Crypto.com pulls out of €500m UEFA Champions League sponsorship

The cryptocurrency platform Crypto.com pulled out at the last moment from a five-year sponsorship deal worth €500m with the UEFA Champions League UEFA, according to SportBusiness.

According to the publication, the company was to replace Gazprom as the tournament’s title sponsor. The European football governing body terminated its contract with the Russian conglomerate in March following Russia’s invasion of Ukraine.

The agreements with Crypto.com envisaged a €100m per season payout by the platform, compared with around €40m from Gazprom.

According to SportBusiness sources, the parties had in principle agreed the deal and were close to signing. Presumably, in the federation’s history this represented the most advanced stage of negotiations at which a commercial contract collapsed.

Sources emphasised that Crypto.com’s decision not to sponsor was not tied to the crypto-market crisis. The company has faced legal issues in several key European countries, including the United Kingdom, France and Italy, with regard to the scope of its licences.

Octagon’s managing director, Phil Carling, drew attention to the shrinking flow of money from crypto to sport:

“Three months ago this was a hot sector, and they were offering crazy money for premium rights. Now we do not see anything like this in any of the processes we handle. I’m not saying this is forever; everything could return. But for now, large cash deals and the commission windfalls we were receiving have disappeared.”

According to the publication, Crypto.com has recently spent more than $1bn on sports sponsorships. Among others, this includes deals with:

• the Staples Center arena in Los Angeles ($700m);
• Formula 1 auto racing series;
• the UFC ($175m over 10 years);
• Australian Football League;
• FIFA World Cup in Qatar;
• the French club Paris Saint-Germain (no less than $25m over three years).

In February, Crypto.com, together with Coinbase and FTX, displayed a record amount of advertising during the Super Bowl. A 30-second spot cost $6.5m.

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