Singapore-based cryptocurrency exchange Crypto.com has reportedly pulled out of a mega deal to become title sponsor of the UEFA Champions League. According to Sports Business who announced the news, the contract was valued at 100 million euros per season, and was to last five seasons.
The total value of the deal was assessed at $495 according to the article. UEFA was previously mainly sponsored by Russian energy giant Gazprom, but the football body ended the deal last March in response to Russia’s invasion of Ukraine. Negotiations between UEFA and Crypto.com continued thereafter, but termination became inevitable given the negative effects of the crypto winter.
Crypto.com is a prominent digital currency exchange platform that prioritizes marketing and ways to promote its trading prospects.
It is by far one of the exchanges having significant partnerships with sports brands around the world. Along with being named the cryptocurrency exchange partner for the upcoming FIFA World Cup in Qatar, Crypto.com has secured the naming rights of the Crypto.com Arena in Los Angeles. The naming rights deal cost $700 million out of pocket.
Apart from these mega contracts, Crypto.com is also a recognized sponsor of Formula 1 and the Philadelphia 76ers NBA team. The exchange’s marketing budget also pushed it to launch an advertisement titled Fortune Favors the Bold, with Hollywood star Matt Damon. This ad was estimated at $100 million at the time.
Changing the Promotion Scenario
The arrival of crypto winter has been a huge game-changer for most major players in the digital currency ecosystem. As some heavyweight lenders like Celsius Network, Voyager Digital, Zipmex, and Vauld Group, among others, went bankrupt, exchanges like Crypto.com had to cut spending drastically.
Ranked as one of the biggest spenders on fictional ads in the space, Crypto.com has cut spending and the impact is a result of the cancellation of the deal with UEFA.
Since the start of the crypto winter, Crypto.com has had to go through two different rounds of staff layoffs in order to cut costs. While other exchanges like Gemini and Coinbase have also laid off staff, the exchange, in particular, has come under fire for this, as critics blame the exchange company’s non-conservative nature in advertisements and promotions to the detriment maintaining a strong workforce.
Although the exchange still has a number of its partnerships in place, it remains to be seen whether it will be able to renew some of them when the agreement expires.