CoinStories podcast host discusses the state of cryptocurrencies following the global market selloff.
Crypto is kicking off a new era in sports marketing: Partnering with major European soccer clubs.
Sponsorship deals between crypto companies and high-profile soccer outfits are particularly hot this season. The latest iteration involves blockchain firm BlockDAG and two of Europe’s top clubs: Italy’s Inter Milan and Germany’s Borussia Dortmund.
BlockDAG, which operates a so-called “Layer One” blockchain, has committed $10 million over three years for its branding to appear across Borussia Dortmund’s home stadium and various social media platforms. The German team also extended its partnership with the U.S.’s largest crypto exchange, Coinbase, for a further three years.
Sam Bankman-Fried, co-founder of FTX Cryptocurrency Derivatives Exchange, leaves court in New York, US, on Wednesday, July 26, 2023. (Photographer: Yuki Iwamura/Bloomberg via Getty Images / Getty Images)
BlockDAG announced that another $5 million will go to Inter Milan for similar marketing opportunities. This is the Italian club’s second crypto sponsorship deal this year alongside Chinese crypto exchange Gate.io, whose logo appears on the sleeves of its players’ jerseys.
CRYPTO EXECUTIVES CLASH WITH DEMOCRATIC LEADERS IN HEATED ZOOM MEETING
“This collaboration not only elevates our brand but also positions us at the forefront of blockchain adoption in mainstream sports,” said Antony Turner, CEO of BlockDAG. “We are excited to explore the synergies this partnership brings and to introduce the power of BlockDAG to millions of football fans worldwide.”
The move is part of a broader push from crypto firms to expand their customer bases and demonstrates a renewed willingness by sports teams and leagues to partner with them following the downfall of the now-defunct crypto exchange FTX.
Representation of cryptocurrencies are seen in this illustration photo taken in Krakow, Poland on November 14, 2022. ((Photo by Jakub Porzycki/NurPhoto via Getty Images) / Getty Images)
Formerly run by now-convicted fraudster Sam Bankman-Fried, FTX became known for its brand partnerships with sports stars such as Tom Brady and Steph Curry and its flashy sponsorship deals, like renaming the Miami Heat stadium to “FTX Arena” in 2021. Throughout its brief heyday, FTX committed around $375 million to various sports teams and leagues, including the National Basketball Association, Major League Baseball, and the National Hockey League. The implosion of the exchange and the indictment and subsequent conviction of Bankman-Fried cast a shadow over the entire $2 trillion crypto market and resulted in a significant drop-off in crypto and web3 sponsorships as companies became wary of the digital asset industry.
Two years on, partnerships with crypto firms appear to be back in play, at least in the soccer world.
“We are thrilled to welcome BlockDAG as our official blockchain partner,” said the CEO of Inter Milan, Alessandro Antonello. “At Inter, we have always been at the forefront of innovation, and this partnership aligns with our vision to embrace new technologies that can enhance our connection with fans and partners globally.”
The trend is also reflected in a myriad of crypto-soccer deals that have been inked this year.
BITCOIN IS ATTRACTING ‘MASSIVE AMOUNTS OF CAPITAL’: MICHAEL SAYLOR
In July, U.S. crypto exchange Kraken signed a sponsorship deal with England’s Premier League team, Tottenham Hotspur, becoming the club’s first-ever official crypto and web3 partner. Kraken also inked a deal with Spain’s Atlético Madrid just one year after the exchange announced a brand deal with Williams Racing, one of the world’s leading Formula One teams.
A novelty Bitcoin token during the NFT.NYC 2024 conference in New York, US, on Wednesday, April 3, 2024. NFTs, which went from being touted as the cutting edge of the digital frontier to the punchline for the most recent crypto bust, are suddenly sta (Photographer: Timothy Fadek/Bloomberg via Getty Images / Getty Images)
Like BlockDAG, Kraken’s targeting of the soccer fan base is strategic.
“At Kraken, our marketing research shows that over 75% of our core audience in Europe are passionate football fans,” Kraken’s Chief Marketing Officer Mayur Gupta tells Fox Business. “Through our partnerships with top clubs like Tottenham and Atlético Madrid, we plan to bridge the worlds of football and crypto, offering meaningful experiences that resonate with fans and bring them closer to the core substance and value of crypto.”
Meanwhile, fourteen of the twenty clubs in England’s Premier League have signed deals with fifteen different crypto sponsors for the 2024/2025 season. Singapore-based exchange Crypto.com announced a partnership with the UEFA Champions League, while in the U.S., Major League Soccer club Inter Miami has partnered with crypto protocol Polkadot.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
BlockDAG has hinted it may also have a partnership with an English Premier League team in the pipeline.
“Football’s global appeal and cultural significance provide an opportunity to reach a broader audience that aligns with our marketing strategy and supports our mission to accelerate the adoption of crypto worldwide,” Gupta added.
