At the end of September, we reported on the £126 million ($167.8 million) projected loss in combined gambling shirt sponsorships for England’s Premier League clubs as a result of the upcoming ban on gambling shirt sponsorships that will go into effect in the 2026-27 season.
However, as expected, a lot of clubs have already come up with quick solutions.
According to a report from SportsQuake, cryptocurrency companies have reached $170 million in money spent on sponsorship deals with Premier League clubs for the 2024/2025 season.
The record-breaking amount reflects a 30% increase in crypto sponsorship value compared to 2023.
Focus on Brand Messaging
SportsQuake’s chief executive officer, Matt House, commented that both clubs and crypto firms have become more confident in these deals.
After new rules on cryptoasset marketing were introduced last year, companies started to look for smart ways to adapt.
House noted that crypto companies are now focused on brand messaging rather than pushing direct sales.
An October 7 report by Bloomberg highlights the surge of crypto sponsorships as the league is getting ready to shift away from gambling sponsors due to tightening regulations.
One of the most prominent crypto partnerships happened in July 2024, when Kraken, one of the largest and oldest Bitcoin exchanges in the world, became the official crypto and Web3 partner of Atlético Madrid, one of Spain’s most successful clubs with an impressive record that includes 11 La Liga titles, 10 Copa del Rey titles, two Supercopas de España, one Copa Presidente FEF, and one Copa Eva Duarte.
As part of the deal, Kraken’s logo will appear on the sleeves of both the men’s and women’s teams. In July 2022, the club also confirmed WhaleFin as its new digital assets partner.
Kraken will also sponsor Tottenham Hotspur, the winners of one European Cup Winners’ Cup and two UEFA Cups, and RB Leipzig in Germany’s Bundesliga.
Innovative cryptocurrency exchange with advanced financial services OKX also extended a sponsorship deal with reigning Premier League champions Manchester City.
Floki, the company behind the people’s cryptocurrency and the utility token of the Floki Ecosystem announced it would sponsor Nottingham Forest, one of the six English clubs that have won the coveted UEFA Champions League trophy (on two occasions).
Additionally, Crypto.com, the platform that also owns the naming rights to Formula One’s Miami Grand Prix as well as the Los Angeles arena formerly known as the Staples Center, became a sponsor of the Union of European Football Associations’ (UEFA) Champions League in August.
The tournament will benefit from Crypto.com’s sponsorship until 2027.
Caution Is Still Advised
Despite the increase in crypto sponsorships, given the volatility and scandal that have plagued crypto over the years, contracts reveal that clubs still proceed with caution.
Bloomberg reports that newer companies such as crypto firms are often required to pay upfront and agree to clauses that would allow clubs to terminate the partnerships in case of reputational risk.
To further protect themselves, clubs may also demand letters of credit or guarantees from parent companies or banks.
While crypto firms continue to grow their presence in football sponsorships, some Premier League clubs, including Bournemouth, Crystal Palace, and Aston Villa, have opted to renew partnerships with gambling companies, even as a ban on gambling sponsorships looms.
Nonetheless, it is becoming more obvious that as the prime space is about to become vacant, crypto firms may be willing to upgrade their existing arrangements.
According to Arkham Intelligence’s chief executive officer, Miguel Morel, signing such agreements with soccer clubs worldwide is a “cheap and efficient way” of testing the market.
In July, the blockchain data analytics firm inked a two-season deal with Turkish side Galatasaray, agreeing to spend €1.8 million ($2 million) per season.