Cryptocurrency and sports collaboration boom
Over the past four years, cryptocurrency companies have rapidly entered the sports sponsorship market, especially in the football industry. According to research data from CoinGecko, global crypto companies have reached 33 sponsorship agreements with football clubs since 2021, a phenomenon that reflects crypto companies’ high emphasis on sports sponsorship and their desire to reach the mass market.
Sports events ranked by number of cryptocurrency sponsorships between 2021 and 2024
These sponsorship deals include world-renowned football clubs such as Manchester United and Chelsea, whose brand influence allows cryptocurrency companies to reach millions of fans. At the same time, major sporting events such as the UEFA Champions League and FIFA World Cup attract billions of viewers around the world, further increasing the exposure of crypto companies in international markets. This model of cross-border cooperation has had a profound impact on the encryption market and the football world, allowing encryption technology to enter the mainstream.
From sponsorship peak in 2021 to recovery in 2024
Number of new cryptocurrency sponsorships in sports compared to existing sponsorships 2021-2024
2021
The cryptocurrency market is enjoying a bull run, with crypto companies actively entering the sports sponsorship market, reaching as many as 33 new partnerships with major sports leagues. The year’s crypto boom has seen many companies, such as FTX and Crypto.com, become major sponsors, signing several important deals with different sports. For example, Crypto.com purchased the naming rights of the Los Angeles Lakers' home stadium "Staples Center" for US$700 million and renamed it "Crypto.com Arena", which attracted widespread attention. At the same time, FTX also sponsored the well-known e-sports team Team SoloMid for US$210 million.
2022
However, as the crypto market bubble burst, cryptocurrency market capitalization fell by 70% to 85%, which also led to a significant decline in the number of new sponsorship agreements. The collapse of FTX has hit the entire sports sponsorship market hard, and its cooperation with the Miami Heat has also been terminated. Still, there are some massive partnerships coming in 2022, such as Bybit’s $150 million partnership with Red Bull Racing and Vechain’s $100 million sponsorship deal with the UFC.
2023
The outlook is not improving as cryptocurrencies are in the midst of a deep bear market. Just eight new sponsorship deals were signed, while 14 existing deals were renewed. The impact of the crash and FTX is still being felt, with investors and companies being extremely wary of huge financial commitments. Despite this, OKX agreed to a $70 million deal with Manchester City.
2024
However, the crypto market began to show signs of recovery in 2024, with a total of 26 new sponsorship agreements reached, indicating that crypto companies are slowly returning to the sports sponsorship industry in an attempt to regain market confidence through long-term cooperation. Crypto.com has renewed its sponsorship deal with the Champions League in 2024, while BlockDAG has struck a $10 million deal with Bundesliga side Borussia Dortmund (BVB).
Number of sponsorship deals by crypto organizations 2021-2024
Football: A Major Industry for Cryptocurrency Sponsorship
Football has become the industry of choice for cryptocurrency companies for sports sponsorship. Starting in 2021, crypto companies are actively reaching cooperation agreements with major football clubs, including top clubs such as Manchester United, Chelsea, Inter Milan, Manchester City and Galatasaray. Crypto companies also sponsor world-renowned football events such as the UEFA Champions League and the FIFA World Cup, trying to reach more international audiences through the widespread influence of these large-scale events.
In 2021, cryptocurrency companies concluded 9 sponsorship agreements in the football industry, which increased to 10 in 2022, and although it fell to 3 in 2023 due to the market downturn, the number of sponsorships rose again to 10 in 2024. This shows that crypto companies’ interest in football sponsorship remains strong as the market gradually recovers.
It is worth mentioning that Crypto.com continues to expand its influence in the football industry. In addition to its cooperation with the UEFA Champions League, the company has also become an official sponsor of the FIFA World Cup and the Australian Football League, and will become the UEFA Champions League in 2024. official partner.
Number of new sponsorship contracts by sport type 2021-2024
Crypto companies’ motivations for sponsoring football
Cryptocurrency companies are keen to sponsor sports such as football for several core reasons.
These sponsorships provide crypto companies with global brand exposure opportunities. As one of the most popular sports in the world, football has a huge international audience, and by sponsoring top clubs and events, crypto companies are able to promote their brands to millions of fans.
These sponsorships can help crypto companies increase their brand legitimacy and credibility. Since the cryptocurrency market is volatile and often associated with high-risk investments and scams, partnerships with well-known sports brands can help dispel doubts and increase public trust in crypto companies.
Sports sponsorship can also promote fan participation. Crypto companies can use these cooperation opportunities to promote their own NFTs, fan tokens and other products, further deepening the interaction with fans, and prompting more people to participate in the crypto ecosystem. Through these innovative marketing tools, crypto companies can make crypto technology more accessible to traditional sports fans.
Future challenges and opportunities
Despite the increasing cooperation between cryptocurrency companies and football clubs, the sustainability of this sponsorship model still faces challenges. The instability of the market, coupled with the bankruptcy of some crypto companies, such as the collapse of FTX, has brought considerable risks to the stability of sponsorship cooperation. For crypto companies, how to maintain the stability of sponsorship relationships amidst market fluctuations and continue to enhance brand influence will be a major challenge in the future.
However, as the crypto market gradually recovers, there are still opportunities for crypto companies to achieve greater market penetration through sports sponsorship. As one of the most influential sports in the world, football remains an ideal platform for crypto companies to enter the mainstream market. As long as encryption companies can seize this opportunity and continue to expand the influence of functional brands, the future cooperation between cryptocurrency and football is expected to bring more innovation and business opportunities.
This article is reproduced with permission from: CryptoCity
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