Premier League clubs about working with unauthorized crypto firms. The regulator stated that such partnerships could break financial promotion rules.

Circle appears to have navigated these concerns by holding an e-money license from the FCA, which it acquired in 2016. This authorization likely distinguishes it from the unauthorized firms the FCA warned about.

Why this matters

The deal signals a shift in how crypto companies approach mainstream marketing. Moving from sleeve sponsors to principal shirt sponsors suggests that regulated crypto firms are seeking more prominent visibility in traditional sports. It also highlights the importance of regulatory compliance, as Circle's FCA authorization was likely a key factor in securing the high-profile partnership.

Sources

• CoinDesk