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Cryptocurrency teams up with major European football club to usher in a new era of sports marketing.
Sponsorship deals between cryptocurrency companies and big-name soccer teams have been particularly hot this season, with the latest deals involving blockchain company BlockDAG and two of Europe's top clubs, Italy's Inter Milan and Germany's Borussia Dortmund.
BlockDAG, which operates a so-called “layer 1” blockchain, has committed to spending $10 million over three years to display its branding at Borussia Dortmund's home stadium and on various social media platforms. The German team also extended its partnership with Coinbase, the largest cryptocurrency exchange in the United States, for another three years.
FTX cryptocurrency derivatives exchange co-founder Sam Bankman Freed leaves a court in New York, USA, on Wednesday, July 26, 2023. (Photographer: Yuki Iwamura/Bloomberg via Getty Images/Getty Images)
BlockDAG also announced it would provide Inter Milan with an additional $5 million for similar marketing opportunities, marking the Italian club's second crypto sponsorship deal this year alongside Chinese crypto exchange Gate.io, whose logo appears on the sleeves of players' jerseys.
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“This collaboration not only elevates our brand, but also places us at the forefront of blockchain adoption in mainstream sports,” said Antony Turner, CEO of BlockDAG. “We're excited to explore the synergies this partnership brings and introduce the power of BlockDAG to millions of football fans around the world.”
The move is part of a broader effort by crypto companies to grow their customer base, and has seen sports teams and leagues show a renewed willingness to partner with crypto companies following the collapse of now-defunct crypto exchange FTX.
Representations of cryptocurrencies can be seen in this illustrated photo taken on November 14, 2022 in Krakow, Poland. ((Photo by: Jakub Porzycki/NurPhoto via Getty Images)/Getty Images)
Formerly run by convicted fraudster Sam Bankman Freed, FTX became known for its brand partnerships with sports stars such as Tom Brady and Stephen Curry, as well as splashy sponsorship deals, such as renaming the Miami Heat's stadium the “FTX Arena” in 2021. Throughout its brief heyday, FTX invested approximately $375 million into various sports teams and leagues, including the National Basketball Association, Major League Baseball, and the National Hockey League. The collapse of the exchange and Bankman Freed's indictment and subsequent conviction cast a shadow over the entire $2 trillion cryptocurrency market, leading to a significant decline in crypto and Web3 sponsorships as companies grew wary of the digital assets industry.
Two years on, collaborations with cryptocurrency companies appear to be on the rise again, at least in the world of soccer.
“We are thrilled to welcome BlockDAG as our official blockchain partner,” said Alessandro Antonello, CEO of Inter Milan. “Inter has always been at the forefront of innovation and this partnership aligns with our vision to embrace new technologies that allow us to better connect with our fans and partners around the world.”
This trend is also reflected in the numerous cryptocurrency deals that have been concluded this year.
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In July, U.S. cryptocurrency exchange Kraken inked a sponsorship deal with English Premier League team Tottenham Hotspur, becoming the club's first official crypto and Web3 partner. Kraken also inked a deal with Spain's Atletico Madrid, just a year after announcing a branding deal with Williams Racing, one of the world's leading Formula 1 teams.
A new bitcoin token was announced at the NFT.NYC 2024 conference in New York, USA, on Wednesday, April 3, 2024. Once touted as the cutting edge of the digital frontier, NFTs have suddenly become the butt of jokes in the recent cryptocurrency bubble burst. (Photographer: Timothy Fadek/Bloomberg via Getty Images/Getty Images)
Like BlockDAG, Kraken’s targeting of the soccer fanbase is strategic.
“Kraken's marketing research shows that over 75% of our core users in Europe are passionate soccer fans,” Mayur Gupta, Kraken's chief marketing officer, told Fox Business. “Through our partnerships with top clubs like Tottenham and Atletico Madrid, we hope to bridge the worlds of soccer and cryptocurrency and provide meaningful experiences that resonate with fans and bring them closer to the core values and core values of cryptocurrency.”
Meanwhile, 14 of the 20 clubs in England's Premier League have signed deals with 15 different crypto sponsors for the 2024/2025 season, Singapore-based exchange Crypto.com announced a partnership with the UEFA Champions League, while in the United States, Major League Soccer's Inter Miami has partnered with cryptocurrency protocol Polkadot.
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BlockDAG has also hinted that partnerships with English Premier League teams may be in the works.
“Football's global appeal and cultural importance provides us with an opportunity to reach a wider audience, which aligns with our marketing strategy and supports our mission to accelerate the adoption of cryptocurrencies around the world,” Gupta added.
