Cryptocom downsizes some sports partnership deals amid marke | Crypto Retro
Cryptocom downsizes some sports partnership deals amid market downturn.
The crypto exchange reportedly cut the scope of sponsorship agreements inked with sports organizations including the Angel City Football Club, the 2022 FIFA World Cup and Twitch Rivals.
Cryptocurrency exchange Cryptocom has reportedly reduced the scale of many of its sponsorship deals with sports organizations amid staff cuts and the market downturn.
According to an Oct. 6 report, Ad Age tech reporter Asa Hiken said Cryptocom cut the scope of sponsorship agreements inked with major sports organizations including Los Angeles' Angel City Football Club, the 2022 FIFA World Cup in Qatar and esports tournament host Twitch Rivals — in some cases reportedly attempting to pull out of the deals entirely. Hiken cited unnamed former and current Cryptocom employees, who said the crypto exchange had begun considering such actions following the market downturn in May.
“The other shoe has dropped for a crypto firm that marketed really big when number was up,” said Hiken. “Now that number is down, the firm is grappling with its own costly decisions.”
Lawyers for Angel City reportedly claimed the crypto exchange withheld payments and eventually backed out of the deal, first announced in December 2021. In addition, the firm reportedly decided on plans to dissolve its partnership with Twitch Rivals, with both companies agreeing to finish the deal by the end of 2022. A former Cryptocom employee alleged the firm may have cut the number of hospitality packages it planned to issue as part of the FIFA deal by half.
Cryptocom has made a number of highprofile marketing deals in the last 12 months, from recruiting actor Matt Damon to appear in its "Fortune Favors the Brave" ad campaign to signing a $700-million agreement to rename the Staples Center in Los Angeles as the Cryptocom Arena. The crypto exchange has reportedly continued to move forward with the multimillion-dollar renovation.
Cointelegraph reported in September that Cryptocom had dropped out of a half-billion-dollar sponsorship deal with the Union of European Football Associations Champions League. The report implied that other major partnerships with the exchange, including its five-year deal with the Australia Football League and Formula 1, might also be affected.
