Spring is just around the corner, but is crypto winter over? Last week, with Bitcoin trading at all-time highs and the entire industry hungry for new sponsorship categories, many were wondering if everything old is new again. Will the exchanges where Bitcoin is traded start spending like they did just a few years ago, before some exchanges caught fire? FTXalong with the Miami Heat's home arena nameplate, what gave MLB umpires their brand for several seasons? Binance also filed for bankruptcy voyager, had a major sponsorship of the Dallas Mavericks. There was also confusion among some of his NFT and related blockchain brands. Socioswas withdrawn from the U.S. market last fall.
Bitcoin's The rise to record heights has gone completely unnoticed across the sport. Naturally, there is still a sense of caution.
“we We were just talking about it.'' Keith Wachtel NHL Chief Business Officer and Executive Vice President of Global Partnerships. “There are still some regulatory issues and concerns. Of course, we will continue to do our due diligence. At the league level, there is nothing pressing or that we are actively pursuing yet. It's not just about regulation, it's about how comfortable everyone feels with those companies right now, even if there is more regulation.”
sponsor united There are currently 118 crypto brands conducting some form of sports marketing in the US and Europe. “It's still a broad category for most properties,” the SU founder said. Bob Lynch.
Jason Miller, Excel The head of real estate who helped the Sixers with Crypto.com's uniform patch deal said he expects a comeback. “Many of them are funded or at least supported by Bitcoin wallets, so as Bitcoin rises significantly, they are once again getting the full packet. Although there will be some caution, we still expect to see a significant number of new deals in this space from brands looking for recognition.”
Crypto.com has established a strong sponsorship track record that other companies are following suit.Getty Images
There is Some evidence that it's already happening. The UFC has Crypto.com The sponsorship from 2021 includes prominent kit branding and remains one of the biggest deals on the MMA circuit. Given the recent breakthroughs in digital currencies, “we're both now looking at ways to proactively and proactively expand that partnership,” he said. grant norris jonesAs Executive Vice President and Head of Global Partnerships, he sells sponsorship assets for both the UFC and WWE. Endeavors This is TKO Group. “And if they're doing that with us, I'm sure there are opportunities like that across the market.”
just Last week, UEFA issued an RFP inviting bids for the Champions League from cryptocurrency exchanges.
So, Is the digital exchange category back for good? There are reminders that some brands never left.
CAA sports co-responsible person mike levin He said he expects the market to be relatively active, especially in the second half of this year.
” The untold story is that many of these companies with large sponsorships actually survived multiple crypto winters before this latest run-up.” said Levine, who was assisted by the agency. OKX A series of deals were signed, including sponsorship of the Tribeca Film Festival. OKX also serves as a side sponsor of Manchester City in the Premier League, and is also a major sponsor of the McLaren Formula 1 team. “The market should recover relatively quickly, but with version 2.0 of blockchain and sponsorship, functionality becomes more central to a brand's success. For NFTs, utility is more important than collectibility. It will be.”
There The lawsuit is still pending; Sam Bankman Freed still in prison. So can this category be fully revived in terms of sponsorships, or will this guy of the decade be forever typecast as the Spongetech?
“addition Regulatory reassurance will certainly go a long way,” said the NHL's Wachtel. “But the bigger concern about something like this will always be the reputational risk.”
“people I’m getting used to cryptocurrencies again,” said the industry veteran. David PaloHead of Global Sponsorship Remittance service. “It seems natural that there will always be some volatility in this category. Therefore, the trade structure will be attractive.”
rear After receiving a lot of pressure from clubs during the last big spend on digital exchanges, the NFL will allow clubs to do sponsorships with cryptocurrencies in 2022.Only two have done it: the Cowboys. Blockchain.com and the giants grayscale. Socios He had contracts with more than a dozen NFL teams. “Nobody's knocking on the door yet,” said the Ravens' sales manager. Kevin Rochritz“But as things unfold, we expect both sellers and buyers to become more cautious. And in a category like this, the NFL will never be number one.”
Chris Vogt, SVP of Corporate Partnerships for the Seattle Mariners, said his team has recently received inquiries about sponsorships. “This was unexpected, but still early and exploratory,” he said from spring training in Arizona. “Obviously, there's money coming in that direction right now. Of course, on our side, we'll try to protect ourselves as much as possible in any deal.”
and With sponsorships including naming rights to L.A.'s Downtown Arena, Crypto.com appears to have the most brand recognition in the U.S., with the number two spot open. I would like to see one of the exchanges jump on that vacancy.
“Anyone Sales require advance payment whenever possible. [crypto] This time, the passing factor will not be so important.” Adam Davis “Two Circles” He served as managing director for North America and as chief commercial officer, negotiating the jersey patch deal between the Sixers and Crypto.com. Harris Blitzer Sports & Entertainment. “This is an industry that generally follows the money. A few years ago, tobacco signs were a common sight at venues, but now there are a number of spirits and betting brands. In 10 years, we will In the evening, we'll be talking about the category of THC and psychedelics. Money always wins in sports.”
Terry Lefton can be reached at tlefton@sportsbusinessjournal.com.
