Singaporean crypto exchange firm Crypto.com has abandoned its potential five-year sponsorship deal with the UEFA Champions League according to reports from SportBusiness. The deal is reportedly worth $495 million.
Had the deal been successful, Crypto.com would have enjoyed brand exposure from the European elite competition for five years at an annual cost of about $100 million.
The deal would have seen Crypto.com replace Gazprom. UEFA champions league canceled its sponsorship deal with the Russian energy company after Russia invaded Ukraine.
Although Crypto.com reduced its headcount by about 5% in response to the market crash, there are indications that the firm’s last-minute ditch of the $495 deal is due to regulatory concerns in Europe.
Crypto firm’s slowdown on sport sponsorship
Aside from Crypto.com, several crypto firms have been forced to hit the brakes in their sponsorship deals in the sports industry. Voyager’s bankruptcy has also left its deal with the Dallas Mavericks in limbo.
Rival exchange firm FTX reportedly pulled the plug on its jersey deal with America baseball side Los Angeles Angels.
Meanwhile, it remains to be seen if the continued market downturn that has seen several crypto firms’ assets dwindle will have an effect on its other long-term sponsorship deal in the sports industry.
Crypto.com’s sports deals
Crypto.com features prominently across several, sponsoring several individual teams as well as sports associations.
The exchange is the official exchange partner of the FIFA 2022 World Cup billed for November in Qatar.
It also became the official sponsor of the Formula Motor raising series. The exchange also boasts sponsorship deals with individual teams like the Philadelphia 76ers and PSG.
Recently, the exchange continued its remodeling plans for the Crypto.com arena after it secured 20 years of naming rights of the Staple Arena with its $700 million deal. The remodeling will see the iconic facility upgraded to improve the fan experience.
Apart from its sponsorship deals, Crypto.com have scored regulatory approval in different jurisdictions as it looks to spread its reach. It recently bagged approval from South Korean regulators to operate in the region.