Premier League’s new sponsor is Armenia-focused app with no Malta presence

Updated 1.10pm with Muscat statement

The Malta Premier League’s title sponsor is an Armenian-focused app linked to a businessman whose former company was accused of breaching anti-money laundering laws.

YoHealth recently took over the naming rights of Maltese football’s top flight for an agreement sources say is worth a “record” €250,000.

And while football club administrators have welcomed the lucrative deal, some are privately expressing concerns over reputational worries linked to the new sponsor.

The YoHealth app allows users to earn cryptocurrency and vouchers by doing simple activities like walking. But its users are based in Armenia, and it advertises products in Armenian dram or sometimes US dollars.

It is part of a group of companies co-owned by Vigen Badalyan, who acquired Maltese citizenship via the ‘cash-for-passports’ scheme.

In 2020, a company associated with Badalyan called Vivaro (since renamed SGCO), was fined €733,000 after the Financial Intelligence Analysis Unit (FIAU) concluded it had violated 10 different provisions of financial crime laws.

That fine was eventually overturned by a court after a judge ruled it was so high it amounted to a criminal penalty, and the case was halted on a legal point.

This is the second title sponsorship agreement under former prime minister Joseph Muscat’s tenure at the helm of the Malta Premier League.

The first agreement, signed last year with Azerbaijani-linked 360 Sports, was meant to last three years but appears to have been terminated early.

360 Sports – unveiled as a Malta Premier League sponsor before it had even been registered as a company in Malta – had promised to develop a ‘Super App’ for local football fans but never delivered on that promise.

The Malta Premier League did not respond to questions about why its deal with 360 Sports was ended just one year into the three-year deal. Before 360 Sports, the title sponsor of the Premier League was Bank of Valletta.

‘Monetising’ your steps

The cryptocurrency rewarded on the YoHealth app is backed by Soft Construct, a company co-owned by Badalyan and his brother.

Despite sponsoring the Maltese Premier League, the app is heavily geared to serve an Armenian audience.

Badalyan descriibes himself as a 'visionary icon' on his website.

For example, it advertises products put on sale by people whose country code phone numbers indicate they are based in Armenia – some 2,400km away from Malta.

One item, listed only as ‘Dog’ alongside a picture of a small dog, was advertised for ֏80,000 – around €180. Other products offered on the app include cars, fake flowers and electric razors.

The Malta Premier League, however, said fans “will soon be able to interact with YoHealth and engage with Malta Premier through their innovative platform.”

In announcing the new sponsorship deal, the Premier League said it was “proud to be the choice of top international brands.”

It said that through products including “YoPhone, YoBlog, and YoDoor, YoHealth will engage fans by connecting them directly to the league and its teams”.

Another company under the Soft Construct umbrella, Vbet, is already a major Malta Premier League sponsor.

The company, which gives “players the opportunity to bet on a growing range of live sports and esports markets,” has the naming rights to the Malta Premier League’s Goal of the Week.

Vbet is operated by SCGO Ltd, a Malta-based firm licenced by the Malta Gaming Authority. 

‘New deal brings in far more money than the past’

Sources from Malta’s top-flight clubs had mixed feelings about the new sponsorship agreement.

While some club administrators said they had reputational concerns over having a title sponsor that is “unknown” in Malta, others said the sponsorship agreements under the Malta Premier League umbrella are far more lucrative than what title sponsors would pay when the Premier League was directly organised by the Malta Football Association.

“I didn’t really like the decision to get YoHealth as a title sponsor. For the league’s reputation, having a sponsor of an established company like Pepsi would be better,” one high-ranking official of a Premier League club told Times of Malta.

Another official from a different club said: “If you asked me what this company is about, I wouldn’t know, other than that it’s a health app. But what I do know is that they are bringing a lot more money than the past. When BOV were title sponsors of the league, it was a meagre sum.”

Sources said BOV used to pay some €70,000 for the title sponsorship rights of Malta’s top-flight football league. That figure rose to €150,000 when 360 Sports took over the naming rights in the first season, when the MFA relinquished organising control of the league to the Malta Premier League.

This season’s title sponsorship agreement cost YoHealth €250,000, Times of Malta is informed.

Questions were sent to the Malta Premier League and Soft Construct. Both were asked why Yo Health was chosen as the title sponsor of the Premier League when its services are geared for Armenia. They were also asked if YoHealth plans to expand its services to Malta and by when.

In their reply, a spokesperson for the Malta Premier League said they are “proud” to have YoHealth as their title sponsor.

“Beyond contributing to the development of Maltese football, this strategic partnership will bring a range of fan-focused activations and surprises throughout the season,” the spokesperson said.

They said YoHealth is a “global wellness brand operating across multiple regions including the US, UAE, Armenia, Ukraine, and more, promoting a healthy lifestyle worldwide.”

“What I can confirm for now is that our fans will soon be able to interact with YoHealth and engage with Malta Premier through their innovative platform, adding a new layer of excitement to the league experience.”

Soft Construct did not reply to Times of Malta’s request for comment.

Muscat confirms reporting but decries 'half-truths'

In a statement posted to his Facebook page on Sunday, Joseph Muscat confirmed Times of Malta's reporting but insisted it contained "half-truths".

He claimed YoHealth "has already started operating in Malta and Maltese users have already received match tickets and footballs." 

He confirmed that a company of Badalyan's had been fined by the FIAU, "just HSBC, Bank of Valletta, Lombard, Fimbank and others have". 

"They had an issue, and they solved it," he said. 

Muscat said Vbet, another company linked to Badalyan, sponsored world champions Argentina as well as various clubs across Europe. 

"I see nothing wrong with a Malta-registered company that sponsors football overseas doing so in Malta. It should become an obligation," he said. 

"I hope there are lemonade companies and others that are willing to strongly sponsor local football, as this company has done. They are welcome," the Premier League chair said.