Singapore-based crypto-currency exchange platform Crypto.com has reportedly pulled out of a mega deal to become the main sponsor of the UEFA Champions League. According to Sports Business, which broke the news, the deal was valued at €100 million per season, and was to last for five seasons.
The total value of the deal was valued at $495 according to the article. UEFA was previously sponsored primarily by Russian energy giant Gazprom, but the soccer body terminated the deal last March in response to Russia’s invasion of Ukraine. Negotiations between UEFA and Crypto.com continued thereafter, but the termination became inevitable given the negative effects of the crypto winter.
Crypto.com is a leading digital currency exchange platform that prioritizes marketing and ways to promote its business prospects.
It is by far one of the exchanges with significant partnerships with sports brands around the world. In addition to being named the crypto-currency exchange partner for the upcoming FIFA World Cup in Qatar, Crypto.com has secured the naming rights to the Crypto.com Arena in Los Angeles. The naming rights deal cost $700 million out of his pocket.
In addition to these mega deals, Crypto.com is also a recognized sponsor of Formula 1 and the Philadelphia 76ers NBA team. The trading platform’s marketing budget has also prompted it to launch an ad called Fortune Favors the Boldwith Hollywood star Matt Damon. This ad was valued at $100 million at the time.
Change of the promotion scenario
The arrival of the crypto winter has dramatically changed the game for most of the major players in the digital currency ecosystem. While some heavyweight lenders like Celsius Network, Voyager Digital, Zipmex and Vauld Group, among others, have gone bankrupt, exchanges like Crypto.com have had to cut back significantly.
Ranked as one of the biggest spenders of fictitious ads in the space, Crypto.com has reduced its spending and the impact is the result of the cancellation of the UEFA deal.
Since the start of the crypto winter, Crypto.com has had to make two different rounds of staff layoffs to cut costs. While other exchanges like Gemini and Coinbase have also laid off staff, the exchange, in particular, has been criticized for this, as critics blame the non-conservative nature of the exchange company in advertisements and promotions at the expense of maintaining a robust workforce.
While the exchange still has a number of its partnerships in place, it remains to be seen whether it will be able to renew some of them when the agreement expires.