Leading cryptocurrency exchange CryptoCom has pulled out of an agreement with the Union of European Football Associations (UEFA), following in the footsteps of FTX that recently left a deal with the Los Angeles Angels, SportsBusiness reported Thursday.
CryptoCom Abruptly Ends $500M UEFA Deal
The sponsorship was supposed to last for five seasons starting this summer at £100 million per season ($99.9m), making it a total of £500 million ($499m).
Sources familiar with the matter explained that the Singapore-based firm and UEFA were close to signing off on the in-principle agreement when the crypto exchange suddenly had a change of heart and backed out of the long-term deal.
As stated in the report, CryptoCom was on the lineup as a replacement for Gazprom, a Russian-owned gas company that recently dissolved its contract with UEFA due to the ongoing Russo-Ukraine crisis. The gas company reportedly paid the soccer association £40 million per season for its Champions League rights.
The now dissolved partnership with CryptoCom would have marked one of the most significant sponsorships for the Champions League this summer.
A Change of Heart
SportsBusiness noted that the sudden change of heart from the crypto company was not influenced by the recent market crisis that erased billions of dollars from the industry.
However, the decision stemmed from legal advice the firm received from financial regulators controlling some of the most important crypto markets like the United Kingdom, France, and Italy, where the exchange recently obtained approvals to offer its suite of product offerings in the countries.
Meanwhile, while CryptoCom has dissolved its sponsorship with UEFA, the Association still has many sponsors, including Mastercard, PlayStation, and Heineken, according to its website.
CryptoCom and its Sports Partnerships
CryptoCom is one of the many crypto companies that has entered the world of sports through partnerships and sponsorships.
The exchange recently inked a deal to sponsor the FIFA World Cup this season. Through the agreement, the firm’s logo would be displayed inside and outside the tournament’s stadiums during matches.
Earlier this year, the exchange secured another partnership with the Ultimate Fighting Championship (UFC). The deal allows UFC to pay its fighters with Bitcoin (BTC).
CryptoCom also sponsors several other sports like Formula 1 and the Philadelphia 76ers NBA team.
Source: https://coinfomania.com/cryptocom-backs-out-of-500m-uefa-deal/