Premier League faces criticism over Sorare partnership deal

Sorare, a non-fungible token (NFT) fantasy game and marketplace, announced a multi-year partnership deal with the English Premier League. However, the deal has been criticized, with the critics citing the unregulated nature of the digital asset industry and the lack of safeguards to protect investors.

Premier League partners with Sorare

Despite the bear market and the string of negative news that rocked the crypto industry in 2022, the UK Premier League decided to go ahead with plans to bring digital assets closer to fans. The multi-year licensing contract with Sorare will enable Premier League fans to build custom teams that they can use to generate rewards.

“Football fans around the world can now collect, buy, sell, and trade officially licensed digital cards featuring every player from across the Premier League’s 20 clubs,” the announcement said. The Chief Executive of the Premier League, Richard Masters, noted that the deal would see the Premier League having a better way of engaging with fans.

The deal reportedly includes a four-year licensing contract. Neither the Premier League nor Sorare has disclosed the deal’s financial terms. However, the deal allows the Premier League to have an option of acquiring a stake in Sorare.

Sorare had a $43 billion valuation in 2021 after closing a $680 million funding round led by SoftBank. Some of the features that will be introduced by Sorare: Football to mark this partnership deal include draft-based gameplay, league-specific competitions, and more.

Premier League faces criticism over Sorare partnership

The English Premier League is facing criticism over this partnership deal. The Football Supporters Association has called out the most watched soccer competition, with the spokesperson saying that crypto assets lacked an adequate regulatory framework. Moreover, there were no protections for the people investing in these digital assets.

The Football Supporters Association also called out the clubs and the players promoting digital assets, saying that they failed to conduct any due diligence, exposing their fans to risks of financial losses.

The spokesperson said that the Football Supporters Association would work with regulatory agencies, legislatures and other relevant bodies to protect football fans. The Premier League has yet to respond to the criticism, but Masters opines that the deal with Sorare is aimed at boosting fan engagement.

This criticism comes when the cryptocurrency industry has faced turbulent times. The prices of most digital assets plunged last year because of the intense bear market that rocked the industry at the time. The demise of top projects like Terra and the bankruptcies of leading crypto companies like FTX, Celsius, and Three Arrows Capital resulted in notable losses for investors in the industry.

However, Sorare was among the few crypto companies that reported gains in 2022. During the year, Sorare’s revenues increased by 50% in comparison to 2021. The total user spending on the platform before deductions came in at $541.2 million in 2022, compared to $292.3 million in 2021.