How much sponsorship has the sports industry received from the cryptocurrency industry?

Author: Prem Reginald, Coingecko

Compiled by: Deng Tong, Jinse Finance

The cryptocurrency world and sports sponsorship have gone through a wild journey. During the bull market of 2021, cryptocurrency companies dove into sponsoring some of the largest sports teams and events. However, as the market struggled in 2022, sponsorship volumes began to decline, wiping out 70-85% of cryptocurrency market value. Additionally, the collapse of FTX, once a major player in sports sponsorship, further accelerated this decline. But has the industry regained momentum in 2024?

How Much Cryptocurrency Sponsorship is in Sports?

As of September 2024, there have been 92 cryptocurrency sponsorships signed in the sports sector from 2021 to 2024. Below are the details of the sponsorship agreements signed over the years.

2021: The Boom of Cryptocurrency Sponsorship

2021 marked the peak of cryptocurrency involvement in sports, thanks to the bull market. A total of 33 new sponsorship agreements were reached across various sports leagues. This accounted for 35.9% of all sponsorship agreements signed from 2021 to 2024. Among them, FTX and Crypto.com were the major contributors, securing more than 5 new agreements throughout the year. The largest deal was Crypto.com acquiring the naming rights to the Staples Center for $700 million, along with FTX's striking $210 million sponsorship with esports equipment team Team SoloMid.

Other major collaborations included Zytara's $100 million sponsorship of Inter Milan and FTX's $135 million deal with Major League Baseball. These deals were strategic moves by cryptocurrency companies to gain mainstream attention and adoption.

2022: After the Crash

In 2022, the cryptocurrency bubble burst, leading to only 25 new deals, with 11 existing sponsorship agreements still active. FTX, once a key player in sports sponsorship, faced a significant blow from its collapse, resulting in the cancellation of deals such as its partnership with the Miami Heat.

However, some large sponsorship agreements were formed that year. Bybit secured a $150 million deal with the Red Bull Racing team, and Vechain signed a $100 million agreement with the UFC. Overall, as token values plummeted and skepticism about the entire industry grew, companies struggled to stay afloat, and the pace of new deals slowed.

2023: Further Decline

By 2023, the outlook did not improve as cryptocurrencies remained in a bear market. Only 8 new sponsorship agreements were signed, while 14 existing agreements were renewed. The effects of the crash and the aftermath of FTX were still felt, with investors and companies extremely cautious about large financial commitments. Nevertheless, OKX managed to secure a $70 million deal with Manchester City.

The decrease in new deals indicates ongoing market uncertainty, but companies like OKX are further investing in long-term partnerships.

2024: Slow Recovery

Interestingly, 2024 saw a slight recovery: 26 new sponsorship agreements were signed, while the 16 agreements from previous years remained active. However, this only accounted for 28.3% of all sponsorship agreements signed in the past four years. Crypto.com secured a second sponsorship agreement with the UEFA Champions League, while BlockDAG reached a $10 million deal with Borussia Dortmund (BVB) in the German Bundesliga. The number of new sponsorships has yet to surpass the levels of 2021, but the increase in activity suggests that cryptocurrency companies are slowly returning to the sports arena.

Cryptocurrency Sponsorship in Sports Events

Football

Since 2021, football has been a primary target for cryptocurrency sponsorship. That year saw 9 new deals, followed by 10 in 2022, a sharp drop to just 3 in 2023, and a rebound to 10 in 2024. Early adopters included clubs like Manchester United, Chelsea, Inter Milan, Manchester City, and Galatasaray. Cryptocurrency companies also targeted global events like the UEFA Champions League and the FIFA World Cup to attract football's massive international audience.

Motorsport

Motorsport, especially Formula 1 (F1), has been another hotbed for cryptocurrency sponsorship. There were 9 new sponsorship agreements in 2021, which dropped to 6 in 2022 and 3 in 2023. In 2024, only 3 new agreements were reached. Notable deals include Crypto.com’s $100 million agreement as the official cryptocurrency partner of Formula 1, one of the largest contracts in the sport. Bybit's $150 million deal with the Red Bull Racing team in 2022 truly solidified the connection between cryptocurrency and motorsport. Additionally, FTX signed a multi-year agreement with the Mercedes F1 team.

Esports

Esports has also attracted significant interest from cryptocurrency companies. New deals remained steady at 4 in both 2021 and 2022, then dropped to one deal in 2023. However, this year saw a positive turn with up to 7 new deals being reached. One standout deal was FTX's $210 million sponsorship with Team SoloMid in 2021. Coinbase also partnered with BLAST Premier to sponsor major Counter-Strike: Global Offensive (CS:GO) tournaments, recognizing its deep influence in the gaming community. In 2023 and 2024, Thunderpick emerged as a major sponsor, supporting teams like Evil Geniuses and Heroic during the organization of Counter-Strike 2 tournaments.

Basketball

Basketball, particularly the NBA, thrived in cryptocurrency sponsorship in 2021, with 6 new agreements. However, no new agreements were signed in 2022, and only one agreement was reached in both 2023 and 2024. Nonetheless, the sport received significant sponsorship when Crypto.com acquired the naming rights to the Staples Center for $700 million in 2021. Before the collapse of the Miami Heat, FTX had signed a $135 million naming rights agreement with the Miami Heat arena, and Coinbase also joined the trend by sponsoring both men's and women's leagues. The cryptocurrency exchange also signed an advertising agreement with Kevin Durant.

Sports with the Most Cryptocurrency Sponsorships

The ranking of sports by the number of cryptocurrency sponsorships from 2021 to 2024 is as follows:

Major Deals and Partnerships

FTX: The Most Active Sponsor

Before its collapse in 2022, FTX was one of the most active cryptocurrency companies in the sports sponsorship arena. In 2021, FTX signed landmark agreements, including a $210 million sponsorship deal with Team SoloMid (esports) and a $135 million agreement with Major League Baseball (MLB). FTX also partnered with NBA teams, securing a $135 million naming rights agreement with the Miami Heat arena and a $10 million sponsorship of the Golden State Warriors. Furthermore, FTX ventured into motorsport with a Formula 1 agreement with Mercedes. However, FTX's collapse left many of these partnerships in disarray, with sports organizations scrambling to fill the void.

Crypto.com's Extensive Influence in Sports

Crypto.com has become one of the dominant players in the sports sponsorship field, establishing partnerships across multiple sports and regions. The company's investments span various domains, from motorsport to basketball and football:

Basketball

In 2021, Crypto.com secured the naming rights to the Staples Center, home of the Los Angeles Lakers, in a historic $700 million deal, one of the largest sports sponsorships ever.

Motorsport

Crypto.com strengthened its ties to motorsport by partnering with Aston Martin's Formula 1 team and sponsoring Formula 1 itself for $100 million in 2021. They also sponsored the 2022 Formula 1 Miami Grand Prix, further solidifying their position in the motorsport arena.

Football

Football became another focus for Crypto.com. In 2021, they sponsored the Coppa Italia, with highlights from the match between Atalanta and Juventus minted as NFTs. Their football sponsorship continued into 2022, supporting the FIFA World Cup and the Australian Football League, and becoming an official sponsor of the UEFA Champions League in 2024.

Combat Sports

Crypto.com also ventured into combat sports, signing an agreement with the UFC in 2021, highlighting their interest in mixed martial arts.

Bybit and Red Bull Racing Team

In 2022, Bybit secured a $150 million sponsorship agreement with the Formula 1 Red Bull Racing team, solidifying its position in the motorsport world. The three-year partnership made Bybit one of the largest cryptocurrency sponsors in the sport.

Coinbase

Coinbase expanded its influence across various sports, signing multiple sponsorship agreements in 2021 and 2022. In 2021, Coinbase entered the esports world through a sponsorship deal with BLAST Premier and signed with NBA star Kevin Durant. Coinbase further ventured into traditional sports by partnering with the WNBA and securing a sponsorship agreement with Borussia Dortmund (BVB) in 2022, aimed at increasing visibility in European football.

Top Cryptocurrency Companies with the Most Sports Sponsorships

The top cryptocurrency companies with the most sports sponsorships from 2021 to 2024 are as follows:

Successful and Failed Partnerships

Success Stories

While the cryptocurrency market faces volatility, some partnerships have become long-term success stories, indicating that cryptocurrency companies can still make a lasting impact in the sports arena. Here are these thriving collaborations and the reasons they stand out:

Crypto.com's Diverse Portfolio and Ongoing Global Influence

Crypto.com has established itself as a global powerhouse in the sports sponsorship arena. Its sponsorship agreements are not limited to one sport but cover multiple areas, aligning with top sports like Formula 1, UFC, and football leagues with large international fan bases. These deals allow Crypto.com to engage with millions of fans worldwide, building strong brand loyalty. Despite the market crash, many of these partnerships continue to thrive, highlighting the resilience of the brand's strategic investments.

Bybit's Solid Position in Formula 1

Bybit's $150 million sponsorship agreement with the Red Bull Racing team in 2022 was a significant victory for the cryptocurrency exchange. As Formula 1 gains popularity worldwide, this partnership has allowed Bybit to reach a wealthy, tech-savvy fan base, helping to solidify its market position.

OKX's Strategic Move into Football

Despite the downturn in the cryptocurrency market, OKX successfully signed a significant $70 million sponsorship agreement with Manchester City in 2023. By aligning with one of the largest clubs in the world, OKX has increased its brand visibility in Europe and globally.

Failed Partnerships

FTX's Collapse and Consequences

FTX was one of the most active participants in sports sponsorship, but its dramatic collapse in 2022 led to multiple partnerships falling apart. Team SoloMid was hit hardest, as their $210 million deal fell through. Additionally, after FTX terminated its $135 million deal, the Miami Heat arena had to seek new sponsors. The $135 million deal with Major League Baseball also ended in failure, impacting its revenue stream from the partnership.

Voyager's Sponsorship of NASCAR

Cryptocurrency lending company Voyager faced bankruptcy in 2022, leading to the termination of its sponsorship agreement with NASCAR. Voyager's collapse not only left its customers in financial distress but also rendered its deal with NASCAR void, marking another failed partnership in the crypto sports arena.

Terra's Sponsorship of the Washington Nationals (Baseball)

After Terra's collapse, the $38.2 million deal it reached with the Washington Nationals in 2022 evaporated. The partnership aimed to promote Terra's stablecoin $UST, but it never fully materialized due to the company's bankruptcy announcement.

Why Do Cryptocurrency Companies Sponsor Sports Teams?

Since 2021, there has been a surge in sponsorship of sports by cryptocurrency companies, attributed to several key motivations. While traditional sponsorships typically aim to enhance brand visibility and customer engagement, cryptocurrency companies have unique reasons for entering the sports arena. Here are the core driving factors behind these partnerships:

Brand Awareness and Recognition

One of the primary reasons cryptocurrency companies sponsor sports teams is to enhance their brand visibility among a vast global audience. Sporting events, especially high-profile ones like Formula 1, UEFA Champions League, NBA, and FIFA World Cup, attract millions of viewers worldwide. By aligning with these major events, cryptocurrency brands can showcase their logos, messages, and identities to diverse audiences.

Legitimacy and Trust

The cryptocurrency industry has long faced skepticism from the public due to its volatility and association with high-risk investments and scams. Sponsoring well-known sports teams or events provides cryptocurrency companies with an aura of legitimacy. Collaborating with reputable sports brands allows cryptocurrency companies to present themselves as trustworthy and stable enterprises.

Fan Engagement and Adoption

Sports fans are passionate and highly engaged, making them an ideal audience for cryptocurrency companies looking to build deeper connections and drive product adoption. Through sponsorships, crypto platforms can directly promote NFTs (non-fungible tokens), fan tokens, and other blockchain products to fans. This enables them to bridge the gap between sports enthusiasts and the digital asset space, encouraging fan participation in crypto platforms.

Global Reach

Cryptocurrency is inherently global, and sponsoring sports with international fan bases allows these companies to tap into new markets. Sports sponsorship provides unparalleled access to a global audience, helping crypto brands break geographical barriers and reach customers beyond traditional tech circles.

Innovative Marketing Opportunities

Sponsorship also allows crypto companies to explore innovative marketing opportunities, such as offering exclusive NFTs, discounts, or crypto bonuses to sports fans. In turn, these interactions create new touchpoints for potential customers to explore cryptocurrency in a more approachable and engaging manner.