Bitcoin has grown into a force in the financial world. From its humble beginnings when most thought it was just a scam, it’s grown into a gigantic worldwide brand now. The sports industry is one that has taken notice in a major way. Throughout all types of popular sports franchises from the Premier League to Formula One and the UFC, crypto sponsorships are big business.
While it’s not always been a smooth road, there’s still plenty of evidence to indicate that there will be more famous deals to be made in future. However, for now, a lot will depend on how well existing ones go and how crypto as a whole is perceived in the coming years.
How Bitcoin is Regulated in Various Regions
Bitcoin is simultaneously gaining traction across various industries, including tech, finance, entertainment, and online gaming. Its decentralized nature appeals to businesses seeking alternatives to traditional banking systems. This has led many to wonder, are there restrictions for Bitcoin use in some countries?
While crypto is still fairly marginalized in many industries, iGaming has embraced its use. As a result, specialized Bitcoin casinos have become a huge trend worldwide. According to iGaming expert Wilna van Wyk, these platforms offer benefits like faster transactions, lower fees, and enhanced privacy. As a bonus, they also act as incubators for lending credibility to the concept of crypto becoming a mainstream currency.
However, in a broader sense, some countries like El Salvador, have embraced Bitcoin as legal tender. Meanwhile, others like China and Morocco have imposed strict bans or restrictions on its use. It’s also proven more easily accepted in some sectors than others. This reflects what a complex legal undertaking it can be to be in business with Bitcoin or a major brand associated with it.
Despite this, right now, there’s also no doubting what a massive draw it can be. Having shown staggering levels of growth, there’s no denying its economic potential anymore. However, what does matter is how volatile it can be.
Bitcoin’s Influence on Sports Sponsorships
Bitcoin has become so influential, it’s now even being used beyond sponsorship. In the case of Premier League club Southampton FC, Bitcoin is even being used as a way to pay bonuses. As a means of shifting toward digital currencies, moves like this have been groundbreaking.
These partnerships are not without challenges though. The volatility of Bitcoin's value can pose financial risks. Simultaneously, regulatory changes can swiftly upend everything. Time will tell how well regulatory agencies are able to cater to such deals.
A Mixed Bag of Successes and Setbacks
Bitcoin and sports have come together for a range of famous deals in the past—not all ended well. Among many triumphs and massive deals, there have been setbacks too. Some of these have been gigantic and even threatened to tank the entire concept of the two industries working together at all.
Among the successes, one notable example is the partnership between Crypto.com and the Los Angeles Lakers, resulting in the renaming of the Staples Center to Crypto.com Arena in a deal reportedly worth $700 million. This move signified a major milestone in crypto's integration into mainstream sports.
In contrast, 2022’s FTX scandal rocked the crypto world. As a result, it led to the termination of several high-profile sponsorships. At that point, the brand had naming rights deals with massive sport franchises like the Miami Heat, Major League Baseball teams, and the Mercedes F1 team. These incidents offered a stark look at the unpredictable nature of partnering with the crypto industry.
Despite this, new deals are being signed all the time, many of which are massively lucrative for all involved. It seems crypto partnerships in sports are from over and, perhaps, are just getting started.