As a seasoned researcher with a background in both finance and sports, I find this trend of crypto sponsorships in professional football leagues intriguing and potentially transformative. Having closely observed the gambling restrictions and their impact on club revenues, it’s fascinating to see how the digital asset industry is stepping into the gap.
A recent Bloomberg report indicates that Premier League (PL) teams have set a new record by securing approximately $170 million in sponsorship agreements with cryptocurrency firms for the 2024-2025 season.
This increase is happening because league members are now encountering stricter regulations concerning sponsorships related to gambling, an area that has historically provided significant income for them.
Crypto Sponsorships on the Rise
According to the latest findings, some prominent sports teams have sealed significant cryptocurrency partnerships. To give you an idea, a prominent crypto trading platform like Kraken is now backing Tottenham Hotspur, Atlético Madrid in La Liga, and RB Leipzig from the German Bundesliga.
In June 2023, Manchester City, who were then the current champions of the Premier League, renewed their collaboration with OKX for another three years. This agreement is valued at approximately $70 million.
Crypto.com, another significant player in the crypto exchange market, is deeply entwined with football. This company, now known for its ownership of the naming rights to what was once the Staples Center (the home arena for teams such as the Los Angeles Lakers and Los Angeles Clippers), made headlines in August by revealing a multi-year partnership with UEFA’s Champions League, extending their sponsorship through 2027.
Not only are top-tier teams and brands in major sports leagues attracting crypto sponsorships, but even smaller clubs like Galatasaray from Turkey have joined the trend. They’ve sealed a two-year contract with blockchain analytics firm Arkham Intelligence for approximately $4 million, allowing the company’s logo to be displayed on the team’s shirt sleeves.
Gambling Out, Crypto In
These partnerships represent a significant change in the sponsorship arena for Premier League clubs, as there’s a planned prohibition of betting advertisements on jersey fronts by around mid-2026. This is on top of the 2019 ban on gambling promotions during live games, which are signaled by whistles.
As a researcher examining data from the 2023/24 sports season, I discovered that no less than eight teams had annual gambling sponsorship deals on their jerseys, raking in an impressive collective revenue of approximately $80 million per year.
In other words, as reported by Bloomberg, crypto companies are increasingly taking over the role previously held by gambling firms, due to restrictions on their sponsorship, according to Daniel McDonagh, an associate at UK law firm Charles Russell Speechlys.
Others believe this action is an attempt to enhance the reputation of the digital asset sector, which has been tarnished by negative publicity stemming from the failures of notable companies like Three Arrows Capital (3AC), Voyager Digital, and FTX.
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2024-10-08 02:46