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Due to the current market downturn, crypto firms are avoiding new sports partnership deals that would likely cost them a huge amount of cash.
With the persistence of the current bear run in the cryptocurrency market, crypto firms continue to be on their toes. And to achieve their aim of staying in business, they must generally cut costs, albeit in every way possible. But while some have resorted to layoffs, others are beginning to take some of their sports partnership deals off the table.
Crypto Firms U-turn from Signing More Sports Deals
According to a NY Post report, crypto exchange FTX is one of those firms currently reconsidering some of such deals. A few weeks ago, talks had entered into advanced stages for FTX to have its name and logo printed on MLB’s Los Angeles Angels jerseys. However, that deal has now fallen through, according to inside sources.
Additionally, a partnership that was supposed to happen between another unidentified crypto firm and NBA’s Washington Wizards has also reportedly hit a roadblock.
However, these broken negotiations are without a doubt, a result of the market downturn happening in recent times.
The End of Crypto/Sports Partnership?
Certainly not. But as long as the market continues to stay down, new crypto/sports partnerships may not spring up. That is why Joe Favorito, a sports management professor at Columbia University said to the NY Post that:
“What money hasn’t been spent already you’re going to see curtailed – just like we saw during the dot-com bubble.”
Essentially, however, once the bulls resume, the partnerships will undoubtedly follow. This was just the case in the last crypto boom when crypto firms pumped out unbelievable amounts to push sports partnerships.
In that period, Crypto.com coughed out a whopping $700 million to name the home stadium of NBA’s LA Lakers Crypto.com Arena, in a 20-year deal. FTX also paid $135 million to name the Miami Heat’s home stadium, the FTX Arena.
Meanwhile, there are many more such deals, even in the soccer terrain and across the world of sports in general. And they run into hundreds of millions of dollars.
Interestingly though, despite the situation in the crypto market, NFT firms are looking unshaken. Last week, popular beer brand Budweiser still collaborated with NFT horse racing platform Zed Run.