The Beautiful Game of Crypto: How Cryptocurrency is Reshaping Football Sponsorships

The growing relationship between cryptocurrency and football is reshaping sports sponsorship, with Italy's Serie A leading the way.

Serie A club AC Milan has partnered with Telegram-based crypto casino TG. Casino, making the online gambling platform the club’s official regional iGaming partner in August 2024.

This partnership will provide AC Milan fans with exclusive access to behind-the-scenes tours at the Milanello training ground and VIP experiences at the San Siro stadium.

Fans who hold TG. Casino’s $TGC tokens will benefit the most from this partnership.

Holders of the tokens will be eligible for various experiences, including behind-the-scenes tours of the Milanello training ground and VIP experiences at the iconic San Siro stadium.

By partnering with AC Milan, TG. Casino aims to expand its brand presence in the competitive iGaming market.

This trend is not limited to Italian football. As sponsorship negotiations for the 2024–25 season reach record highs, the English Premier League has also welcomed cryptocurrency partnerships, contributing about £130 million to the league.

This shift comes as gambling sponsorships, which have been a major source of revenue for many Premier League teams, are now facing tighter regulations.

As a result, clubs are actively seeking alternative revenue streams, making several crypto and Bitcoin start-ups appealing partners.

Part of this increase in crypto sponsorships is due to clubs’ growing confidence in these financial firms.

A year ago, concerns about regulatory scrutiny made clubs hesitant to enter such partnerships, but now, with clearer regulations in place, they feel more secure.

Moreover, crypto companies have adjusted their strategies, focusing more on brand awareness rather than direct sales.

One notable deal in the Premier League is Kraken’s partnership with Tottenham Hotspur.

As one of the world’s largest cryptocurrency exchanges, Kraken has become the official crypto and Web3 partner for Tottenham in the 2024/25 season.

This partnership goes beyond simply displaying the Kraken logo; it aims to use Web3 technologies to create new avenues for fan interaction, such as virtual experiences and blockchain-based rewards programs.

Another significant deal involves Manchester City and OKX, a well-known crypto exchange.

Valued at $70 million, this partnership highlights the substantial investments crypto companies are willing to make to align with top-tier football clubs.

With Manchester City’s strong international presence, OLX stands to improve its visibility in key markets.

However, not all crypto-related sponsorships are with top clubs. Nottingham Forest has partnered with Floki, a cryptocurrency token inspired by Elon Musk’s Shiba Inu dog.

This collaboration highlights the diverse range of crypto companies eager to enter the sports world, from major exchanges to niche tokens.

Floki aims to leverage football’s global popularity to draw attention to its offerings and enhance its brand visibility within the competitive cryptocurrency market.

Crypto sponsorships are also reaching beyond individual clubs to embrace major competitions.

Crypto.com has secured a sponsorship deal with UEFA’s Champions League that runs until 2027, highlighting the crypto industry’s ambition to align with Europe’s elite football tournaments.

This high-profile partnership gives crypto brands a place in the global football narrative, potentially exposing them to millions of fans worldwide.

Despite this growing trend, some Premier League clubs are approaching crypto partnerships cautiously.

The volatile nature of the cryptocurrency market has led many clubs to include protective clauses in their contracts, such as upfront payments and exit options in case of reputational harm.

These measures reflect an understanding that while crypto sponsorships can be lucrative, they also carry risks due to market fluctuations and potential regulatory issues.

The timing of these partnerships is particularly significant as the Premier League prepares for a ban on front-of-shirt gambling advertisements set for the 2026/27 season.

In the 2023/24 season, eight Premier League teams had front-of-shirt gambling sponsors that generated nearly $80 million annually.

With gambling sponsorships declining, cryptocurrency firms are seen as potential solutions to fill this financial gap.

However, not all Premier League teams have jumped on the crypto bandwagon.

Clubs like Brighton & Hove Albion, Brentford, Fulham, Ipswich, Liverpool, and AFC Bournemouth currently do not have crypto-related sponsors for the 2024/25 season.

Some have shown interest in exploring such partnerships in the past, indicating that the landscape may change as the season progresses.

These partnerships often extend beyond financial backing; cryptocurrency companies aim to leverage blockchain technology to enhance fan engagement and create new revenue streams for clubs.

Some collaborations involve fan tokens or NFTs, providing supporters unique ways to connect with their favourite teams.

As the 2024/25 Premier League season unfolds, the impact of these crypto partnerships will become clearer.

Clubs and their sponsors will closely monitor fan reactions and regulatory developments while assessing how well these collaborations perform.

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