- Crypto sports sponsorships dipped 38% since 2021 but show signs of recovery in 2024.
- FTX’s collapse in 2022 triggered a major pullback in crypto sports sponsorship deals.
- 2024’s uptick of 26 crypto sponsorships hints at a cautious market rebound.
Crypto companies have a history of turning to sports sponsorships to grab the public’s attention. But the game has changed a lot since the peak in 2021. A Coingecko report shows that the downfall of big players like FTX and the sharp market downturn in 2022 caused a major decrease in new deals. In 2024, with 26 new sponsorships signed, is the relationship between cryptocurrency and sports on the rebound?
In 2021, the crypto bull market fueled a boom in sponsorship deals. Crypto companies secured 33 new partnerships, making up 35.9% of all deals between 2021 and 2024. Some notable deals included Crypto.com’s $700 million naming rights agreement for the Staples Center and FTX’s $210 million sponsorship with Team SoloMid in esports. These sponsorships aimed to make crypto a credible mover in mainstream sports.
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But then, the 2022 market crash caused a significant pullback. The number of new sponsorships dropped to 25, with many firms canceling or freezing existing partnerships. The collapse of FTX sent shockwaves through the industry, leading to the termination of deals such as FTX’s partnership with the Miami Heat. Still, firms like Bybit and Vechain forged high-value deals, keeping the industry from completely stalling.
The downward trend persisted in 2023. With only 8 new deals signed, it was clear that many companies were still hesitant. Renewals accounted for 14 additional deals, but there were no major breakthroughs. However, OKX secured a $70 million sponsorship with Manchester City, showing that some crypto firms still saw value in long-term sports sponsorships.
2024: Signs of Recovery?
Though a far cry from its 2021 high, 2024 have seen noticeable increase in new sponsorships, with 26 deals signed. Crypto.com returned with a sponsorship of the UEFA Champions League, and BlockDAG signed a $10 million deal with Borussia Dortmund. Even though the total number of deals remains 28.3% of the 2021–2024 total, this uptick suggests a cautious recovery.
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Source: https://coinedition.com/are-crypto-sports-investments-still-a-good-bet-insights/