Sports organizations, athletes, and other properties sign some of the most lucrative sponsorship contracts in the athletic world, with hundreds of millions of dollars spent every year. Crypto expands sports sponsorships, and in 2022, one of the biggest industries to make their name in as a sponsor for various sports is the cryptocurrency sector.

Cryptocurrency is a digital currency that functions the same way as fiat currencies (like the United States Dollar or the Euro) but offers greater protection and privacy for its users. Like all currencies, cryptocurrency’s exact value changes constantly but the overall market continues to grow.

This year, it is expected that cryptocurrency platforms will spend over $160 million US Dollars on sponsorships for various sporting endeavors. One of the most noticeable examples is the arena in Los Angeles, California formerly known as The Staples Center changed its name last year to the Crypto.com Arena after an agreement was reached between the Los Angeles Lakers and the website.

Crypto’s Big Moment at the Super Bowl

Cryptocurrency platforms often state that their primary goal is to “get their name out there” and build brand recognition. This objective was successfully achieved during the 2022 Super Bowl between the Los Angeles Rams and the Cincinnati Bengals. Commercials featuring actors like Matt Damon and Larry David promoted digital currencies to an audience of over 120 million Americans. Additionally, Coinbase introduced an innovative advertisement featuring a floating QR code on a black background, capturing the curiosity of viewers.

NFTs and the Sports Connection

Crypto expands sports sponsorships in the sector, with involvement extending beyond just trading apps or platforms; they also extend to NFTs. A non-fungible token (NFT) is a unique digital asset that verifies ownership of artwork, photos, videos, or music clips. One standout company in this space is Autograph, a platform founded by seven-time Super Bowl Champion Tom Brady. As its name suggests, Autograph enables fans to purchase digital autographs from athletes and other celebrities. The company has raised over $170 million, with expectations of investing in sponsorships soon.

Crypto’s Expanding Presence in Sports

Sponsorships have long been a part of sports. However, cryptocurrency has quickly become a dominant player in this arena. It uses these partnerships as a powerful tool for brand recognition. In the Ultimate Fighting Championship (UFC), all mixed-martial artists wear crypto platform logos on their gear. This reinforces brand visibility among millions of viewers. Meanwhile, the National Women’s Soccer League (NWSL) secured a major sponsorship deal with Voyager Digital. The deal includes crypto payments for players and financial training programs to help them navigate their investments. By aligning with major sports organizations, cryptocurrency platforms strengthen their brand recognition. This also helps expand their influence in the global market.

The Impact of Crypto Sponsorships

With cryptocurrency platforms spending $160 million on sports sponsorships in 2022, it’s clear that this strategy is effective. High-profile events like the Super Bowl, where teams such as the Cincinnati Bengals compete on a global stage, have provided crypto companies with massive exposure. A recent study revealed that sports fans are twice as likely to be familiar with and own cryptocurrency compared to those who don’t follow sports. This success strongly suggests that crypto platforms will continue leveraging sports sponsorships for years to come.