Crypto.com backs down from the UEFA deal in the very last minute according to recent rumors. The promotional arrangement to have the company’s name emblazoned on the UEFA Champions League soccer competition, has fallen through.
According to Sport Business, the contract, worth little more than $100 million per year, was considered but never finalized.
Big Blow For The UEFA
Crypto.com’s UEFA five-season agreement would have cost the cryptocurrency exchange $99 million per year, or around 100 million euros every season, for a total worth of $495 million.
Before discussions with Crypto.com began, UEFA was backed by the Russian natural gas firm Gazprom; however, the organization canceled the sponsorship relationship in March in the aftermath of Russia’s invasion of Ukraine. Crypto.com was expected to take over for Gazprom.
Despite the fact that its association with Crypto.com has ceased, UEFA still has a large number of other sponsors. According to its website, the league has ongoing deals with Lay’s, Heineken, Mastercard, FedEx, and Sony PlayStation, to name a few.
Other Crypto.com Sponsorship Deals
Crypto.com backs down from the UEFA deal, but still has a big interest in sport sponsorship deals.
The move follows the company’s formal approval as a FIFA World Cup sponsor in March, as well as numerous other daring promotional stunts in the sports business.
Last year, the Singapore-based company was a founding partner of the Angel City Football Club, a Los Angeles-based women’s soccer club. It also became the UFC’s only global “fighting kit” partner, which means that fighters appearing in UFC events will wear clothing with its insignia. Most importantly, Crypto.com agreed to rename the Los Angeles Staples Center the Crypto.com Arena for $700 million.
People appear to be hesitant to invest large sums of money on sports advertising agreements in the midst of a bear bitcoin market.
“Cryptocurrency companies are currently analyzing the ROI of their sponsorship deals,” claimed Sunny Singh, CEO of the media partnerships firm Van Hawke, who spoke with The Block. “Fees paid in cryptocurrency have exceeded market rates.”
Singh stated that some cryptocurrency-related sports advertising deals that were in the works had been canceled.
The Venture Into Sports Continues
In addition, the corporation secured a $100 million agreement with Formula One racing and is a sponsor of the NBA team Philadelphia 76ers.
Meanwhile, Crypto.com is suing a woman for accidentally transferring her $10 million. Furthermore, layoffs have plagued the exchange, with a smaller first wave in June and a larger second one this month.
However, it looks like the corporation is investing in expanding its market. This month, Crypto.com was granted permission to conduct business in the United Kingdom. It also intends to expand in South Korea.
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