Over the last few years, there have been growing concerns about varying illicit financial risks in sports. The sports sector is exposed to corruption, bribery, and financial misconduct due to its global reach, high-value transactions, and complex ownership structures. 

This includes match fixing, money laundering, conflicts of interest, and fraudulent sponsorship deals. 

What does this mean for your business?

The sporting world, especially the football sector, now requires businesses to be more careful and to establish robust risk management strategies. 

In fact, back in May 2024, the European Council adopted a package of new anti-money-laundering rules which extended to new obliged entities, including football clubs and agents. 

These anti-money laundering (AML) regulations set tighter due diligence requirements, and the deadlines for implementation are creeping up fast. By 10 July 2025, essential AML amendments must be in place, with further deadlines in 2026 and 2027 rapidly approaching. Failure to act now could result in serious regulatory penalties and reputational damage.

Businesses cannot afford to procrastinate on these crucial changes. 

This need for heightened vigilance has brought terms like “sports exposed persons” (SEPs) into mainstream discussions among risk and compliance professionals.

What are Sports Exposed Persons (SEPs)?

Sports exposed persons (SEPs) are individuals who hold power, influence, or key decision-making roles within the sports industry, making them susceptible to bribery, corruption, and other financial crimes. 

Their exposure can stem from their direct involvement in sports, their financial or political connections (that is why some of them are also classified as PEPs or politically exposed persons), or their ability to impact significant sporting events, transactions, and regulatory decisions. As such, SEPs can become targets for manipulation by criminal organisations, corrupt officials, and unscrupulous business entities.

Identifying and assessing potential threats linked to SEPs enables organisations to implement due diligence, strengthen compliance frameworks, and proactively address emerging risks in the sports ecosystem.

Examples of SEPs 

SEPs include a broad range of individuals, such as:

Athletes and Sporting Professionals

• Professional athletes and players across all sports
• Olympic and national team athletes
• Retired athletes with ongoing influence in sports governance or media

Sports Management and Coaching Staff

• Head coaches and assistant coaches
• Team managers and directors
• Sports psychologists and performance analysts

Sports Governing Bodies and Regulatory Officials

• Members of the International Olympic Committee (IOC)
• Officials from FIFA, UEFA, the NBA, NFL, MLB, and other major sports organizations
• National and international sports federation executives
• Senior civil servants overseeing sports, media, and gambling departments
• Referees, umpires, and game officials

Club and Franchise Owners, Investors, and Executives

• Owners of professional sports teams and franchises
• Club presidents, vice presidents, and CEOs
• High-profile investors and stakeholders in major sports organizations

Sports Agents and Representatives

• Player agents negotiating contracts and sponsorship deals
• Talent scouts and recruitment specialists
• PR managers and spokespersons representing high-profile athletes

Sponsors, Advertisers, and Commercial Partners

• Executives from major sports sponsors and brands (e.g., Nike, Adidas, Coca-Cola)
• Representatives of betting companies and gambling platforms involved in sports sponsorship
• Broadcasters and media rights holders who negotiate multi-million-dollar contracts for coverage

Event Organizers and Infrastructure Developers

• Organizers of international sporting events (e.g., World Cup, Olympics)
• Executives responsible for stadium construction and renovations
• Contractors and suppliers for sporting venues

Political and Government Figures Tied to Sports

• Government officials overseeing sports ministries and national committees
• Politicians with direct financial ties to clubs, leagues, or major sporting events
• Diplomats and political figures involved in sports diplomacy and sponsorships

Family Members and Close Associates

• Family members of high-profile athletes, team owners, and executives who may act as intermediaries
• Business partners of SEPs who facilitate transactions on their behalf or with whom SEPs share beneficial ownership of legal entities
• Lawyers, accountants, and financial advisors managing SEP assets

Why should your business do SEP screening?

The global sporting industry, which is thought to be worth over $2.65 trillion, intersects with various sectors, including media, sponsorship, betting, and infrastructure development, creating multiple channels for illicit financial activity.

The industry’s reliance on large sponsorship deals, opaque ownership structures, and cross-border financial transactions further increases its vulnerability to money laundering, fraud, match-fixing, and conflicts of interest. Additionally, the rapid commercialisation of sports and the rise of digital betting platforms have amplified risk, making regulatory oversight even more challenging.

SEPs as dangerous as PEPs?

SEPs pose high-level risk on nearly equal footing with PEPs, and SEP screening is steadily moving towards becoming a staple in the future of risk intelligence and compliance. 

With the growing recognition of SEPs as a distinct risk category alongside PEPs and sanctioned individuals, banks, financial institutions, and compliance teams are increasingly required to conduct enhanced due diligence before engaging in transactions involving sports professionals, executives, and stakeholders.

Implementing robust SEP screening processes helps organisations: 

• identify potential red flags, 
• prevent illicit financial activity, and 
• ensure they are not inadvertently conducting business with high-risk individuals.

As global AML directives develop, businesses integrating SEP screening into their risk management frameworks will be better positioned to meet regulatory changes and maintain compliance.

Why is the Football Sector Especially Susceptible to Financial Risks?

Image: Bird’s Eye View of a Football Field by Erik Mclean sourced from Canva

Football’s financial ecosystem, with its multimillion-dollar transfers, complex ownership structures, and international transactions, makes it particularly susceptible to financial crime. 

One common scheme involves sports agents and club owners using player transfers to launder illicit funds. A club owner seeking to clean black-market money may orchestrate an inflated transfer fee, channeling the illicit funds through a seemingly legitimate transaction. Sports agents can also act as intermediaries, making it difficult to trace the original source of the funds. 

Beyond transfers, football governance itself poses financial risks. Owners, shareholders, and senior executives of clubs, as well as leadership figures in global sports organisations like FIFA and UEFA, hold significant influence over the sport’s financial and regulatory decisions. While many of these individuals are classified as Politically Exposed Persons (PEPs), they should also be screened as Sports Exposed Persons (SEPs) due to their direct involvement in high-value deals and their vulnerability to bribery and corruption.

The Growing Role of SEP Checks in Financial Compliance

Given the aforementioned risks, financial institutions and businesses must conduct thorough due diligence before engaging with football clubs, investors, or affiliated entities. 

In the UK, banks already apply additional background checks on SEPs as part of their Customer Due Diligence (CDD) process to assess their exposure to anti-money laundering (AML) violations and corruption. Compliance officers are required to screen for high-risk individuals, and failing these checks can result in loan denials or regulatory scrutiny.

With the introduction of new European anti-money laundering directives, SEPs are likely to be formally recognised alongside PEPs and sanctioned individuals as a high-risk category. As a result, SEP screening will soon become a standard practice for financial institutions, businesses, and regulatory bodies looking to mitigate exposure to financial crime in sports.

Reputational risks with SEPs

You might be able to pay the fines and penalties from dealing with SEPs, but your reputation might never recover.

In sports, estimates suggest that fewer than 1% of all global sports games are “fixed”, and while that sounds like a small number, it is worth noting that there are millions of games across hundreds of sports and thousands of leagues.

Sports exposed persons are more likely to receive public scrutiny, with the general public analysing everything that they do and criticising many of their choices. You only need to check the social media profiles of top athletes or coaches to see how critical the public can be, with everything from their nationality, age, income, and family called into question.

Even if there is no major match-fixing or corruption scandal, a business could still find itself being criticised after entities that endorse them express controversial views on social media, such as when Kellogg’s dropped Michael Phelps after a picture emerged of him smoking cannabis or when Nike dropped Manny Pacquiao for making derogatory comments about the LGBT community. 

What should your next steps be?

Conducting thorough due diligence is crucial when engaging with Sports Exposed Persons (SEPs).

Whether they are addressing controversial societal issues, being investigated for corruption or tax invasion, or simply rubbing certain groups the wrong way, SEPs can pose a big financial problem for businesses.

A Data Pro’s Risk Intelligence solutions go beyond basic background checks. Our expert analysts combine proprietary methodologies, AI-driven monitoring, and human expertise to track SEPs across global media, regulatory reports, legal filings, and other key risk indicators.

We provide in-depth risk assessments, ongoing adverse media screening, and actionable insights to help businesses make informed strategic decisions with confidence.

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