Cryptocurrency Companies Take Multi-Million Dollar Step Into The Sport

[ad_1]

Carli Lloyd of NJ / NY Gotham FC dribbles past Orlando Pride defenders in the first half of the NWSL game at Red Bull Arena on August 29, 2021.

Ira L. Black – Corbis | Getty Images Sport | Getty Images

Cryptocurrency companies, eager to reach new audiences and gain a foothold in the mainstream, are quickly becoming some of the sport’s biggest advertisers and sponsors.

From Crypto.com’s record-breaking 20-year, $ 700 million deal for naming rights to the Los Angeles arena that is home to the Lakers, Kings and Sparks currently known as Staples Center, to Coinbase signing a wide-ranging deal with the NBA, to Tom Brady, a self-proclaimed “big believer” in crypto, taking a stake in FTX, the deals were both broad and quickly coming.

The National Women’s Soccer League is the latest sports property to embark on crypto, signing a multi-year agreement that is described as one of the most significant partnerships the league has ever made with the Voyager Digital crypto platform.

Helping crypto reach new audiences

For Voyager, whose other sporting deals include sponsorships with the Dallas Mavericks owned by Cuban Mark, Tampa Bay Buccaneer tight end Rob Gronkowski and NASCAR driver Landon Cassill, the deal with the NWSL is an opportunity to achieve a new audience.

“We see this as an opportunity to really engage with the player, the fan and this NWSL community in a way that no one has before,” said Voyager CEO Steve Ehrlich. “What really intrigues me is getting involved in women’s sport, and that’s a very important aspect for us because it’s a market that we believe is ripe for education and an opportunity. to give these women a better footing on their financial future through crypto. “

Twice as many men as women invest in cryptocurrency, according to CNBC and Acorn’s Invest in You: Next Gen Investor Survey.

A “significant part” of Voyager’s investment in the NWSL as part of the deal will create a fund that will be split between each player and placed in their own individual Voyager crypto account, Ehrlich said, declining to provide details. specific financials. . Players will also receive financial crypto education from Voyager.

“Voyager’s investment in the league is particularly innovative as we have collectively designed the partnership to include direct financial resources for each of our players, as well as education on the revolutionary changes underway in digital assets,” said Marla Messing, Interim CEO of NWSL. A declaration.

Crypto gains a foothold in sport

Sports leagues quickly embraced crypto as many seek to generate revenue to stem losses caused by the pandemic, creating a sponsorship category that rarely existed less than a year ago.

Crypto.com has signed a $ 175 million deal with the UFC, owned by Endeavor, which has its logo appear on clothing worn by athletes during competition, which follows a $ 100 million sponsorship deal. dollars he signed with Formula 1, owned by Liberty Media.

Major League Baseball signed a multi-year deal with FTX in June, then the first league-to-crypto exchange partnership, putting an FTX.US patch on referee uniforms. FTX also acquired the naming rights to the arena from the Miami Heat under a 19-year contract valued at $ 135 million.

Individual teams and athletes have also made deals, ranging from NBA Portland Trail Blazers with StormX and MLS Inter Miami CF with XBTO, Golden State Warriors goalie Stephen Curry with FTX and Best Pick of NFL Draft Trevor Lawrence with Blockfolio.

The crypto deals also went far beyond traditional stick and ball sports, with the Drone Racing League signing a $ 100 million deal with crypto platform Algorand and partnered esports team Fnatic. with Crypto.com.

“Our research shows that there is a lot of crossover between interest in crypto and sports fans,” Ehrlich said. “I think that’s why more and more companies are stepping into this arena and doing some of these bigger deals.”

Sports fans are about twice as likely as non-sportspeople to say they are familiar with cryptocurrencies, according to a Morning Consult survey, and 24% of those surveyed who said they were sports fans had a crypto.

Still, some sports properties have been hesitant. The NFL, historically cautious about opening new sponsorship categories, has banned its teams this season from selling sponsorships with cryptocurrency trading companies. The New York Giants have one of the only deals with a space company, signing a partnership with crypto asset manager Grayscale.

FC Barcelona and Manchester City, two of the biggest soccer clubs in the world, have been forced to cancel crypto-related sponsorship deals after questions were raised about the companies’ validity.

Kevin Kane, senior director of client strategy at sports market research firm Navigate, said that while there is a risk for sports properties to sign deals with companies in this fast-paced space, the Crypto’s growth rate means this is probably just the start. for major crypto-related sponsorship agreements.

“You look at the number of people around the world investing in crypto – last year it doubled to 100 million, it’s now estimated at over 220 million, and a lot of people expect that. he doubles again next year, ”Kane said. “When the customer base is growing at such a rapid rate, there will be a lot of capital and marketing for brands who want to make sure they’re on the front lines before you even know you want to invest in crypto. . “

[ad_2]