Crypto platform OKX has extended its partnership with Manchester City by becoming the club’s new official training kit sponsor.
Earlier this year, the exchange signed a multi-million dollar deal to become the club’s “official cryptocurrency exchange partner” and in addition to sponsoring City’s trophy tour, OKX’s name will now appear on next season’s training kit for both the men’s and the women’s teams.
Roel de Vries, City’s CEO said: “We have worked together to ‘supercharge the fan experience’ through a number of exciting content activations ahead of high profile fixtures during the culmination of the 2021/22 season and we look forward to continuing to develop these opportunities over the coming year.”
While the financials of the deal remain undisclosed, a source recently told Forbes that the deal has been sealed for more than $20 million for the season.
Haider Rafique, Global Chief Marketing Officer, OKX, said: “Our partnership with Man City has provided a great platform through which we have the opportunity to educate those curious about crypto and offer those already involved the training they need to participate responsibly.”
Deals axed owing to the market meltdown
Sports sponsorships in the crypto industry have become part of the changing landscape and are estimated to potentially reach $5 billion by 2026, according to Nielsen.
Crypto.com became the exclusive crypto sponsor of the FIFA World Cup scheduled to take place at the end of the year. In April, the Dallas Cowboys struck a deal with Blockchain.com to become the first American National Football League (NFL) team to be sponsored by a cryptocurrency firm.
But, as the crypto slowdown wipes billions from the global market capitalization, some firms are rethinking their partnerships.
A recent New York Post report revealed that FTX withdrew from a deal to sponsor the Los Angeles Angels, citing market turmoil as the reason for the decision. The report also noted that another partnership between the NBA’s Washington Wizards and a crypto company also fell through for the same reason.
Columbia University sports management professor Joe Favorito told the media outlets that he would be “shocked” if new deals are signed in the crypto winter, adding: “The market has definitely slowed.”
Ad spending and jobs cuts
The professor explained: “The ancillary spending has definitely been cut back, whether that’s major ads and things like the NBA Finals. What money hasn’t been spent already you’re going to see curtailed – just like we saw during the dot-com bubble.”
“What money hasn’t been spent already you’re going to see curtailed – just like we saw during the dot-com bubble,” Favorito added.
But OKX to keep on spending
OKX said last month that it planned to continue its expansion, despite the market downturn.
“Our company has weathered many market cycles. We’ve learned that market downturns are an absolute opportunity for us to double down on hiring, building, and scaling our services,” a spokesman said.
Crypto platforms including Binance, Kraken, and FTX also announced hiring plans despite the broader market weakness.
Binance had even said that it will hire 2,000 new staff, while hinting that it kept its sports sponsorship spending low as a tradeoff.
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