It seems crazy that a company like Crypto.com would spend hundreds of millions on securing sponsorship deals with big brands like Los Angeles Lakers and Clippers, LA Kings, and the women’s basketball team LA Sparks.
The decision of the company to invest a mind-boggling $700 million into the project of renaming the Staples Center into Crypto.com Arena seems to be a little outlandish.
It is all about pumping money
VeChain’s “investment” in a simple logo that would be ingrained in the flooring of UFC arenas was more than $100 million. It is certainly not a bad move, but does it pay off in the long run?
How many people in the UFC fandom are members of the target audience for VeChain? It is a question that we will likely never receive an answer to.
On the other hand, there are interesting deals between companies that can benefit from the partnership in the long run. For example, Red Bull’s F1 Racing Team is regularly short on funding but won’t take money from direct competitors of the parent brand or companies that do not mesh well with the public image of the company.
However, partnering with ByBit seems to be a good fit. The crypto exchange receives very good publicity and Red Bull receives much-needed funding to keep their team going.
The deal size between RB and ByBit is $150 million over three years. Is it that good in the long run? Only time can tell. However, it looks like more crypto industry representatives are willing to invest in such deals to secure good marketing opportunities for years to come.
The whole industry is reimagining itself
Sports teams and athletes are not where the involvement of sport-adjacent brands in the development of the crypto industry ends. For example, Nike decided to foray into the world of NFTs.
La Liga, Bundesliga, and many other sports leagues are developing crypto related projects such as NFT-based fantasy games. We have a new exciting landscape for athletes and cryptocurrencies where marketing opportunities are endless and benefits for both sides are apparent!
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