Restricting crypto partnerships in sports

Crypto companies are said to be cutting spending on sports ads and sponsorships as the crypto winter continues in the markets. Many companies including Crypto.com And the Queen Piecehas responded to the sharp drop in cryptocurrency prices and trading volumes by announcing that it will reduce the size of its workforce.

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

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

The newspaper quoted a professor of sports management fromColumbia UniversityAnd the Joe’s favoritewho said he would be “shocked” if any significant new care was introduced “during the current recession”.

The same article cites “sources with first-hand information on the topic,” according to which cryptocurrency exchanges FTX He reportedly “withdrew from discussions to provide a jersey patch” on the franchise’s uniform Major League Baseball (MLB) Los Angeles Angels “Those past weeks.”

FTX paid $135 million for the stadium naming rights to the team last year NBAM Miami Heat.

The same “sources” also claimed that another deal – this deal between franchises NBAWashington Wizards And an anonymous “crypto company” – also “rejected”.

Article notes:

“The Washington Wizards patch has been particularly enviable for crypto companies since the politicians and regulators overseeing the space attended their games.”

Favoretto adds:

“What is not spent will be limited, as we saw during the dotcom bubble [de la fin des années 1990]. “

The outlet notes that companies are currently looking to pull out of their existing deals, but cautioned that problems could arise if they did.

In November of last year, Crypto.com paid $700 million for naming rights to the Los Angeles Sports Center that hosts Los Angeles Lakers and the Los Angeles Clippers.

The outlet quoted sports experts as saying that if Crypto.com wanted to back out of its 20-year deal with Los Angeles sports franchises, the company would have to “push out a whopping $385 million.”

Chris Lynchskya former executive of Comcast The aforementioned assistant professor at Columbia University was quoted as saying:

“There is always the possibility of negotiating an exit, but it would be painful.”

Crypto.com and Coinbase both spent huge sums on Super Bowl LVI ads in February of this year, with the latter paying around $14 million for the half-time, one-minute ad.

Last week CEO of the stock exchange BinanceAnd the Changpeng “CZ” ChowHe appears to want to show he made sound decisions on the sponsorship and publicity fronts, as his company was still expanding despite the crisis.

Binance is the main sponsor of the Italian soccer jersey Naples. The company paid about $32 million to become the club’s main sponsor in October 2021.

A potential deal involving a major cryptocurrency exchange is still on the table. Liverpool club.the six-time European champion, although that seems increasingly unlikely given market conditions.

Liverpool rival in the city, EvertonHowever, this trend appears to have been avoided. According to Liverpool Echo, the crypto casino operator Stake.com He signed a deal that would make him the main sponsor of the EFC shirt, in an undisclosed “club record” deal.

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