Regulatory concerns scupper Crypto.com UEFA deal
Singapore-based cryptocurrency exchange Crypto.com has backed out of a five-year sponsorship deal worth approximately $500 million with the UEFA Champions League, due to increasing regulatory concerns.
According to a report in SportBusiness, the deal would have taken over as a sponsor from Russian energy company Gazprom which was cancelled in March following Russia’s invasion of Ukraine.
Crypto.com is said to have scrapped the deal because of regulatory concerns in the UK, France and Italy, with legal issues surrounding the scope of its licenses to trade and operate.
The exchange had been a prolific sponsor of sporting events over the last couple of years, investing $150m in Formula One racing sponsorships and committing to a $700m, 20-year deal with Staples Centre in LA – meaning the iconic multipurpose venue is now known as the Crypto.com Arena.
Football meanwhile continues to embrace deals involving the promotion of digital assets with both Chelsea and Atletico Madrid signing an agreement with trading platform WhaleFin.
Cryptocurrency investors WAGMI United even acquired its own second division team – Crawley Town, which has since become the first English club to launch an NFT only football strip.
Since these deals were struck however, cryptocurrency prices have tumbled. The market capitalisation of digital assets has fallen to about $900 billion from a peak of almost $3 trillion in late 2021, according to the Bank of England, which is calling for tougher law enforcement and regulation.
Subscribe to our Editor's weekly newsletter