Leeds United and Everton are both in for criticism as a result of their commercial dealings.
Leeds and Everton both benefit from having outsized, passionate fanbases who make the two clubs among the best supported in the country.
As well the financial boost that sell-outs at Elland Road and Goodison Park provides, there are also commercial benefits of their respective brands.
Sponsors are keen to associate themselves with the biggest and most historic clubs, and both Everton and Leeds certainly tick those boxes.
Everton’s commercial income in 2022-23, the last year for which financial data is available, stood at £39m but has previously been as high as £76m, while Leeds was £48m.
The biggest individual cash drivers are their front-of-shirt, sleeve and kit manufacturer deals, but both clubs have pluralised sponsorship portfolios across different categories.
Now, the two clubs are coming under scrutiny for one of their more controversial partnerships.
Leeds and Everton’s fan token deals
In August 2021, Leeds became the latest club to partner with Socios, a company whose blockchain-backed digital tokens can be traded and which provide a platform for fan engagement and rewards.
Days earlier, Everton had announced a partnership with the same company, which was founded in 2018 and is headquartered in Malta.
Supporters trusts of both clubs have expressed a degree of concern over these partnerships, which some detractors believed are unregulated and – like any investment – a financial risk.
When they first started trading, Everton and Leeds’ fans tokens were worth £2 each but, as relayed by financial journalist Martin Calladine via X, are now worth just £0.75 and £0.14 respectively.
The combined market cap of both tokens has fallen dramatically and, at the time of writing, totals around £4.4m.
Everton and Leeds are by no means alone in having got into bed with fan token firms.
Indeed, Calladine also highlighted that the value of every other token endorsed by English clubs – Man City, Tottenham, Arsenal, Aston Villa and Crystal Palace – had also dipped below their pre-sale price
TBR Analysis: Amid Leeds-Everton latest, what is the future for fan token sponsorship?
Many studies believe that cryptocurrency, Web3 and other digital avenues are the next big thing in terms of football sponsorship.
One group, CLV Group, believes there is hundreds of millions of untapped revenue for European clubs in this market.
As two of the most followed clubs in England, Everton and Leeds are in position to capitalise.
They should, however, do so with responsibility and with regard for the welfare of supporters.