Between 2021 and 2024, 92 cryptocurrency sponsorships have been signed in the sports field.
Author: Prem Reginald, Coingecko
Translator: Deng Tong, Golden Finance
The world of cryptocurrency and sports sponsorship has gone through a wild journey. During the bull market in 2021, cryptocurrency companies plunged into sponsoring some of the biggest sports teams and events. However, when the market fell into trouble in 2022, the sponsorship volume began to decrease, wiping out 70-85% of the cryptocurrency market value. Additionally, the collapse of FTX, which was once a major player in sports sponsorship, further accelerated this decline. But has the industry regained momentum in 2024?
How many cryptocurrency sponsorships are there in the sports industry?
As of September 2024, 92 cryptocurrency sponsorships have been signed in the sports field between 2021 and 2024. The following are detailed lists of sponsorship agreements signed in each year.
2021: Prosperity of Cryptocurrency Sponsorship
2021 marked the peak of cryptocurrency involvement in the sports field, thanks to the bull market. Various sports leagues reached a total of 33 new sponsorship agreements. This accounted for 35.9% of all sponsorship agreements signed between 2021 and 2024. FTX and Crypto.com were major contributors, with each securing 5 or more new agreements throughout the year. The biggest deals included Crypto.com's acquisition of the naming rights for Crypto.com Arena at the Staples Center for $700 million and FTX's striking $210 million sponsorship deal with the esports team, Team SoloMid.
Other major partnerships included Zytara's $100 million sponsorship of Inter Milan and FTX's $135 million deal with Major League Baseball. These deals were strategic moves by cryptocurrency companies to gain mainstream attention and adoption.
2022: Post-Collapse
In 2022, the cryptocurrency bubble burst, leading to only 25 new transactions, while 11 existing sponsorship agreements remained valid. FTX, once a key player in sports sponsorship, collapsed, dealing a significant blow to the industry and resulting in the cancellation of deals such as its partnership with the Miami Heat.
However, that year also saw some major sponsorship agreements. Bybit reached a $150 million agreement with the Red Bull Racing team, and Vechain signed a $100 million deal with the UFC. Overall, as token values plummeted and skepticism about the entire industry increased, companies struggled to stay afloat, leading to a slowdown in the speed of new transactions.
2023: Further Decline
By 2023, with the cryptocurrency market in a bearish state, the outlook did not improve. Only 8 new sponsorship agreements were signed, while 14 existing agreements were renewed. The aftermath of the collapse and the ripple effects of FTX still lingered, making investors and companies extremely cautious about large financial commitments. Nevertheless, OKX still managed to strike a $70 million deal with Manchester City.
The decrease in new transactions indicated ongoing market uncertainty, but companies like OKX continued to invest in long-term partnerships.
2024: Slow Recovery
Interestingly, 2024 saw a slight recovery: 26 new sponsorship agreements were signed, while 16 agreements from previous years remained valid. However, this only accounted for 28.3% of all sponsorship agreements signed over the past four years. Crypto.com reached its second sponsorship agreement with the UEFA Champions League, and BlockDAG secured a $10 million deal with Borussia Dortmund, a German Bundesliga club. While the number of new sponsorships has not yet surpassed the level of 2021, the increase in activity indicates that cryptocurrency companies are slowly returning to the sports field.
Cryptocurrency Sponsorship in Sports Events
Football
Since 2021, football has been a major target for cryptocurrency sponsorships. There were 9 new transactions that year, followed by 10 in 2022, a sharp drop to only 3 in 2023, and a rebound to 10 in 2024. Early adopters included clubs such as Manchester United, Chelsea, Inter Milan, Manchester City, and Galatasaray. Cryptocurrency companies also targeted global events such as the UEFA Champions League and the FIFA World Cup to attract the massive international audience of football.
Motorsports
Motorsports, especially Formula One racing, have been another hotbed for cryptocurrency sponsorships. There were 9 new sponsorship agreements in 2021, which decreased to 6 in 2022 and 3 in 2023. In 2024, only 3 new agreements were reached. Notable transactions included Crypto.com's $100 million deal as the official cryptocurrency partner of Formula One, one of the largest contracts in the sport. Bybit's $150 million deal with the Red Bull Racing team in 2022 truly solidified the connection between cryptocurrency and motorsports. Additionally, FTX signed a multi-year agreement with the Mercedes F1 team.
Esports
Esports has also garnered significant interest from cryptocurrency companies. There were 4 new transactions in 2021 and 2022, which then dropped to 1 in 2023. However, there was a positive turnaround this year, with as many as 7 new transactions. One standout transaction was FTX's $210 million sponsorship with Team SoloMid in 2021. Coinbase also sponsored the large Counter-Strike: Global Offensive (CS:GO) tournament organized by BLAST Premier to recognize its strong influence in the gaming community. In 2023 and 2024, Thunderpick was a major sponsor, supporting teams like Evil Geniuses and Heroic in organizing Counter-Strike 2 tournaments.
Basketball
Basketball, especially the NBA, experienced a thriving period of cryptocurrency sponsorship in 2021, with 6 new sponsorship agreements. However, no new agreements were reached in 2022, and only one agreement was signed in both 2023 and 2024. Nevertheless, the sport received a huge sponsorship boost when Crypto.com purchased the naming rights for the Staples Center for $700 million in 2021. Before the collapse of the Miami Heat, FTX had signed a $135 million naming agreement with the Miami Heat arena, and Coinbase also joined the trend by sponsoring both men's and women's leagues. The cryptocurrency exchange also signed an advertising agreement with Kevin Durant.
Sports Projects with the Most Cryptocurrency Sponsorships
The ranking of sports projects with the most cryptocurrency sponsorships between 2021 and 2024 is as follows:
Major Transactions and Partnerships
FTX: The Most Active Sponsor
Before its collapse in 2022, FTX was one of the most active cryptocurrency companies in the sports sponsorship field. In 2021, FTX signed milestone agreements, including a $210 million sponsorship deal with Team SoloMid (esports) and a $135 million agreement with Major League Baseball (MLB). FTX also collaborated with NBA teams, securing a $135 million naming rights deal for the Miami Heat arena and a $10 million sponsorship with the Golden State Warriors. Additionally, FTX ventured into motorsports, reaching an agreement with the Mercedes Formula One team. However, FTX's collapse led to the disruption of many such partnerships, prompting sports organizations to fill the void.
Crypto.com's Extensive Influence in the Sports Field
Crypto.com emerged as one of the dominant players in sports sponsorship, establishing partnerships across various sports projects and regions. The company's investments spanned from motorsports to basketball and football:
Basketball
In 2021, Crypto.com made a historic $700 million deal to acquire the naming rights for the Staples Center, the home arena of the Los Angeles Lakers, marking one of the largest sports sponsorships ever.
Motorsports
Crypto.com strengthened its connection to motorsports by partnering with the Aston Martin Formula One team and sponsoring Formula One racing itself for $100 million in 2021. They also sponsored the 2022 Formula One Miami Grand Prix, further solidifying their position in the motorsports arena.
Football
Football became another focus for Crypto.com. In 2021, they sponsored the Coppa Italia, and highlights of the match between Atalanta and Juventus were minted as NFTs. Their football sponsorships continued into 2022, with the company supporting the FIFA World Cup and the Australian Football League, and becoming the official sponsor of the UEFA Champions League in 2024.
Combat Sports
Crypto.com also ventured into combat sports, reaching an agreement with the UFC in 2021, highlighting their interest in mixed martial arts.
Bybit and the Red Bull Racing Team
In 2022, Bybit secured a $150 million sponsorship agreement with the Red Bull Racing team in Formula One racing, solidifying its position in the world of motorsports. The 3-year partnership made Bybit one of the largest cryptocurrency sponsors in the sport.
Coinbase
Coinbase expanded its influence across various sports projects, signing multiple sponsorship agreements in 2021 and 2022. In 2021, Coinbase entered the world of esports by partnering with BLAST Premier and signing a deal with NBA star Kevin Durant. Coinbase further ventured into traditional sports, partnering with the Women's NBA and reaching a sponsorship agreement with Borussia Dortmund (BVB) in 2022 to raise the profile of European football.
Top Cryptocurrency Companies with the Most Sports Sponsorships
The top cryptocurrency companies with the most sports sponsorships between 2021 and 2024 are as follows:
Successful and Failed Partnerships
Success Stories
While the cryptocurrency market faced volatility, some partnerships have become long-term success stories, demonstrating that cryptocurrency companies can still have a lasting impact in the sports world. Here are these thriving partnerships and their standout reasons:
Crypto.com's Diversified Portfolio and Continued Global Influence
Crypto.com has established itself as a global powerhouse in the sports sponsorship field. Its sponsorships extend beyond a single sport, covering multiple aspects and maintaining consistency with top sports such as Formula One racing, UFC, and football leagues with massive international fan bases. These deals have enabled Crypto.com to engage with millions of fans globally, building strong brand loyalty. Despite the market collapse, many of these partnerships continue to exist, highlighting the resilience of the brand's strategic investments.
Bybit's Strong Position in Formula One Racing
Bybit's $150 million sponsorship agreement with the Red Bull Racing team in 2022 marked a significant win for the cryptocurrency exchange. As Formula One racing continues to gain popularity globally, this partnership has allowed Bybit to reach a wealthy, tech-savvy fan base, helping solidify its market position.
OKX's Strategic Move into Football
Despite the cryptocurrency market downturn, OKX successfully secured a major $70 million sponsorship agreement with Manchester City in 2023. By aligning with one of the world's largest clubs, OKX elevated its brand visibility in Europe and globally.
Failed Partnerships
FTX's Collapse and Its Aftermath
FTX was one of the most active participants in sports sponsorship, but its dramatic collapse in 2022 led to the rupture of multiple partnerships. Team SoloMid was heavily impacted, as their $210 million deal fell through. Additionally, after FTX terminated a $135 million deal, the Miami Heat arena had to seek new sponsors. The $135 million deal with Major League Baseball ended in failure, affecting their revenue source from the collaboration.
Voyager's Sponsorship with NASCAR
Cryptocurrency lending company Voyager faced bankruptcy in 2022, resulting in the termination of its sponsorship agreement with NASCAR. Voyager's collapse not only left its clients in financial distress but also rendered its deal with NASCAR ineffective, marking another failed partnership in the cryptocurrency sports arena.
Terra's Sponsorship with the Washington Nationals (Baseball)
Following Terra's collapse, the $38.2 million deal Terra reached with the Washington Nationals in 2022 fell through. The partnership aimed to promote Terra's stablecoin $UST, but with the company declaring bankruptcy, the partnership never fully materialized.
Why Do Cryptocurrency Companies Sponsor Sports Teams?
Since 2021, there has been a surge in cryptocurrency companies sponsoring sports teams, attributed to several key motivations. While traditional sponsorships typically aim to raise brand awareness and customer engagement, cryptocurrency companies have unique reasons for entering the sports arena. Here are the breakdowns of the core driving factors behind these partnerships:
Brand Awareness and Visibility
One of the primary reasons cryptocurrency companies sponsor sports teams is to elevate their brand awareness among a vast global audience. Sporting events, especially high-profile ones like Formula One racing, UEFA Champions League, NBA, and FIFA World Cup, attract millions of viewers worldwide. By aligning with these major events, cryptocurrency brands can showcase their logos, messaging, and identity to diverse audiences.
Legitimacy and Trust
The cryptocurrency industry has long been met with skepticism from the public due to its volatility and associations with high-risk investments and scams. Sponsoring well-known sports teams or events provides cryptocurrency companies with a halo of legitimacy. Collaborating with renowned sports brands allows cryptocurrency companies to present themselves as credible and stable enterprises.
Fan Engagement and Adoption
Sports enthusiasts are passionate and highly engaged, making them ideal audiences for cryptocurrency companies looking to establish deeper connections and drive adoption of their products. Through sponsorships, cryptocurrency platforms can directly promote NFTs, fan tokens, and other blockchain products to fans. This allows them to bridge the gap between sports enthusiasts and the world of digital assets in a more approachable and appealing manner.
Global Influence
Cryptocurrencies are inherently global, and sponsoring sports with international fan bases allows these companies to tap into new markets. Sports sponsorships provide unparalleled access to a global audience, helping cryptocurrency brands break through geographical barriers and reach customers beyond the traditional tech circles.
Innovative Marketing Opportunities
Sponsorships also enable cryptocurrency companies to explore innovative marketing opportunities, such as offering exclusive NFTs, discounts, or crypto bonuses to sports fans. In turn, these interactions create new touchpoints, allowing potential customers to explore cryptocurrencies in a more relatable and enticing way.
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