The skid that resulted in the wipeout of $270 billion of the cryptocurrency market’s value eased Friday — but industry insiders still expect the crash to have at least some impact on the sports world. 

The big three crypto exchanges — Crypto.com, FTX, and Coinbase — have committed hundreds of millions of dollars to partnership deals with major sports leagues and teams over the last several months. The exchanges take a percentage of each trade, so when the price of a cryptocurrency dips, so does the cut made per transaction. 

Industry experts interviewed by Front Office Sports don’t expect the sponsorship deals with the major exchanges to be in trouble. But the pace of new partnerships had slowed before the crash, and the volatility is expected to further hamper future deals.

Blockchain Sports Bonanza

Web3 — which includes NFTs like those traded on NBA Top Shot — has been a boon for sports. 

• Crypto.com signed a 20-year deal worth $700 million to take over the naming rights of Los Angeles’ Staples Center in November. It also has long-term, nine-figure deals with the UFC and Formula 1. 
• FTX agreed to a 19-year, $135 million pact for the naming rights to the Miami Heat’s arena.
• Coinbase inked a multiyear deal to become the exclusive cryptocurrency exchange of the NBA, WNBA, and NBA G League. 

“Crypto.com remains fully committed to its sports sponsorships,” a company spokesperson told FOS. “We are well-financed, and these are multiyear contracts, which will continue to play a crucial role in our mission to accelerate the world’s transition to cryptocurrency.”

Amid strong demand for tickets and looming questions about hotel capacity, Qatar’s discriminatory practices against the LGBTQ community are raising more issues ahead of the 2022 World Cup.

FIFA has required that all hotels on its official list of recommended accommodations welcome guests in a “non-discriminatory manner,” or else risk the termination of their contracts with soccer’s world governing body.

This follows an ongoing investigation by Wyndham Hotels & Resorts after a report by Norway’s NRK that revealed that the Wyndham Grand Regency in Doha was among three hotel on FIFA’s list that prevented journalists posing as gay newlyweds from booking a room. 

No More Room

The Qatar World Cup, which begins on Nov. 21, is sure to have an eclectic crowd, as it is on pace to surpass ticket sales for the 2014 World Cup in Brazil, which was the best-attended edition in 25 years. 

• FIFA saw more than 800,000 tickets sold between January and March, with 17 million requests.
• Qatar hopes to attract 1.2 million fans for the event.

Qatar’s Supreme Committee told the Associated Press that roughly 90,000 rooms will be available to the public, but officials project 850,000 overseas visitors will need rooms for the tournament.

Peloton has officially teased its new rowing machine, adding to its lineup of bikes and treadmills.

The announcement comes one week after the fitness company released third-quarter earnings, reporting $964.3 million in revenue but missing analysts’ estimates of $972.9 million.

Official details of the launch weren’t disclosed, only that the machine is “coming soon.” 

Reports of a Peloton rowing machine have been surfacing since 2018.

Peloton has been trying to turn its business around since CEO Barry McCarthy took over in February.

• Earlier this month, the company signed an agreement with JPMorgan and Goldman Sachs — the companies that led Peloton’s IPO — to borrow $750 million in long-term debt.
• Peloton announced in April it would be raising its subscription prices in the U.S. and Canada while lowering its hardware prices.
• McCarthy also said during the company’s earnings call that third-party retailers would likely be in the mix soon.

New Fitness Trend?

With the details of its new rowing machine, Peloton is dipping its toes into a space that could boast major financial potential.

Peloton joins Hydrow, for example, in the connected rowing space. In March, Hydrow raised $55 million in a Series D funding round led by Constitution Capital. The company now has more than $255 million in total funding.

Buffalo Bills fans now have an idea of what the team might be charging for personal seat licenses in their new $1.4 billion stadium.

The PSLs could range from $500 to $16,500, according to an email sent to fans obtained by The Buffalo News.

• Reserved section seating, for example, could cost anywhere between $1,750 and $7,300, depending on the level of the stadium.
• The email did say, however, that the prices are “hypothetical” at this time.
• PSLs can reportedly range from $500 in some NFL stadiums to more than $100,000 in markets like Dallas, Los Angeles, and Las Vegas.

The sales would reportedly help fund construction of the stadium.

The state of New York and Erie County previously pledged $850 million toward the project — though the announcement didn’t come without controversy. Bills ownership allegedly asked for public funding to cover the entire cost of the stadium.

Naming Rights

While Bills fans grapple with whether to pay top dollar for season tickets, Highmark Health Blue Cross Blue Shield of Western New York is mulling whether to sell the stadium’s naming rights, Front Office Sports previously reported.

Highmark currently pays about $5 million per year for the 10-year deal rights, according to one source.