According to recent reports, Crypto.com is known to have pulled out of a massive sponsorship deal with UEFA for the Champions League, a deal which was worth $495million over five seasons. Not just that, the website was set to replace gas company Gazprom as a sponsor after that deal was ditched following Russia’s invasion of Ukraine earlier this year.
In addition to this, many top football clubs are said to have signed sponsorship deals with crypto companies over the last year but as a matter of fact, the markets have taken a battering recently, with the price of Bitcoin falling 70 percent from its peak in November.
In simpler terms, as noted in a report by SportBusiness, Crypto.com pulled out of a $495-million agreement with the Union of European Football Associations, or UEFA, which was close to being signed due to its legal team citing regulatory concerns with the exchange’s licenses in the United Kingdom, France, and Italy. Had the deal gone through, Crypto.com’s branding would have been present for the UEFA Champions League for five seasons at a cost of roughly $100 million per season, ending in 2027.
It added that Crypto.com had stepped in as a potential sponsor after the Champions League dropped Russian state-owned energy firm Gazprom in response to the country’s invasion of Ukraine and had previously announced major sponsorships for sporting venues and teams and has paid millions of dollars in advertising costs. The firm had actor Matt Damon appear in its “Fortune Favors the Brave” TV spot, which launched in October.
Moreover, Cointelegraph rightly covered, In 2021, the exchange partnered with Formula 1 for its Sprint series, having previously agreed to sponsor the Aston Martin team in the racing event, and inked a 20-year, $700-million deal to rename Los Angeles’ Staples Center the Crypto.com Arena. In 2022, the exchange launched a five-year sponsorship deal with the Australia Football League for $25 million and became one of the official sponsors of the FIFA World Cup in Qatar.
Amid the recent market downturn, Crypto.com CEO Kris Marszalek announced in June that the exchange would be cutting 260 people from its corporate workforce or 5% of employees. It’s unclear if the dip in crypto prices could adversely affect the platform’s long-term sponsorship deals, it added.
Reading so far, I hope you must have gotten a fair insight into Crypto.com pulling out of a huge Champions League sponsorship at the last moment, and by now I believe you will be able to decide on your own whether or not you think it was the right thing to do and whether or not you think will be their next move.
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