Golden State Warriors is set to pause all FTX-related promotions, ending its $10 million sponsorship deal with the exchange in December 2021.
The news comes after several sports franchises cut ties with FTX over the past week, following a complex chain of events that led to a multi-billion dollar cryptocurrency exchange. Archive For Chapter 11 bankruptcy on Friday.
The NBA contender Miami Heat also cut ties with the failed exchange over the weekend, ending their 19-year, $135 million sponsorship deal after renaming their home stadium the FTX Arena in June 2021.
But it’s not just the basketball world that is distancing itself from the FTX brand.
This was announced by Mercedes It will remove FTX logos instantly of their Formula 1 cars on Friday. Meanwhile, Brazilian esports organization FURIA, which previously signed a sponsorship deal with FTX, began removing all related brands earlier this week.
Not every FTX money recipient has picked up a bar yet; For example, North American esports organization Team SoloMid (TSM) has not rebranded or made an official statement.
The team is still officially known as “TSM FTX” after the $210 million 10-year naming rights deal announced on June 4, 2021.
Cryptography, sports and marketing
In recent years, the cryptocurrency world has poured huge amounts of money into professional sports, and while the level of FTX spending seemed high, it was by no means unusual.
according to August report from BloombergCrypto companies have spent $2.4 billion on sports marketing in the past 18 months.
Crypto.com has emerged as one of the biggest advertising spenders in recent years, at least in mainstream sports.
In July 2021, the crypto platform signed several sponsorships with the UFC, becoming the largest sponsor of MMA in a deal valued at $175 million over 10 years, to me CNBC.
Crypto.com has also secured a $100 million sponsorship deal with the Formula 1 Motorsports League and is set to sponsor the 2022 FIFA World Cup in Qatar.
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