Sports Sponsorships Still in Play for Crypto Firms

While the cryptocurrency fallout has triggered a wave of repercussions across multiple industries, the sports sector is still hanging on to sponsorships even if some of the bigger names in digital assets have pulled out of deals.

From team uniforms and stadium naming rights to Formula One racing car liveries and Super Bowl ad spots, cryptocurrency firms have become a commonplace sports marketing partner, right up there with adverts for beer, snacks, and kicks, Bloomberg reported on Friday (Sept. 2).

See also: Crypto Sector Expected to Spend Over $160M on Sports Sponsorships in ’22

In February, before the crypto market started tanking, the industry was spending more on Super Bowl ads than airlines, quick-service restaurants and wine and spirits companies, according to IEG, a sponsorship consulting firm, PYMNTS reported. Advertising during the Super Bowl is the most expensive television advertising slot, with a 30-second spot costing as much as $7 million.

Worldwide, crypto firms have spent over $2 billion on sports advertising or sponsorships for the NBA, Major League Baseball, Formula 1, and even the Drone Racing League, according to the Bloomberg report.

The cryptocurrency platform WhaleFin has a $23 million annual contract with the Chelsea Football Club . The firm’s logo adorns the sleeves of the team’s uniforms. Previously, the club was sponsored for many years by Hyundai Motor.

Read more: Crypto Winter Chills Industry Spending on Big-Ticket Sports Sponsorships

Money from the sector has been an all-star player for sports sponsorships, with Crypto.com’s $700 million deal for naming rights to the Los Angeles stadium, formerly known as the Staples Center, being the biggest deal so far, PYMNTS reported. FTX cut a 19-year deal with Florida’s Miami-Dade County for naming rights to the former American Airlines Arena, home of the Miami Heat.

Cryptocurrency sports sponsorships have increased an estimated 7,100% in four years, with the top four crypto sports sponsorship deals worth roughly $1.2 billion combined last year, PYMNTS reported.

But as the sector took a dive in recent months, some deals have gone south. Sponsored by Voyager Digital in a multi-year deal signed last year, the National Women’s Soccer League (NWSL) is now reportedly facing financial difficulties, PYMNTS reported last month. Voyager filed for bankruptcy in July.

Crypto.com backed out of a five-year $495 million sponsorship deal with Europe’s elite soccer league, UEFA Champions League, Bloomberg reported.

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