Sponsorship deals between blockchain and sports companies are predicted to hit US$5 billion by 2026, according to a study by analytics firm Nielsen. According to the global report, legitimacy and fan engagement will be the key contributing factors that will impact the future success of cryptocurrency sponsorships.
The study found that 52% of esports fans and 39% of sports fans are aware of cryptocurrency, significantly higher than the general population. Furthermore, 24% of sports fans also expressed interest in non-fungible tokens (NFTs). The report predicts that cryptocurrency, blockchain, and NFT sports sponsorship investment will continue to increase by a whopping 778% compared to 2021. As the sports and crypto worlds continue to collide, here are some of the most significant recent partnerships.
Crypto.com
In one of the biggest naming deals in sports history, in November 2021, the downtown Los Angeles venue, home of the Lakers, Clippers, Kings, and Sparks, transformed from the Staples Center into Crypto.com Arena. Crypto.com paid more than $700 million for the naming rights. As part of the transformation, 3,300 square feet is dedicated to Crypto.com’s “activation space” featuring crypto-centric interactive experiences for sports or music fans. Crypto.com has also signed with the Lakers and Kings as their official crypto partner.
FTX
When Bahamian cryptocurrency exchange FTX announced a 10-year, $210 million sponsorship and naming rights agreement with leading esports club Team SoloMid in June 2021, the groundbreaking deal shocked both the crypto and esports worlds.
This wasn’t the first significant sports deal for FTX, though. In early April, the Miami Heat NBA franchise revealed its extensive $135 million partnership with the exchange for the next 19 years. Due to the partnership, the Heat will rename its home venue to FTX Arena. At the same time, the exchange will also become the “official and exclusive cryptocurrency exchange partner of the Miami Heat.”
World Mobile
World Mobile has extended its principal partnership with Fulham FC this season with the brand’s logo appearing on the sleeve of the team’s matchday shirt and the front of the training kit worn by both players and management during the Club’s 22/23 Premier League campaign. The partnership extension was announced alongside Fulham’s new training kit reveal via the club’s digital platforms on 28th July.
This extension followed a successful first year partnership for Fulham FC and World Mobile which saw strong sales for the Fulham FC merchandise in a season where the team gained promotion to the top flight of English football.
Alongside the brand exposure the partnership will also see World Mobile and Fulham create purpose-driven content designed to expand the brand’s reach across digital and social channels.
A press release announcing the initial partnership stated that approximately 20 million viewers watch the English Football League Championship across Sub-Saharan Africa, the Middle East, South Africa, Israel, Nigeria, and the United Arab Emirates, demonstrating the enormous opportunity for World Mobile in its partnership with Fulham FC. With Fulham FC promoted back to the Premier League, World Mobile will have access to an even greater platform, providing the opportunity to showcase its brand to a global audience of over 3 billion people.
eToro
Multi-asset trading platform eToro has extended its main partner deal with French Ligue 1 club AS Monaco to include front-of-shirt branding in European competition.
Having signed as the club’s main shirt partner from the 2021-22 season with rights to domestic league competition, eToro will now replace Fedcom, the sulphur and fertiliser export business, on the shirt for the club’s European nights.
Crypto companies have become a massive source of revenue for sports leagues worldwide, adding to the memorabilia and collectibles essential to sports fans. These sponsorships have not only put crypto on the map but also enabled new opportunities for sports clubs to monetize their fan base, increase fan engagement, and tap into a whole new market.
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