Tezos

Arkham

when

Crypto firms have spent up to £130 million ($170 million) on sponsorships in the English Premier League (EPL) for the 2024/25 season. The data from sports sponsorship agency SportQuake highlights a growing relationship over the last few years.According to <a href="https://www.bloomberg.com/news/articles/2024-10-07/crypto-sponsorship-of-premier-league-clubs-on-rise-kraken-okx-strike-deals" rel="noopener noreferrer nofollow">SportQuake</a>, the rise in sponsorship deals between crypto companies and EPL teams marks an attempt by the crypto industry to re-establish a relationship with sports teams and rebuild the sector’s legitimacy among retail customers. This group of users has been more than skeptical after previous bankruptcies that left investors with millions in losses.A look at the chart shows that there has been a massive increase in the value of crypto sponsorships in the EPL over the last five years, going from £13.8 million in the 2020/21 season to £129.7 million in 204/25. However, the number saw a more sizable jump in the 2022/23 season when it rose from £43 million in the previous season before falling to £101.5 million in the 2023/24 seasonCrypto companies are leading the sponsorships, including centralized exchanges such as Kraken and OKX, which sponsor Tottenham and Manchester City, respectively. Layer-1 blockchain Tezos is equally a sponsor for Manchester United, while digital assets platform Whale Fin is a sleeve sponsor for Chelsea football club.However, crypto companies are not only splashing money on the EPL teams. Kraken is also a sponsor for RB Leipzig in the German Bundesliga and Atletico Madrid in the Spanish La Liga, while Crypto.com is a sponsor for the premier continental competition, the UEFA Champions League, until 2027.<h3 id="span-style-font-weight-400-crypto-firms-are-replacing-gambling-companies-as-major-sponsors-span">Crypto firms are replacing gambling companies as major sponsors</h3>The rise in crypto-related sponsorships comes as the EPL organizers try to ease out gambling sponsorships and tighten the rules around acceptable gambling partnerships between EPL clubs and betting companies.There will be a ban on <a href="https://www.premierleague.com/news/3147426" rel="noopener noreferrer nofollow">betting sponsors</a> being on the front of club jerseys starting from the end of the 2025/26 season.Since gambling companies account for about 11 of all 20 EPL teams’ matchday shirt sponsors, the ban is expected to have a major financial impact on these sports teams, which need the money. However, it now appears that crypto companies will easily slot in as replacements for the betting sponsors, particularly as the industry continues to gain more legitimacy and mainstream adoption.Crypto companies have already shown that they are open to major sponsorship deals, with many usually focusing on sports such as Formula One, basketball, and gridiron football. However, football offers a cheaper alternative to reach a wider audience and push their brands, making the sport attractive enough for sponsors.Blockchain analytics firm Arkham Intelligence recently signed a 2-year sleeve deal with Turkish club Galatasaray valued at just €1.8 million euros ($2 million). This represents a significantly smaller amount than it would have spent on a similar deal with a Formula One team. Crypto.com’s partnership with Formula One was reportedly worth $100 million in 2021.<h3 id="span-style-font-weight-400-sports-teams-are-extra-cautious-with-crypto-companies-span">Sports teams are extra cautious with crypto companies</h3>So far, teams in the EPL appear to have embraced sponsorship deals from crypto companies, focusing simply on providing them with brand awareness without any direct marketing efforts. However, these clubs seem to have some degree of wariness in their dealings with these companies.Industry experts note that most clubs sign deals with crypto companies that require the companies to pay the entire sponsorship upfront, as opposed to spreading payment throughout the lifetime of the deal, as is usually the case with most industries.This is not entirely surprising, given how companies such as FTX had sponsorship deals with sports teams when it collapsed in 2022. In some cases, sports teams have asked for a bank guarantee or letter of credit before even agreeing to such sponsorships.However, these clubs are concerned about more than just the payment. Many also include clauses that allow them to terminate the deal for reputational harm if the company faces a significant issue that affects its image.

Crypto sponsorships in EPL rises to £130 million, signaling industry’s legitimacy efforts

Table of Contents

Cryptopolitan_News

Other articles published on Oct 7, 2024

2.07 Billion Dogecoin in One Week – What's Happening?

Bitcoin plans to continue its correction to $57,000. What's next?

Marathon’s Anduro to Launch Bitcoin-Based Real-World Asset Tokenization Platform

Bitget Token BGB Plummets Over 50%, Echoes Past OKB Crashes

Shiba Inu on Verge of Exiting Trillionaires Club, Max Keiser Claims XRP Rally Never Going to Happ...

DOGE Bull Run Possible as WIF Faces Key Resistance: Analyst

Join our free newsletter for daily crypto updates!