Citing legal issues it’s facing in some European countries, Singapore-headquartered CryptoCom has backed out of a $495-million sponsorship deal with Union of European Football Association (UEFA) Champions League.
Scrapping Deals: What are the regulatory issues?
The cryptocurrency company, which offers trading, DeFi and wallet services among other things, was to become the sponsor for the next five season, until 2027. Media reports claimed that UEFA ended its partnership with Gazprom after Russia invaded Ukraine in March.
According to media reports, CryptoCom expects legal and regulatory issues in trading and operations in the UK and France. The bear market has seen $2 trillion of market value drop in the past six months, and CryptoCom’s decision to pull out at the last moment seems to have been forced.
Some analysts claim that crypto companies have already spent $2 billion on sports sponsorship deals. It is difficult to see how they can continue with such large investments in a market downturn.
CryptoCom’s Global Expansion Drive
CryptoCom’s desire to invest in sports has not been diminished by the market downturn. It announced in August a nine-figure investment plan for the renovation of CryptoCom Arena.
It received approval last month from the Financial Conduct Authority in the United Kingdom for operation as a digital asset company. South Korean authorities granted CryptoCom a license and registration to allow it to operate as a Virtual Asset Service Provider.
It also received licenses to operate (in-principle), in Singapore, Singapore, and Italy (provisional) within the last two month.
CryptoCcom purchased the naming rights to Staples Center Los Angeles for $2000 million in November 2021. It is now called CryptoCom Arena. The company signed a multiyear sponsorship agreement with Aston Martin Cognizant Formula One Team in March. In June, it signed a five year sponsorship deal with Formula 1. According to reports, the platform paid $100 million for a TV spot featuring Matt Damon, a Hollywood actor.
CryptoCom Announces Rejection of Sponsorship Deal With UEFA’s Champions League originally appeared on CryptoPotato.
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