Cryptocurrency firms are determined to provide the financial muscles for England football clubs as the ban on betting companies sponsorship of Premier League nears.
Already, crypto firms have spent a “record amount” of almost $170M on deals for the 2024-25 English Premier League season and is bound to increase further, with more partnerships often announced during the season, according to a Bloomberg report of Tuesday.
For Premier League teams grappling with gambling restrictions, crypto’s push is an “opportunity to open up a new source of income.” Major deals are happening across the continent, with many firms “linking up with football leagues for the first time.”
Debut partners for 2024 include crypto exchange Kraken, which sponsors Tottenham Hotspur, La Liga club Atlético Madrid and Bundesliga club RB Leipzig. The focus of the deals is “broad brand promotion such as company logos and names on pitchside hoardings, stadium posters and team kits.”
Sponsors can become a team’s “crypto and web3 partner,” offering “competitions, behind-the-scenes access to games and exclusive content.” The volatility and scandal that has plagued crypto is “also affecting the terms” of the deals.
While sponsors from more longstanding or reputable sectors may pay for deals over time, it is “common for newer entrants, particularly those in crypto to be required to shell out up front.”
Contracts may also include “boilerplate clauses” about significant reputational harm, which allows teams to “divorce themselves from the deal if a company’s standing plummets.” And to protect themselves even further, rights holders can “ask for a letter of credit, or a guarantee from a bank or parent company to secure a deal.”
