By
Kseniia Klichova
April 23rd, 2024
This partnership is believed to go beyond the training kits to explore the technology space including Web 3.0 and Metaverse to maximize opportunities.
Manchester United (NYSE: MANU), a two-time UEFA Champions League Winner has unveiled a £20 million per year training kit sponsorship with blockchain platform Tezos. This follows the recent conclusion of its £120 million sponsorship deal with an American Insurance Company Aon that ran for eight years.
Earlier decision to replace Aon PLC (NYSE: AON) with The Hut Group (LON: THG) collapsed after some Manchester United fans strongly campaigned against the Glazier’s family ownership of the club, calling on other fans to boycott its commercial partners. The club has been without a training shirt sponsor this season. However, it has decided to settle with Tezos after holding discussions with multiple companies.
Tezos has made a huge impression in the sports industry with several partnerships including the May 2021 deal with Red Bull Racing Honda. This deal was meant to see Tezos building the racing team its first-ever NFT. It has also become the New York Met’s first-ever blockchain deal. Not just that, it is the first of its kind across the 30 Major Leagues Baseball Outfit. Last month, Tezos became the technical partner of the French esports organization team Vitality. This is said to be one of the largest deals in European esports history.
According to reports, Manchester United sees the Tezos deal as a confidence booster, as they are assured that their commercial appeal to partners remains strong in their current state which is hugely affected by the pandemic. This partnership is believed to go beyond the training kits to explore the technology space including Web 3.0 and Metaverse to maximize opportunities.
The recent increase in scrutiny around football club partnerships with crypto and blockchain firms has raised concerns about the Tezos deal. Recently, Manchester City was not spared after announcing a partnership deal with regional crypto partner 3Key. It was said that the club did not do due diligence before finalizing the deal.
Tezos is backed by the Tezos Foundation. It is a blockchain or a type of decentralized computer network like Ethereum. There have been arising concerns of blockchain requiring a huge computer power in its transactions, which emits carbon. Interestingly, Tezos appears as an energy-efficient platform, and United perfectly conducted its due diligence before finalizing the deal.
Tezos came under serious challenge in the NFT industry after the chain’s largest marketplace HEN crashed. However, it stood above those challenges to cement its position as one of the best in the industry. With a market cap of $3 billion, Tezos is currently trading at $3.8 per coin and ranked as the 39th biggest crypto according to the CoinMarketCap rankings.