Sport companies such as the NFL, Formula 1, eSports, and the MLB benefit from cryptocurrency projects such as Bitcoin, Dogecoin, and Shiba Inu coins sponsoring the sports. Crypto deals with sports teams and increases engagement by creating a large community through cryptocurrency.

“Crypto deals with sports teams, and leagues grew over 100% in 2021 and are expected to reach $5 billion by 2026, according to sports analytics firm, Nielsen Sports,” stated Rufus Kamau, a senior contributor to Forbes. 

In February, the cryptocurrency Tezos held a multi-year sponsorship deal with Manchester United Football Club (FC). The deal between the two companies for just one year could profit up to $27 million for the Manchester United F.C. As for the gain of Tezos, the sports team must wear a warm-up jersey with their branding before marches. Many other sports companies were also sponsored by Tezos such as Formula 1 and IndyCar. 

Also in February the Super Bowl LVI, was sponsored by FTX Trading, a website built to buy and sell crypto. Crypto.com confirms a well over estimate of $6.5 million for a 30 second ad spot. 

This coinbase, an online platform to sell or buy cryptocurrency,  also made another $700 million Crypto.com deal with the Los Angeles Lakers’ arena to rename it to Crypto.com Area. The coinbase also signed a $175 million deal with Ultimate Fighting Championship (UFC) for their brand to be worn by UFC athletes. The investment of many sports industries led to large profits. 

As an effect of sponsorships from cryptocurrencies, the production and token value of Bitcoin, Dogecoin, and Shiba Inu coins exhibited rapid growth. The back and forth response to the sports industry and cryptocurrency both provide major economic benefits.

As deals with cryptocurrencies and sports industries increased, strategies for a greater profit were made, such as the effectiveness of the development of fan tokens. Fan tokens are cryptocurrencies that associate with a particular team or league and may be exchanged for tickets, voting on certain events, discounts on merchants, and engagement of the sports fan community. Industries such as Atlético Madrid, FC Barcelona, Paris Saint-Germain FC, AC Milan, Juventus, and AS Roma have already developed fan tokens. 

The partnership between cryptocurrencies and various sports industries provide benefits for one another. As time presses onwards, constant deals between the two industries will lead to a greater effectiveness of the profit made between these agreements.

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