• Loading stock data...
Tuesday, March 19, 2024
2024 Best Venues nominations are open now through April 8! Submit Now

Crypto Crash Impact on Sports Sponsorships

Crypto-markets-sports-sponsorship
Design: Alex Brooks

Prior to the last two weeks, cryptocurrencies, NFTs, exchanges, and a host of companies related to the crypto industry have heavily invested in sports. 

Whether it was athletes becoming the face of a particular crypto brand, teams entering into naming rights agreements for their arenas, or leagues entering into partnerships, the relationship between sports and crypto has become more and more ubiquitous.

During this period, many athletes and teams entered crypto because of its promise of being the “future of money”. Crypto as a whole is viewed as one of the most accessible and investable asset classes, and athletes have capitalized on that trend from a marketing standpoint. Tom Brady, Steph Curry, and Trevor Lawrence all have become faces of crypto exchange FTX, but these deals are not exclusive to athletes or FTX.

  • Crypto.com signed a 20-year deal reportedly worth $700 million to take over the naming rights of Los Angeles’ iconic Staples Center in November. The exchange also agreed to a 10-year, $175 million deal with UFC and a five-year, $100 million partnership with Formula 1 last year.
  • Last October, Coinbase inked a multiyear deal to become the exclusive crypto exchange of the NBA, WNBA, and NBA G League.
  • The Dallas Cowboys became the first NFL team with a crypto partnership last month via a deal with Blockchain.com. 
  • FTX agreed to a 19-year, $135 million pact in March 2021 for naming rights to the Miami Heat’s arena.

The deals have recently come into question, however, as the broader crypto markets saw an enormous selloff over the past two weeks. At peak selloff, it is estimated that nearly $400 billion of market capitalization was wiped away. 

The crash was catalyzed, in large part, by the collapse of – what is known in the industry as – a stablecoin project called Terra (“UST”). The stablecoin saw its market capitalization decrease by 97% in the span of days, leading to investors panicking and pulling out their money, causing a vicious, self-enforcing bank run.

While most crypto partnerships are between large exchanges and their sports counterparts, stablecoins have found their way into the industry as well. In February, the Washington Nationals signed a five-year, $40 million sponsorship deal with Terra. Since the deal, the market capitalization of Terra has decreased to less than $1 billion — an almost 97% reduction in value since the initial deal was struck. 

Want to learn more? Check out the full Scouting Report here.

ICYMI: Last week, we published another Scouting Report on the importance of short form video for content creators and marketers in sports. You can access that report and our other research at Pro HQ

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Feb 18, 2023; Salt Lake City, Utah, USA; Grambling State University Tigers guard Tra'Michael Moton (5) celebrates with guard Shawndarius Cowart (10) after making a basket against the Southern University Jaguars during overtime at the Jon M. Huntsman Center.

Yes, the First Four Matters. Here’s Why

The preliminary round of the NCAA tournament is nothing to sleep on.
Mar 10, 2024; St. Petersburg, Florida, USA; Indycar driver Josef Newgarden (middle) celebrates winning the Grand Prix of St. Petersburg. Indycar driver Patricio O'Ward (left) celebrates winning second and Indycar driver Scott McLaughlin (right) celebrates winning third.

With NBC Deal Expiring, IndyCar Nearing New Media-Rights Deal

IndyCar is in the last season of a three-year rights deal with NBC.
Jul 12, 2023; Los Angeles, CA, USA; ESPN president Jimmy Pitaro arrives on the red carpet before the 2023 ESPYS at the Dolby Theatre.

Disney Succession Talk Rises Amid Shareholder Battles, ESPN Changes

Public attention rises on who will lead the company after Bob Iger.

Dartmouth Refuses to Bargain With Newly Formed Men’s Basketball Player Union

The school hopes a lengthy, two-pronged appeals process will stop the union.
podcast thumbnail mobile
Front Office Sports Today

How ESPN Broadcasts the Most Unpredictable Tournament in Sports

0:00
0:00

Featured Today

‘Everybody Was Under Suspicion’: The Day Selection Sunday Was Scooped

In 2016, the ‘Selection Show’ backfired when the bracket was leaked anonymously.
Sep 3, 2023; Seattle, Washington, USA; Orlando Pride forward Ally Watt (11) and Orlando Pride forward Julie Doyle (20) enter the stadium before the game against OL Reign at Lumen Field.
March 16, 2024

So Long, White Shorts: Here’s Why the NWSL’s Uniform Pivot Matters

There’s finally a growing trend to adapt women’s sports to women’s bodies.
exclusive
March 11, 2024

WWE Prez Nick Khan, COO Brad Blum Revealed As Key Figures in Vince McMahon Sex-Trafficking Suit

The two men are described in the suit as facilitating and covering up exploitation.
March 10, 2024

For the ‘Spulu’ Super-Streamer: Lots of Questions, No Good Answers

Big partners, bigger promises, and an unclear operation.

Careers

Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Spotify
Multiple - USA Careers
Nike
Multiple - USA Careers
EA
Multiple - USA Careers
Sponsored

How Sportradar and the NBA are Partnering to Fuel Fan Engagement

How Sportradar and the NBA are utilizing data to enhance fan engagement
Oakland-A's
April 25, 2023

Oakland A’s Could Share Stadium with Triple-A Team

The Oakland A’s could be searching for a place to play.
Sponsored

MLS’ Chris Schlosser on Pioneering the Digital-First Sports League with AI

Chris Schlosser discusses MLS’s growth and digital transformation.
Sponsored

How Daily Fantasy Sports Solved NBA Fantasy

The remarkable growth of the #1 Discord sports server in the world.
Titans stadium.
April 19, 2023

Titans’ Historic New $2.1B Stadium One Step Closer to Reality

About $1.26B in public money would go toward the new stadium.
Insights-Wearables-Consumers
March 11, 2022

The Evolution of Consumer Wearables

The wearables market has seen incredible amounts of growth since the onset of the pandemic. Trends like telemedicine and remote patient monitoring have helped spur adoption and inspired new consumer products that allow for the tracking and collection of biometric data.
February 11, 2022

The Role of Live Sports in Streaming

The streaming wars have intensified as the field is as competitive as ever. One way to retain customers? The answer might be live sports.
February 4, 2022

Super Bowl Ad Market Examined

The Super Bowl is now only one week away and the stakes…