It has been determined that the promotional agreement to have the company's name branded on the UEFA Champions League soccer competition will not go forward.
According to Sport Business, negotiations for the contract, which would have been valued somewhat more than one hundred million dollars annually, were conducted but the deal was never consummated.
A Terrible Setback For The UEFA
The five-year agreement between Crypto.com and UEFA would have been worth a total of $495 million and would have cost the cryptocurrency exchange $99 million year, which is equivalent to almost 100 million euros each sea
UEFA had been supported by the Russian natural gas corporation Gazprom before to the beginning of conversations with Crypto.com; however, the organization terminated the sponsorship connection in March as a direct result of Russia's invasion of Ukraine. UEFA is now supported by Crypto.com. It was anticipated that Crypto.com will succeed Gazprom as the incumbent.
UEFA continues to have a big number of other sponsors, in spite of the fact that its previous partnership with Crypto.com has come to an end. According to the league's website, it has ongoing sponsorship agreements with a number of companies, some of which include Lay's, Heineken, Mastercard, FedEx, and Sony PlayStation.
Additional Sponsorship Opportunities on Crypto.com
Crypto.com pulls out of the sponsorship arrangement with UEFA, although they are still very interested in other sport sponsorship opportunities.
This move comes after the corporation received official approval in March to become a sponsor of the FIFA World Cup, in addition to a number of other bold promotional initiatives in the sports market.
The corporation with its headquarters in Singapore became a founding partner of the Angel City Football Club in 2017, which is a women's soccer club based in Los Angeles. It also became the only global "fighting kit" partner for the UFC, which means that fighters who appear in UFC events would wear gear with its emblem on it. This partnership brings a lot of benefits to the UFC. The most essential aspect of this deal is that Crypto.com will pay $700 million to have the Los Angeles Staples Center renamed the Crypto.com Arena.
In the midst of a bad market for bitcoin, many appear to be reluctant to commit huge sums of money on sports advertising agreements.
In a recent interview with The Block, Sunny Singh, CEO of the media partnerships agency Van Hawke, stated that cryptocurrency companies are in the process of calculating the return on investment (ROI) of their various sponsorship deals. "The fees paid in cryptocurrencies have exceeded the rates set by the market."
According to Singh, some cryptocurrency-related sports advertising deals that had been in the works but had been terminated have been scrapped.
The Attempt to Participate in Sports Is Still Underway
In addition, the company has an agreement of one hundred million dollars with Formula One racing and is the sponsor of the National Basketball Association team the Philadelphia 76ers.
In the meantime, Crypto.com has filed a lawsuit against a woman for unintentionally transferring $10 million of her own money. In addition, layoffs have been a problem for the exchange, with a first wave that was less severe in June and a second round that is more severe this month.
On the other hand, it would appear that the company is making investments in extending its market. This past month, Crypto.com was given authorization to operate legally within the boundaries of the United Kingdom. It also has expansion plans in South Korea in the works.
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