Cryptocurrency exchange market Crypto.com is reportedly backing out of a $495 million sponsorship deal with UEFA and its premier football event the Champions League.
According to an exclusive report by SportBusiness, Crypto.com’s concerns lie around regulatory issues in key football markets such as France and Italy as a key factor for their decision to cancel the potential five-year deal. If the deal had gone through, it would have been the most lucrative in the competition’s history. Crypto.com was set to replace Gazprom after UEFA severed links with the Russian energy provider over the war in Ukraine. Concerns are thought to relate to potential legal trading restrictions.
According to UEFA, the crypto sector has greatly helped clubs to fill the revenue streams that were lost as a result of the COVID-19 pandemic. Critics however are concerned about the volatility of the crypto market, particularly that the plummeting price of tokens can expose fans to potential debts.
Crypto.com is the world’s fastest-growing cryptocurrency platform boasting over 20 million users worldwide. Headquartered in Singapore, the firm also has sponsorship deals with Formula 1, the Ice Hockey World Championship and the 2022 Fifa World Cup in Qatar.
The exchange also has major sponsorship deals in American sports even airing an advert featuring basketball legend LeBron James during TV coverage of the Super Bowl. Crypto.com also agreed to a 20-year, $700 million naming rights deal with the Los Angeles Lakers, changing the NBA franchise’s name from the Staples Centre, to the Crypto.com Arena.
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