Crypto Sector Planning to Spend Over $160M On Sports Sponsorships
Sponsorships of sporting events, athletes, and other properties are some of the most lucrative contracts in the athletic world, with hundreds of millions of dollars being spent every year. 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.
Cryptocurrency platforms state that their goal is simply to “get their name out there” and promote brand recognition, a goal that succeeded at the 2022 Super Bowl between the Los Angeles Rams and the Cincinnati Bengals. Commercials featuring actors Matt Damon, Larry David, and others promoting the digital currency were seen by over 120 million Americans, in addition to an innovative advertisement by Coinbase that simply featured a QR code floating across a black background and nothing else.
Sports sponsorships by the sector are not just limited to apps or websites that allow you to buy and trade cryptocurrencies; they also feature NFTs. An NFT, or non-fungible token, is a special type of computer file that allows the owner to be recognized as the unique owner of a piece of digital artwork, photograph, video, or music clip. One unique company in this field is a platform simply called Autograph, founded by seven-time Super Bowl Champion Tom Brady, which (as the name suggests) allows fans of athletes and other celebrities to purchase digital autographs from their favorites. Autograph has raised over $170 million and is expected to use some of that money towards some form of sponsorship in the near future.
Sponsorships have become increasingly common in all forms of sports over the years, but cryptocurrency is quickly becoming one of the top industries to be involved. All mixed-martial artists in the Ultimate Fighting Championship (UFC) wear logos promoting crypto platforms on their octagon gear. The National Women’s Soccer League recently signed a massive sponsorship agreement with the crypto platform Voyager Digital that includes crypto payments to every player and training programs designed to help them learn about those investments.
With $160 million dollars spent by cryptocurrency platforms on sports sponsorships in 2022, it’s no surprise to find out that it’s been working. A recent study showed that sports fans were twice as likely to be familiar with and twice as likely to own cryptocurrency as their non-sports-watching counterparts. This success suggests that crypto platforms will continue to use these sponsorships for many years to come.