Crypto.com has decided against a sponsorship deal with the European Champions League (UEFA), withdrawing from the partnership in the “last moment”.
According to SportsBusiness, Crypto.com has been hit by the global slowdown in cryptocurrencies and overall grim outlook for the sector.
The contract with UEFA would have come to $99m annually and run for a period of five years, amounting to $495m in total.
Now though, Crypto.com will not be proceeding with its plans, leaving UEFA without a sponsor shortly before the new season.
Nevertheless, UEFA is confident that it will continue operating at full capacity citing several sponsors, including Sony PlayStation, MasterCard, and Heineken as some of its prominent sponsors who are still on board.
But Crypto.com’s refusal to push through with the deal may be signaling a change in attitudes towards similar partnerships.
Cryptocurrency companies are likely to stop seeking out multi-million partnerships in order to gain exposure.
FTX, a competitor to Crypto.com, bought the naming rights for the Miami Heat arena for a 19-year period, baptizing the facility the FTX Arena instead.
Elsewhere, was able to buy the naming rights for the Staples Center, home of the L.A. Lakers and paid $700m for a 20-year period. Such partnerships are designed to raise awareness for cryptocurrency brands, but Crypto.com has concluded that burning piles of cash may not be feasible given the current slow down in the market.