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0 CommentsCrypto exchange Crypto.com has pulled out of a $495-million sponsorship deal with the Union of European Football Association (UEFA) Champions League, citing legal issues it’s facing in some EU countries. Although, Crypto.com lasts a sponsorship for the FIFA 2022 Qatar World Cup, which runs in Qatar from November 21 to December 18.
According to SportBusiness, crypto exchange Crypto.com has backed out of a 5-year sponsorship deal worth $495 million with the UEFA Champions League, European soccer’s elite league.
The deal, which had reportedly been agreed in principle, would have seen Singapore-headquartered Crypto.com take over as sponsor from Russian-state-owned energy company Gazprom. UEFA, Europe’s governing body for soccer, canceled the Gazprom contract in March following Russia’s invasion of Ukraine.
Crypto.com 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, SportBusiness reported.
Last month, it received approval from the Financial Conduct Authority (FCA) in the UK to operate as a digital asset business. Further, registration and license were granted by South Korean authorities to Crypto.com to operate in the country as Virtual Asset Service Provide. The exchange also received licenses to operate in Italy, Cyprus, Singapore (in-principle), and Dubai (provisional) in the last two months.
According to some experts, crypto companies have spent $2 billion in sports sponsorship deals so far.
In November 2021, Crypto.com acquired the naming rights of Staples Center in Los Angeles for 20 years for $700 million. Now, it is called Crypto.com Arena. In March, the company signed a multi-year sponsorship deal with Aston Martin Cognizant Formula One Team, and in June – a 5-year sponsorship deal with Formula 1. The platform also reportedly paid $100 million to Hollywood actor Matt Damon for a TV commercial.
This March, Crypto.com also signed a sponsorship deal with FIFA for the 2022 Qatar World Cup, being held this year in Qatar. The Singapore-based company became the exclusive crypto trading platform for the famed sports event, which runs from November 21 to December 18.
