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Crypto companies shelled out a record total of nearly $170 million on sponsorship deals with Premier League clubs for the 2024/2025 season based on data from SportsQuake.
According to an Oct. 7 Bloomberg report, sponsorships from crypto firms have come flooding into the pockets of Premiere League clubs.
As the League prepares to adjust to tightening regulations on gambling sponsorship, crypto firms have seized the opportunity by partnering up with football leagues for the first time.
Data from sports sponsorship agency SportQuake revealed that the sponsorship value coming from crypto firms have risen almost 30% compared to last year’s sponsorships.
CEO of SportQuake, Matt House, remarked that clubs have gotten more confident in making deals with crypto firms compared to last year when rules around cryptoasset marketing were tightened.
Meanwhile, crypto firms have grown much more “comfortable about what they can do”.
“We’re just going to use the Premier League to drive a brand message, we’re not actually pushing direct sales messages,” said House to Bloomberg.
One of the most notable partnerships between a crypto firm and a football club occurred in July 2024, when Kraken announced a partnership with Spanish football club Atlético de Madrid, making the crypto exchange become the official crypto and Web3 partner of the Madrid-based club.
As part of the deal, Kraken’s logo will be featured as Atletico’s official sleeve partner for both the men’s and women’s teams for the upcoming season.
Another crypto exchange, OKX, secured a deal last year to sponsor Manchester City, the Premier League’s reigning champions. While cryptocurrency ecosystem Floki has announced that it will sponsor Nottingham Forest.
In August, Crypto.com announced that it will sponsor Union of European Football Associations’ Champions League.
Crypto sponsorships changing the terms of football partnerships
Although more football clubs have embraced crypto sponsorships, contracts reveal that they still proceed with an air of caution.
According to lawyers at Charles Russell Speechlys to Bloomberg, companies that relatively new to the football scene — such as crypto firms — are required to shell out money up front.
Not only that, contracts may even include a boilerplate clause in case of reputational harm, which allows clubs to sever ties with a company if they deem there is a significant risk.
As a protective measure, rights holders can ask for a letter of credit, or a guarantee from a bank or parent company before securing a deal.
Although crypto firms are on the rise when it comes to football sponsorships, some clubs are still adamant in maintaining their sponsors from the gambling industry.
Bournemouth, Crystal Palace and Aston Villa are among the football clubs that have signed new sponsorship deals with betting companies this year despite the upcoming ban.