Crypto.com Pulls Plug on $495M Champions League Sponsorship Deal: Report

Cryptocurrency exchange Crypto.com has backed out of a five-year sponsorship deal worth $495 million with the UEFA Champions League, European soccer's elite competition, according to a <a href="https://www.sportbusiness.com/news/exclusive-crypto-com-pulled-out-of-huge-champions-league-sponsorship-at-last-moment/" target="_blank">report in SportBusiness</a>.

The deal, which had reportedly been agreed in principle, would have seen <a href="http://crypto.com/" target="_blank">Crypto.com</a> take over as sponsor from Russian-state owned energy company Gazprom. UEFA, Europe's governing body for soccer, cancelled the Gazprom contract in March following Russia's invasion of Ukraine.

<a href="http://crypto.com/" target="_blank">Crypto.com</a> scrapped the deal because of regulatory concerns in the U.K., France and Italy, with legal issues surrounding the scope of its licenses to trade and operate, SportBusiness said.

The Singapore-based exchange has taken a gung-ho approach to sports advertising over the past year, signing a 20-year naming deal with the Staples Center in Los Angeles for $700 million and piling $150 million into Formula One racing sponsorships. It also also <a href="https://www.coindesk.com/business/2021/10/28/cryptocom-looks-to-cash-in-on-bull-market-with-100m-advertising-campaign/" target="_blank">paid $100 million</a> for an advert featuring Hollywood actor Matt Damon as it looked to cash in on last year's bull market.

Since then, however, cryptocurrency prices have tumbled. Bitcoin has slumped from $69,000 in November to around $20,000 at the time of writing and the industry is bracing for what some call a <a href="https://www.coindesk.com/layer2/2022/08/08/9-survival-tips-for-crypto-winter/" target="_blank">"crypto winter."</a>

Neither Crypto.com nor UEFA immediately responded to CoinDesk's request for comments.

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