Crypto sponsorships with Premier League reach record high amidst gambling sponsor ban

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As a seasoned researcher who has closely followed the evolving landscape of sports sponsorships over the years, I find it fascinating to witness the surge of crypto firms into the Premier League scene. The meteoric rise of these digital assets and their influence on traditional industries like football is truly remarkable.

For the upcoming 2024-2025 soccer season, crypto firms are reported to have made a historic high of approximately $170 million in sponsorship payments to Premier League teams, according to data from SportsQuake.

Based on a Bloomberg report published on October 7th, there has been a surge of sponsorship deals with cryptocurrency companies being secured by Premier League football clubs.

With stricter rules on sports sponsorship for gambling coming into effect, cryptocurrency companies are capitalizing on this shift by establishing partnerships with football leagues for the very first time.

According to sports sponsorship agency SportQuake, the worth of sponsorship deals from cryptocurrency companies has increased approximately 30% compared to those sealed in the previous year.

Matt House, the head of SportQuake, noted a boost in self-assuredness among clubs when it comes to partnering with cryptocurrency companies. This is a shift from last year, when regulations on cryptoasset advertising became stricter.

Meanwhile, crypto firms have grown much more “comfortable about what they can do”.

House stated to Bloomberg that our strategy is simply to leverage the Premier League to convey our brand’s message, without directly promoting sales or specific products.

In July 2024, an outstanding collaboration between a cryptocurrency company and a football team unfolded as Kraken joined forces with Atletico Madrid, designating Kraken as the official cryptocurrency and Web3 partner for this Madrid-based sports club.

In this agreement, Kraken’s emblem will be showcased as the official sleeve sponsor for both the men’s and women’s teams during the upcoming season for Atletico.

As a crypto investor, I’ve noticed that recently, two different platforms in our space have made some exciting moves in the world of sports sponsorship. Last year, OKX, one of the exchanges, sealed a deal to back Manchester City, the reigning champions of the Premier League. On the other hand, cryptocurrency ecosystem Floki has just announced its support for Nottingham Forest.

In August, Crypto.com revealed their plans to support the UEFA Champions League as a sponsor.

Crypto sponsorships changing the terms of football partnerships

Despite a growing number of football clubs adopting cryptocurrency endorsements, it’s clear from the terms of their contracts that they approach these deals with a degree of prudence.

Based on legal experts at Charles Russell Speechlys, as reported by Bloomberg, newly established football businesses, including cryptocurrency companies, are obliged to pay fees in advance.

Additionally, it’s worth noting that contracts often contain a standard provision for potential damage to reputation. This enables clubs to terminate their relationship with a company if they perceive a substantial risk has arisen.

To ensure safety in transactions, parties may request a bank or parent company’s commitment (letter of credit) prior to finalizing an agreement.

Despite an increase in cryptocurrency companies securing sports sponsorships, certain football clubs remain firm in their partnerships with gambling-related sponsors.

This year, some football teams like Bournemouth, Crystal Palace, and Aston Villa have entered into fresh sponsorship agreements with betting firms, even though a ban is imminent.

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2024-10-07 13:28