Crypto sponsorships with Premier League reach record high amidst gambling sponsor ban

Crypto companies have allocated a record total of approximately $170 million to sponsorship deals with Premier League clubs for the 2024/2025 season, according to data from SportsQuake.

According to an October 7 Bloomberg report, sponsorships from crypto companies have started flowing into the pockets of Premiere League clubs.

As the league prepares to comply with tightening regulations on gambling sponsorship, crypto companies have seized the opportunity by partnering with football leagues for the first time.

Data from sports sponsorship agency SportQuake has revealed that sponsorship value from crypto companies has increased by almost 30% compared to last year’s sponsorships.

SportQuake CEO Matt House stated that clubs have become more confident in making deals with crypto companies compared to last year, when rules on crypto asset marketing were tightened.

Meanwhile, crypto firms have become “much more comfortable with what they can do.”

“We’re just going to use the Premier League to deliver a brand message; we’re not actually delivering direct sales messages,” House told Bloomberg.

One of the most notable partnerships between a crypto firm and a football club occurred in July 2024, when Kraken announced a partnership with Spanish football club Atlético de Madrid, making the crypto exchange the official crypto and Web3 partner of the Madrid-based club.

As part of the deal, the Kraken’s logo will feature as the official sleeve partner of both Atletico’s men’s and women’s teams next season.

Another crypto exchange, OKX, signed a deal to sponsor reigning Premier League champions Manchester City last year. Cryptocurrency ecosystem Floki announced that it will sponsor Nottingham Forest.

In August, Crypto.com announced that it would sponsor the Union of European Football Associations Champions League.

Crypto sponsorships change the terms of football partnerships

Although more football clubs have embraced crypto sponsorship, contracts still show caution.

Companies that are relatively new to the football scene (like crypto companies) are required to pay the money upfront, according to lawyers from Charles Russell Speechlys who spoke to Bloomberg.

Not only that, contracts may even include a standard clause allowing clubs to sever ties with a company if they feel there is a significant risk of reputational damage.

As a protective measure, rights holders may seek a letter of credit or guarantee from a bank or parent company before securing a deal.

While crypto firms are on the rise when it comes to football sponsorships, some clubs are still determined to keep their sponsors away from the gambling industry.

Despite the upcoming ban, Bournemouth, Crystal Palace and Aston Villa are among the football clubs that signed new sponsorship agreements with betting companies this year.