(Source: https://cryptoinsight.ae/year-end-reflections-on-crypto-and-the-world/)
There is probably not a single person left on earth who has not heard of cryptocurrencies. This technology has entered our lives relatively recently, but has already managed to change it significantly. Crypto is used for settlements with sellers, payment for services, and even bets. Obviously, it could not help but certainly affect sports in a way. More and more football clubs receive sponsorship in cryptocurrency. It would seem, what’s the difference? However, it really changes the market. We will talk about the tendency in this article.
The Growth of Cryptocurrency in Sports Sponsorship
(Source: https://dzen.ru/a/YTu0-ucucFYhBXXT)
The role of cryptocurrencies in sports can be indirectly traced through the betting market. More and more betting platforms offer bets in cryptocurrency. If you are interested, check 1xBet site. All popular cryptocurrencies are presented there.
By the way, this trend started several years ago. For example, cryptocurrency transactions were very popular back in 2021. However, in the following years, trust was undermined, and many sports organizations did not take risks. It cannot be said that 2024 will return to its former popularity. However, the situation is definitely improving.
The most popular sports supported by crypto companies this year were football (10 deals) and eSports (seven deals). Then come motorsports (three deals), cricket (two deals), and basketball (one deal).
The most active sponsors remain the American crypto exchanges Crypto.com, Coinbase, and Kraken. In 2023 and 2024, they were joined by the Polkadot and blockDAG blockchains, as well as the crypto sports betting platform Thunderpick. This year, Crypto.com signed its second UEFA Champions League sponsorship deal, while blockDAG signed a $10 million deal with German soccer club Borussia Dortmund of the Bundesliga.
Thunderpick became a major sponsor of the Counter-Strike 2 tournament, while Polkadot signed a deal with the American soccer club Inter Miami, owned by David Beckham and where Lionel Messi plays.
Sponsoring athletes or events increases brand recognition among millions of viewers around the world. Supporting famous teams or competitions gives crypto companies an aura of legitimacy after years of cryptocurrency being distrusted.
Major Cryptocurrency Sponsorship Deals in Football
With 2024 ushering in a new crypto boom, big deals have been coming. First up is Crypto.com. This name will be familiar to sports fans. The company has been involved in crypto sponsorships for several years. In 2024, it finally became a sponsor of the Champions League.
This is Crypto.com’s second attempt at partnering with the Champions League. In early September 2022, the platform was close to signing a five-year deal worth almost $500 million with UEFA but pulled out at the last minute due to concerns about increased cryptocurrency regulation in Europe and potential restrictions on trading.
By the way, the decline in interest in crypto sponsorship is largely due to previous failures in this field. For example, let’s remember the collapse of the NFT virtual asset market, which peaked at $2.8 billion in monthly trading volume. Top sports stars such as Cristiano Ronaldo, Lionel Messi, Neymar, and Paul Pogba endorsed the tokens. The France midfielder promoted the Crypto Dragons platform, which allows users to buy NFT “eggs” that hatch into “dragons” of different classes – common, rare, epic, and legendary – with varying values.
A similar story happened with the FootballStars token, which was endorsed by famous footballers such as Mateo Kovacic and Marcelo Brozovic. In the fall of 2023, the token’s value fell by 98% from its peak, with fans losing huge amounts of money. According to research by dappGambl, which tracked data from crypto platforms NFT Scan and CoinMarketCap, by August 2024, the market capitalization of 95% of NFT collections owned by about 23 million people had depreciated.
Impact on Football Clubs and Teams
(Source: https://coinmarketcap.com/community/articles/6381b23c1457ba6b0b48c830/)
The reason why clubs and football associations have once again decided to engage in crypto sponsorship is quite clear. We are talking about significant amounts that help develop football and make it even more technologically advanced. In addition, the recent rise in the value of Bitcoin makes such cooperation profitable. The less obvious aspect is the desire of sports organizations to demonstrate their modernity and progressiveness. The involvement of cryptocurrency shows that clubs are keeping up with the times and are ready to accept changes.
In addition, blockchain technology allows for increased fan involvement in the life of their favorite team. Here, we are talking about fan tokens. These are cryptocurrencies created by the club itself. Most often, fans buy them not as investments but to support the team financially. However, financial benefits from the growth of these assets can also be obtained. However, the most important feature of these currencies is that their owners receive special bonuses. For example, these can be exclusive materials about the life and training of favorite football players, the opportunity to purchase limited merch, etc.
Another attractive feature of crypto sponsorship is its security. Blockchain technology currently provides the most secure transactions. Although such investments are always associated with risk due to frequent fluctuations, the technology is still evolving. Perhaps in the future, it will become the most preferred method of sponsorship.
Cryptocurrency and Fan Engagement
Technological progress does not stand still. Therefore, all processes in different projects have gained even greater development. When the concept and finished product of a non-fungible token (NFT) appeared, people understood this technology, believed in it, and thus launched even greater interest in this direction in crypto, which increased the capitalization of tens of thousands of projects that used NFT technology. Everything is moving and developing. Therefore, NFT technology has come to the sports sphere, where its application has been found.
A good example is the fan token of the Paris Saint-Germain football team. Accordingly, anyone who wants to support their favorite football team buys these tokens for any amount of their assets. Thus, the fans of this football team are such generous guys that the capitalization of this token reached $28 million, with a token price of $9.13.
The next fan token of the S.S. football team Lazio, whose capitalization is $20.7 million, with a token price of $2.44. Another interesting fan token belongs to the football club Barcelona. The capitalization is $18.6 million, while the price of the token itself floats in the range of $4.78. The same are generous fans of the Spanish «Barca» that have made such a huge token capitalization. Thus, thanks to fan tokens, football lovers can not only support their favorite team but also earn money. Of course, this does not work with all tokens. However, everything is possible.
Conclusion
The growth of cryptocurrency sponsorship has had a significant impact on football in recent years. This year has already brought us several high-profile contracts. Is it good or bad? Financial injections help clubs develop, and teams show even better football. Therefore, additional funds will definitely benefit everyone and especially the fans. Perhaps in the future, all club support will move to the crypto format, but it is too early to talk about it.
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