Cryptocurrencies have crashed in value since late last year, and the fallout is impacting sports sponsorships.
Two high-profile deals between teams and crypto exchanges have reportedly fallen apart due to the value drop, according to the New York Post.
The prices of bitcoin and ethereum, the two most valuable cryptocurrencies, have respectively dropped by 69.1% and 76.7% since their November peaks.
The pullback comes after a period when crypto companies poured billions into sports sponsorships.
FTX and Crypto.com both inked high-profile arena naming rights deals, with FTX securing the Miami Heat’s home in March 2021 in a 19-year, $135 million deal, and Crypto.com landing the arena of the Los Angeles Lakers, Clippers, Kings, and Sparks, in a reported 20-year, $700 million deal in November.
Crypto.com would reportedly have to pay $385 million to pull out of the naming rights deal.
In the 2021-22 NBA season, crypto companies jumped to the second-biggest spenders — with $100 million to $150 million in sponsorship deals — after placing 43rd the previous season.
Formula 1 extended its contract with Melbourne by 10 years, through 2035. It also inked media rights deals in Brazil.
Entertainment experiences company Legends has acquired a minority stake in the American Ultimate Disc League.
Formula 1 is close to bringing a Grand Prix race to South Africa. Other F1 mainstays may be bumped from the calendar next year.
Entain has agreed to purchase online sports betting operator BetEnt BV in a deal that could reach a total value of $885 million.
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