Crypto.com Backs off from a $495 Million Sponsorship

One of the biggest cryptocurrency exchanges Crypto.com has backed out from a sponsorship deal with the Union of European Football Associations Champion League.

The deal was supposed to run for five seasons, costing the crypto exchange $99 million a year, bringing the total deal value to $495 million. Concerns regarding crypto regulations have been cited as the reason for the deal to be terminated.

The exchange’s licensing arrangements in the United Kingdom, Italy, and France didn’t allow them to carry the deal forward. Had the deal been signed, the exchange would’ve received promotional branding for five years, estimated to be live until 2027.

Crypto.com introduced them as a sponsor after the Champions League decided to drop sponsorship from Gazprom, a energy firm owned by the Russian state. The Russian invasion of Ukraine along with parts of Europe abandoning the supply of oil and gas from Russia were reasons for the end of the previous partnership.

This decision was made to ensure that the countries weren’t in any way helping the nation fund the then ongoing war.

Crypto.com & Sponsorships

This is not the first time Crypto.com has been involved in a 9-figure sponsorship deal. The exchange has been quite active in securing promotional deals, especially the ones targeting sports fans.

In October last year, the firm had Matt Damon appear on its TV spot titled “Fortune Favors the Brave”. They’ve also announced a partnership with Formula 1 with the Aston Martin Team.

They’ve also had a $700 million agreement to rename the Los Angeles Staples Center into Crypto.com Arena. A $25 million deal was also signed with the Australian Football League. Overall, the exchange has spent more than a billion dollars on advertising and sponsorship deals.

Crypto.com is a decentralized crypto exchange based in Singapore. The exchange caters to more than 50 million users with its services and products that include more than 200 crypto assets. Among its many other features, the exchange has an NFT marketplace and staking services. Recently, amidst the market downfall, the exchange announced to lay off 260 people from their workforce which has more than 5000 employees. The market conditions could be playing a hand in determining the success of sponsorship deals for the platform.