Socios, the blockchain-based fan engagement platform, has stopped its sponsorship payments to “intermediaries” associated with the Argentine Football Association (AFA) after allegations that only a fraction of its fees have reached the governing body.
Announcing the move on networking platform LinkedIn, Alexandre Dreyfus, the chief executive and founder of Socios’ parent company, The Chilliz Group, called on the AFA’s fellow commercial partners, adidas, American Express, Lexar, Fanatic, The Coca-Cola Company, and others to follow suit.
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Drefus said since 2021, it has sent $9 million in sponsorship fees to intermediary companies as part of its agreement as the AFA’s official fan token platform until at least this year, but only a fraction – around $480,000 – had reached the AFA.
He added: “While we do not have possession of their internal bank records to verify this exact figure, if true, it is absolutely disgusting.
“We refuse to continue funding offshore entities that have provided zero services to us. We have demanded a full audit and requested that future payments go strictly and directly to the AFA.
“We must take collective action to ensure funds go where they belong: to the sport and the institution. We must do this in the interest of the fans, the Selección, and the integrity of the football industry.”
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By GlobalDataIn a statement, Socios said they will no longer send funds through the AFA’s intermediaries, with any future payments “made in a way that guarantees the funds are transferred directly to the AFA as the legitimate rights holder, without intermediaries.
“We are particularly concerned about the use of third-party or offshore entities —including Q22 Services Limited (Guernsey), Stratega Consulting USA LLC (Delaware), Odeoma Gestión SL (Spain), and Tourprodenter LLC (Florida).
“None of these entities ever provided services to Socios.com, nor did they present, negotiate, or manage our sponsorship agreements with the AFA.”
The company lso called for the resignation or suspension of AFA president Claudio Tapia, AFA treasurer Pablo Toviggino, and other senior officials.
Originally from France and headquartered in Malta, Socios has partnered with a range of top sports properties. Along with the AFA, it has had partnerships with soccer’s Barcelona, PSG, Manchester City, Juventus, and Flamengo, as well as clubs in basketball’s NBA, American football’s NFL, and motor racing’s Formula 1.
Under its agreement with the AFA, signed in 2020, Socios said it would collaborate with the federation to “accelerate its mission to build a gamified, Web3-ready, engagement and rewards community for Argentina fans all over the world through $ARG fan tokens," with the pair working together to create reward and engagement opportunities linked to the World Cup in 2026.
However, the deal turned sour in 2022, when Socios sued the AFA for unilaterally terminating their sponsorship contract, agreed in July 2020, and entered into a similar agreement with rival Binance.
Shortly after the Binance deal was made public, Socios released a statement expressing its “absolute outrage” at the news that the governing body would allocate a rival firm rights that Socios believed it had tied up exclusively.
This included branding rights on the training kit of the national team and rights to operate the AFA’s official fan token.
Socios filed a complaint with an Argentinian national commercial court, which then issued an injunction to the AFA ordering it to recognize its contracts agreed with the firm.
The issue ended with the AFA confirming Binance would retain the national team and league branding rights, while Socios keeps the fan token element through an expanded deal.
