Restriction of crypto partnerships in sports

Crypto firms are reportedly cutting back on sports advertising and sponsorships as the crypto winter continues to bite the markets. Many companies, including and Coinbaseresponded to the sharp drop in cryptocurrency prices and trading volumes by announcing that they would be reducing the size of their workforce.

A Los Angeles Angels player. Source: screenshot, Instagram/angels

After a start to the year in which crypto companies spent a lot of money on TV ad slots, including for the Super Bowl, US outlets such as the New York Post and Wall Street Journal reported that these companies have now waived new sponsorship deals.

The Post quoted the sports management professor of theuniversity of colombiaJoe Favoritewho said he would be “shocked” if major new sponsorships happened “during the current recession.”

The same article cites “direct information sources on the matter,” according to which the crypto exchange FTX reportedly “withdrew from the discussions to provide a jersey patch” on the franchise’s uniforms Major League Baseball (MLB) Los Angeles Angels “those last weeks.”

FTX paid $135 million for the team’s naming rights last year NBA Miami Heat

The same “sources” also claimed that another deal – this one between the franchise NBAWashington Wizards and an unidentified “crypto company” – was also “rejected”.

The article notes:

“The Washington Wizards patch has been seen as particularly enviable for crypto companies as politicians and regulators overseeing space attend their games.”

Favorite adds:

“What is not spent is being restricted, as we saw during the dotcom bubble [de la fin des années 1990]†

The outlet suggests that companies are currently looking to move out of their existing deals, but warned that problems could follow if they do.

Last November, paid $700 million for the naming rights of the Los Angeles sports center where the LA Lakers and the LA Clippers

The outlet quoted sports experts as saying that if wanted to pull out of its 20-year deal with Los Angeles sports franchises, the company would have to pay “the colossal sum of $385 million”.

Chris Lencheskica former director of Comcast and assistant professor at the aforementioned Columbia University, was quoted as saying:

“There is always an opportunity to negotiate an exit. But it will be painful.” and Coinbase both spent extravagant amounts of money on Super Bowl LVI ads in February of this year, with the latter paying about $14 million for its one-minute halftime ad.

Last week, the CEO of the stock exchange BinanceChangpeng “CZ” Zhaoseemed to want to show that he had made good sponsorship and publicity decisions, as his company was still expanding despite the crisis.

Binance is the main sponsor of the Italian football club Naples† The company paid approximately $32 million to become the club’s title sponsor in October 2021.

A potential deal with a major crypto exchange remains on the table. Liverpool FC.six-time European champion, although that is becoming increasingly unlikely given the market conditions.

city ​​rival of Liverpool, Everton FC, however, seems to have been spared this trend. According to the Liverpool Echo, the crypto casino operator has signed a deal making him EFC’s main shirt sponsor, in an undisclosed ‘club record’ deal.

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