Crypto.com has pulled out of a massive sponsorship deal with UEFA for the Champions League, according to reports which say the deal was worth $495million over five seasons.
The website was set to replace gas company Gazprom as a sponsor after that deal was ditched following Russia’s invasion of Ukraine earlier this year.
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Many top football clubs have signed sponsorship deals with cryptocurrency companies over the past year but markets have taken a battering recently, with the price of Bitcoin falling 70 per cent from its peak in November.
Cryptocurrency firms’ involvement in football is coming under increasing scrutiny as the tanking price of tokens exposes fans to big potential losses.
The collapse of the Champions League deal, first reported by the website SportBusiness, is said to have fallen through at the “last moment” when Crypto.com pulled out.
SportBusiness reported that Crypto.com ditched the deal because of regulatory concerns in European countries creating legal issues for the company’s ability to trade and operate.
The cryptocurrency sector has come under increased scrutiny and criticism from fans, regulators and politicians who accuse the sector of selling risky and volatile financial products. Advocates say the sector is an exciting new frontier of finance and technology.
The cryptocurrency exchange — a website which enables people to buy and sell cryptocurrencies and makes money by charging fees — also has sponsorship deals with Serie A and the 2022 FIFA World Cup in Qatar.
The Singapore-based firm also has many major sponsorship deals in American sports, most notably a deal worth a reported $700million over 20 years to rename the Staples Center in Los Angeles to the Crypto.com Arena.
The Champions League has several major sponsorship deals including Heineken, Mastercard, Fedex, and Sony PlayStation.
The Athletic has approached UEFA and Crypto.com for comment. UEFA chose not to comment.
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