Bloomberg quotes Daniel McDonagh on crypto sponsorships in Premier League football
Bloomberg reports that, according to sports sponsorship agency SportQuake, cryptocurrency firms have spent a record amount of almost £130 million ($170 million) on deals for the Premier League 2024/25 season.
The uptick reflects a market in recovery after significant headwinds for digital-asset companies in 2022 and a widespread plunge in token values. Bloomberg suggests that in the wake of that negative publicity, tie-ups with football are an attempt to rebuild brands and legitimacy, particularly among retail customers discouraged by high-profile scandals and "boom-and-bust" stories.
Following an interview with Bloomberg, Daniel McDonagh, Associate in our Dispute Resolution team, explains that "there's been a real shift toward limiting visible gambling sponsorship". He comments:
There's been an incentive in general for football teams to start seeking out new categories of sponsorship, because obviously that was quite a lucrative stream - the biggest single industry putting money into the sport.
Daniel was interviewed alongside Nick White, Partner in our Dispute Resolution team, and Bloomberg goes on to quote our Firm more generally:
The volatility and scandal that has plagued crypto is also affecting the terms of football partnerships. While sponsors from more longstanding or reputable sectors may pay for deals over time, it’s common for newer entrants — particularly those in crypto — to be required to shell out up front, according to lawyers at Charles Russell Speechlys.
Read the full article in Bloomberg here (subscription required).
