Crypto News

Crypto Sports Sponsorships See Dramatic Shifts Since 2021

Since 2021, the world of sports sponsorships has witnessed 92 crypto-related deals, with the latest data as of September 2024 revealing significant fluctuations driven by market conditions.

This year alone saw 26 new sponsorships signed, while 16 deals from previous years remain active. However, only 28.3% of the total 92 deals signed over the past four years are still ongoing.

The bull market of 2021 fueled a frenzy of crypto sponsorships, with 33 new deals inked that year, making up 35.9% of all agreements between 2021 and 2024. Leading the charge were crypto giants FTX and Crypto.com. Crypto.com famously secured the naming rights to Staples Center, while FTX entered a massive $210 million deal with esports organization Team SoloMid (TSM).

However, the market downturn in 2022 slowed the momentum significantly. Only 25 new deals were signed that year, and with FTX’s high-profile collapse, major sponsorships like its partnership with the Miami Heat were canceled. Despite this setback, notable deals still emerged, including Bybit’s $150 million agreement with Red Bull Racing and VeChain’s $100 million sponsorship of the UFC.

The bear market extended into 2023, with a mere 8 new sponsorships and 14 renewals signed. Yet, the crypto space remained invested in sports partnerships. OKX made headlines with a $70 million deal with Manchester City, demonstrating a commitment to longer-term collaborations despite the turbulent market.

Looking ahead, the future of crypto sports sponsorships remains uncertain. The early boom driven by 2021’s bull run has been tempered by the fallout from FTX and broader market conditions. Still, companies like Crypto.com and OKX continue to bet big on the value of high-profile sports partnerships.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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