Cryptocurrencies have crashed in value since late last year, and the fallout is impacting sports sponsorships.
Two high-profile deals between teams and crypto exchanges have reportedly fallen apart due to the value drop, according to the New York Post.
- In the past few weeks, FTX suspended talks with the Los Angeles Angels on a jersey patch deal.
- A patch deal between a crypto company and the Washington Wizards was also scuttled. With crypto companies spending heavily on lobbying, the Wizards, who play in the nation’s capital, are considered especially valuable real estate.
The prices of bitcoin and ethereum, the two most valuable cryptocurrencies, have respectively dropped by 69.1% and 76.7% since their November peaks.
Shopping Spree Stopped
The pullback comes after a period when crypto companies poured billions into sports sponsorships.
FTX and Crypto.com both inked high-profile arena naming rights deals, with FTX securing the Miami Heat’s home in March 2021 in a 19-year, $135 million deal, and Crypto.com landing the arena of the Los Angeles Lakers, Clippers, Kings, and Sparks, in a reported 20-year, $700 million deal in November.
In the 2021-22 NBA season, crypto companies jumped to the second-biggest spenders — with $100 million to $150 million in sponsorship deals — after placing 43rd the previous season.
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