Author: Prem Reginald, Coingecko; Translator: Deng Tong, Golden Finance
It's been a wild ride between the world of crypto and sports sponsorship. During the bull run of 2021, crypto companies dove headfirst into sponsoring some of the biggest sports teams and events. However, when the market tanked in 2022, sponsorship volumes began to decline, wiping out 70-85% of the crypto market cap. Furthermore, the collapse of FTX, once a major player in sports sponsorship, further accelerated the decline. But has the industry regained momentum in 2024?
As of September 2024, 92* cryptocurrency sponsorships have been signed in sports between 2021 and 2024. Here is a breakdown of sponsorship deals signed over the years.
2021 marked the peak of cryptocurrency involvement in sports, thanks to the bull run. A total of 33 new sponsorship deals were signed across sports leagues. This accounts for 35.9% of all sponsorship deals signed between 2021 and 2024.Of these, FTX and Crypto.com were the main contributors, striking more than 5 new deals throughout the year. The largest deals were Crypto.com’s $700 million acquisition of the naming rights to the Crypto.com Arena at the Staples Center and FTX’s headline-grabbing $210 million sponsorship with esports outfit Team SoloMid.
Other major partnerships included Zytara’s $100 million sponsorship of Inter Milan and FTX’s $135 million deal with Major League Baseball. These deals are strategic moves by cryptocurrency companies to gain mainstream attention and adoption.
In 2022, the cryptocurrency bubble burst, causing new deals to drop to just 25, with 11 existing sponsorship agreements still active. FTX had been a key player in the sports sponsorship space, but its collapse dealt a major blow to the industry, resulting in the cancellation of deals such as its partnership with the Miami Heat.
Some large sponsorship deals were formed that year, however. Bybit reached a $150 million agreement with the Red Bull Racing team, and Vechain signed a $100 million agreement with the UFC. Overall, though, the pace of new deals slowed as companies struggled to stay afloat as token values fell sharply and skepticism grew about the entire industry.
In 2023, the outlook did not improve as cryptocurrencies were in a bear market. Only 8 new sponsorship deals were signed, while renewals of existing deals reached 14. The effects of the crash and FTX fallout are still lingering, with investors and companies extremely cautious about large financial commitments. Despite this, OKX landed a $70 million deal with Manchester City.
The decline in new deals suggests that there is still uncertainty in the market, but companies like OKX are further investing in long-term partnerships.
Interestingly, 2024 saw a slight recovery: 26 new sponsorship deals were signed, while 16 deals from previous years remained in force. However, this only accounts for 28.3% of all sponsorship deals signed in the past four years. Crypto.com signed its second sponsorship deal with the UEFA Champions League, while BlockDAG reached a $10 million deal with Borussia Dortmund (BVB) of the German Bundesliga. The number of new sponsorships has not yet exceeded 2021 levels, but the increase in activity shows that cryptocurrency companies are slowly returning to the sports sector.
Football has been a major target for cryptocurrency sponsorship since 2021. There were nine new deals that year, followed by 10 in 2022, a sharp drop to just three in 2023, and a rebound to 10 in 2024. Early adopters include clubs such as Manchester United, Chelsea, Inter Milan, Manchester City and Galatasaray. Crypto companies are also targeting global events like the UEFA Champions League and the FIFA World Cup to tap into soccer’s massive international audience.
Motorsport, especially Formula One (F1), is another hotbed for crypto sponsorships. There were nine new sponsorship deals in 2021, dropping to six in 2022 and three in 2023. In 2024, only three new agreements were signed. Notable deals include Crypto.com’s $100 million deal as the Official Crypto Partner of Formula One, one of the largest contracts in the sport. Bybit’s $150 million deal with Red Bull Racing in 2022 really solidified the connection between crypto and motorsport. Additionally, FTX has signed a multi-year agreement with the Mercedes F1 team.
Esports has also seen a lot of interest from crypto companies. New deals remained constant at 4 deals in 2021 and 2022, before falling to one deal in 2023. However, there was a positive turn this year, with as many as 7 new deals struck. One of the standout deals was FTX’s $210 million sponsorship with Team SoloMid in 2021. Coinbase also sponsored a major Counter-Strike: Global Offensive (CS:GO) tournament in partnership with BLAST Premier, in recognition of its deep influence in the gaming community. Thunderpick was a major sponsor in 2023 and 2024, supporting teams like Evil Geniuses and Heroic when organizing Counter-Strike 2 tournaments.
Basketball, especially the NBA, thrived in crypto sponsorships in 2021, with 6 new sponsorship deals. However, no new deals were struck in 2022, and only one deal was signed in 2023 and 2024. Still, the sport got a big sponsorship boost when Crypto.com bought the naming rights to the Staples Center for $700 million in 2021. FTX had a $135 million naming rights deal with the Miami Heat arena before the team folded, and Coinbase has also joined the trend, sponsoring both the men’s and women’s leagues. The cryptocurrency exchange has also signed an advertising deal with Kevin Durant.
Sports ranked by the number of cryptocurrency sponsorships between 2021 and 2024 are as follows:
Before its demise in 2022, FTX was one of the most active crypto companies in sports sponsorships. In 2021, FTX signed landmark deals, including a $210 million sponsorship deal with Team SoloMid (esports) and a $135 million deal with Major League Baseball (MLB). FTX also partnered with NBA teams, striking a $135 million naming rights deal for the Miami Heat’s arena, and sponsoring the Golden State Warriors for $10 million. Additionally, FTX branched into motorsports, striking a Formula 1 deal with Mercedes. However, FTX’s demise threw many of these partnerships into disarray, with sports organizations scrambling to fill the void.
Crypto.com has become one of the most dominant players in sports sponsorships, with partnerships across multiple sports and geographies. The company’s investments span everything from motorsports to basketball and football:
Basketball
In 2021, Crypto.com acquired the naming rights to the Staples Center, home of the Los Angeles Lakers, in a historic $700 million deal, one of the largest sports sponsorships of all time.
Motorsports
Crypto.com has strengthened its ties to motorsports by partnering with Aston Martin’s Formula 1 team and sponsoring Formula 1 itself for $100 million in 2021. They have also sponsored the 2022 Formula 1 Miami Grand Prix, further solidifying their presence in the motorsports space.
Football
Football becomes another focus for Crypto.com. In 2021, they sponsored the Italian Cup, and highlights from the match between Atalanta and Juventus were minted as NFTs. Their football sponsorship continues until 2022, with the company supporting the FIFA World Cup and the Australian Football League, and becoming an official sponsor of the UEFA Champions League in 2024.
Combat Sports
Crypto.com has also dabbled in combat sports, striking a deal with the UFC in 2021, highlighting their interest in mixed martial arts.
Bybit and Red Bull Racing
In 2022, Bybit solidified its position in the world of racing with a $150 million sponsorship deal with Formula 1 Red Bull Racing. The 3-year partnership makes Bybit one of the sport’s largest cryptocurrency sponsors. Coinbase has expanded its presence across a variety of sports, signing multiple sponsorship deals in 2021 and 2022. In 2021, Coinbase entered the world of esports through a sponsorship deal with BLAST Premier and signed NBA star Kevin Durant. Coinbase has further expanded into traditional sports, partnering with the Women's NBA and signing a sponsorship deal with Borussia Dortmund (BVB) in 2022, aiming to increase the profile of European football.
The top cryptocurrency companies with the most sports sponsorships between 2021 and 2024 are as follows:
While the cryptocurrency market has faced volatility, some partnerships have become long-term success stories, showing that crypto companies can still make a lasting impact in the world of sports. Here are some of these thriving collaborations and why they stand out:
Crypto.com’s Diverse Portfolio and Continued Global Reach
Crypto.com has established itself as a global powerhouse in the sports sponsorship space. Its sponsorship deals are not limited to just one sport, but span multiple areas and align with top sports such as Formula 1, UFC, and soccer leagues with large international fan bases. These deals have enabled Crypto.com to engage with millions of fans around the world, building strong brand loyalty. Many of these partnerships have persisted despite the market crash, highlighting the resilience of the brand’s strategic investments.
Bybit’s Solid Position in Formula 1
Bybit’s $150 million sponsorship deal with Red Bull Racing in 2022 is a major win for the cryptocurrency exchange. As Formula 1 continues to grow in popularity around the world, the partnership gives Bybit access to an affluent, tech-savvy fan base, helping it to solidify its position in the market.
OKX’s Strategic Move into Soccer
Despite the cryptocurrency market’s decline, OKX successfully signed a major sponsorship deal with Manchester City worth $70 million in 2023. By aligning with one of the world’s largest clubs, OKX has increased its brand awareness in Europe and globally.
FTX was one of the most active players in the sports sponsorship space, but its dramatic collapse in 2022 led to the collapse of multiple partnerships. Team SoloMid was the most affected as their massive $210 million deal fell through. Apart from this, the Miami Heat’s arena had to look for a new sponsor after FTX terminated its $135 million deal. Major League Baseball’s $135 million deal fell through, affecting its revenue streams from the partnership.
Crypto lending company Voyager faced bankruptcy in 2022, leading to the termination of its sponsorship deal with NASCAR. Not only did Voyager’s demise leave its clients in financial straits, it also voided its deal with NASCAR, marking yet another failed partnership in the crypto sports space.
Terra’s $38.2 million deal with the Washington Nationals for 2022 came to naught following Terra’s demise. The partnership was intended to promote Terra’s stablecoin $UST, but it never fully came to fruition as the company declared bankruptcy.
Since 2021, there has been a surge in sports sponsorships by crypto companies, which can be attributed to several key motivations. While traditional sponsorships are often aimed at increasing brand awareness and customer engagement, crypto companies have unique reasons for entering the sports space. Here is a breakdown of the core drivers behind these partnerships:
One of the main reasons why crypto companies sponsor sports teams is to increase their brand awareness among a large global audience. Sporting events, especially high-profile ones like Formula 1, the UEFA Champions League, the NBA, and the FIFA World Cup, attract millions of viewers around the world. By aligning with these major events, crypto brands can get their logos, messaging, and identity in front of different audiences.
The cryptocurrency industry has long been viewed with suspicion by the public due to its volatility and association with high-risk investments and scams. Sponsoring well-known sports teams or events provides crypto companies with an aura of legitimacy. Partnering with well-known sports brands allows crypto companies to present themselves as credible and stable businesses.
Sports fans are passionate and highly engaged, making them an ideal audience for crypto companies looking to build a deeper connection and drive adoption of their products. Through sponsorships, crypto platforms can promote NFTs (non-fungible tokens), fan tokens, and other blockchain products directly to fans. This allows them to build a bridge between sports fans and the digital asset space, encouraging fan engagement with crypto platforms.
Crypto is global in nature, and sponsoring sports with international fan bases enables these companies to tap into new markets. Sports sponsorships provide unparalleled access to a global audience, helping crypto brands break through geographic barriers and reach customers outside of traditional tech circles.
Sponsorships also enable crypto companies to explore innovative marketing opportunities, such as offering exclusive NFTs, discounts, or crypto bonuses to sports fans. In turn, these interactions create new touchpoints where potential customers can explore crypto in a more approachable and engaging way.
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