Crypto.com pulls out of Uefa Champions League deal
Image credit: fingaz.co.zw
Crypto.com has cancelled its sponsorship of the Champions League with Uefa. The deal, worth £428 million over five seasons, is believed to have fallen through “at the last minute” due to worries about tighter cryptocurrency regulation.
After Uefa severed ties with the Russian energy supplier due to the conflict in Ukraine, the bitcoin trading website was set to take its place.
It is believed that the worries are related to prospective legal trading limitations.
With more and more confirmed football sponsorship deals, digital assets have transitioned from the periphery of the economy to the centre during the last few years.
While Manchester City has OKX as their training kit partner, Chelsea and Atletico Madrid have both secured agreements with trading site WhaleFin.
Before, Bitcoin served as Watford’s club sponsor and was accepted at the facility.
When he transferred from Real Madrid to DUX International de Madrid last year, Spanish striker David Barral made football history.
Uefa claims that the bitcoin industry has helped clubs make up for lost revenue due to the pandemic.
In spite of these lucrative sponsorship agreements, Bitcoin is down about 70% from its historical peak in November 2021; Ethereum is down more than 70%; and some cryptocurrency exchanges have mass-fired their staff.
According to CEO Kris Marszalek, Crypto.com let off over 5% of its workforce in June, or around 260 people.
With over 10 million users worldwide, Crypto.com is the cryptocurrency platform with the fastest growth.
Additionally, the site, which has its worldwide headquarters in Singapore, has sponsorship agreements with the Formula 1 World Championship, the Ice Hockey World Championship, and the Qatar 2022 FIFA World Cup.
Additionally, it has a number of significant sponsorship agreements in American sports. To cap off its marketing initiatives earlier this year, a commercial with basketball legend LeBron James aired during TV coverage of the Super Bowl.
According to SportBusiness, which broke the story first, regulatory concerns in European nations may have contributed to the collapse of the Champions League deal with Crypto.com. These concerns could have affected the company’s ability to trade and operate legally.