Crypto Winter draw up Sports Sponsorships for Digital Asset Companies
The longer the Cryptocurrency market stays in bearish territory, the more sponsorship deals with American sports teams are being put on hold as cryptocurrency firms tighten their belts.
According to a report from NY Post, Cryptocurrency Exchange FTX has been rethinking its sponsorship plan to plaster its name and logo across Los Angeles Angels jerseys. The dramatic market volatility and slump is likely to blame for the retractions.
Another marketing deal between an undisclosed cryptocurrency firm and the Washington Wizards was axed just as the market began its violent tumble in recent weeks.
The cryptocurrency firm in question could have been FTX.US as the exchange’s Nonfungible Token (NFT) platform and the Washington, D.C.-based Wizards have an ongoing partnership. The NY Post said that the deal with the Wizards was desirable for Cryptocurrency companies looking to curry favor with the D.C. political base.
Also Read: Binance Looks To Hire 2,000 Employees Amid A Slump In The Market
Sports management professor at Columbia University Joe Favorito told the NY Post that he doesn’t see any new sports sponsorships partnerships will be announced while the market is down:
“What money hasn’t been spent already you’re going to see curtailed — just like we saw during the dot-com bubble.”
During the highs of the cryptocurrency boom, cryptocurrency firms shelled out staggering amounts of cash for sponsorship deals. Crypto.com shelled out $700 million to name the LA Lakers’ home Crypto.com Arena for 20 years. FTX also paid $135 to name the Miami Heat’s home arena FTX Arena in March 2021. Additionally, Tezos is paying $27 million annually to put its logo on Manchester United Football Club jerseys.
There have been dozens of other sponsorship partnerships between Crypto Firms and sports teams worth millions of dollars.
Also Read: Inside A Corporate Culture War Stoked By A Crypto C.E.O.
While the sponsorships for basic brand visibility are being re-thought, the deals between real-world products and NFT Firms appear to be firmly in place as they deliver more practical benefits to the parties involved.
Last week, Global beer manufacturer Budweiser partnered with the popular NFT horse racing platform Zed Run. Budweiser issued tokenized Clydesdales that users could mint, while Zed Run will launch a Budweiser-themed race track and a tournament with the highest prize of $95,000 in December.
NFL superstar Tom Brady’s Autograph NFT marketplace has a partnership with the likes of ESPN to create content for the sports TV network. Autograph launched a parallel NFT collection that was launched at the same time as the Man in the Arena: Tom Brady documentaries that first aired on ESPN on April 6.
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