The crypto industry is making significant strides into the sports arena, leveraging its financial muscle to promote services through high-profile sponsorships. Key players in the sector are partnering with elite football clubs and prestigious events like Formula 1 and the Ultimate Fighting Championship (UFC) as part of a strategic push to enhance their visibility and credibility.
However, the surge in crypto sponsorships has raised eyebrows among regulators concerned about transparency and consumer protection. In Spain, for instance, the National Securities Market Commission (CNMV) announced in 2022 that it would closely supervise how crypto assets are marketed during sports events. They issued warnings regarding the potential risks posed to fans and supporters’ savings, although no new regulations have yet been enacted.
The impact of cryptocurrency in sports was notably highlighted by Crypto.com’s monumental naming rights agreement with the Los Angeles Lakers. The company inked a 20-year deal worth $700 million in 2021, an impressive leap from the previous $100 million agreement for ten years. The same year, Crypto.com secured its position as the official cryptocurrency partner of the UFC through a $175 million, ten-year deal, marking a first for uniform branding among fighters. In the world of motorsport, Crypto.com’s global partnership with Formula 1, involving a five-year agreement for over $100 million, further demonstrated the intertwining of crypto and sports.
The association between crypto and Formula 1 grew stronger with Bybit becoming the official sponsor of Red Bull Racing through a $150 million deal in 2022. Similarly, the Alpine team embraced the trend by partnering with Binance in 2021.
Soccer, too, has emerged as a significant territory for cryptocurrency companies. FC Barcelona appointed WhiteBIT as its global cryptocurrency exchange partner in a three-season deal starting in 2022. Kraken will take over as Atlético de Madrid’s sleeve sponsor in the 2024–2025 season, covering both men’s and women’s teams. In Italy, Juventus is expected to benefit from a €5 million annual sponsorship with WhiteBIT from 2024–2025, while also attracting investment from Tether by selling a minor club stake.
Nevertheless, not every collaboration has been successful. Inter Milan’s sponsorship with DigitalBits, valued at €85 million, crumbled in 2023 due to non-payment issues, leading the club to pursue legal action for €30 million in damages.
The presence of cryptocurrency in football has increased further with Crypto.com’s new partnership with UEFA, marking the brand’s entry into the prestigious UEFA Champions League as its official crypto partner. This three-year deal extends to sponsorship rights for the UEFA Super Cup, establishing a precedent for cryptocurrency brands in the competition.
The post-COVID landscape offered a ripe opportunity for the crypto sector’s infiltration into sports. With clubs straining under financial losses from restricted matchday revenues during lockdowns, many sought innovative income sources. Cryptocurrency companies, flush with capital and needing exposure, stepped in to fill this gap, creating a new relationship dynamic in the sports industry.
