Crypto.com Pulls Out of Deal With UEFA
- Crypto.com has struck several partnerships with sports teams.
- The crypto industry and the sporting world are forging a strong and mutually beneficial alliance.
Cryptocurrency trading platform, Crypto.com, has backed out of a sponsorship deal with the Union of European Football Associations (UEFA). The deal was said to have been worth almost half a billion dollars.
The partnership was reportedly called off after Crypto.com’s legal advisors grew concerned over the exchange’s regulatory standings in several countries, such as Italy, England, and France, which are strong points in European football.
The UEFA Champions League would have featured Crypto.com‘s brand for five seasons, beginning in 2027, at the cost of about $100 million per season if the deal had gone through. This would also have been one of UEFA’s largest Champions League sponsorships.
In response to Russia’s invasion of Ukraine, the Champions League dismissed the state-owned energy company Gazprom as a sponsor, and Crypto.com reportedly stepped in as a prospective replacement. In an effort to avoid supporting Russia’s economy during the conflict, many regions in Europe have sought alternatives to the nation’s supplies of gas and oil.
Although the sponsorship with Crypto.com has ended, UEFA still has many other sponsors. The league, to name a few, has ongoing agreements with Lay’s, Mastercard, Heineken, FedEx, and Sony PlayStation.
Crypto.com has spent millions of dollars on advertising and previously announced significant sponsorships for sporting events and teams. The popular crypto firm made the news when it announced that it had purchased naming rights for the Crypto.com arena in Los Angeles for $700 million.
The trading platform has also signed a deal to see it become a sponsor of the FIFA World Cup, which will be held in Qatar in November. Crypto.com also signed a $100 million partnership with Formula 1 racing and is a sponsor of the NBA team, the Philadelphia 76ers.
There has been a developing relationship between sports teams and crypto platforms. Several top football teams, such as PSG, Norwich, Chelsea, and Manchester City, have all struck deals with crypto firms. The height of crypto adoption in the sporting world came during this year’s Super Bowl, where several crypto platforms advertised their brands during the halftime show.
A 30-second commercial during the Super Bowl cost as much as $7 million. This year’s event featured interesting ads for crypto companies such as Coinbase and eToro. Popular stars such as Larry David and LeBron James also appeared for different crypto brands during the event.
Sporting teams are leveraging the economic strength of the crypto market to finance their brands and teams. On the other hand, crypto platforms are penetrating the sporting world in a bid to expand their base and reach more users.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
