Crypto scoring big with European football
The Beautiful Game. Soccer, or football, as those living in the “old world” tend to call it. It’s a sport that has many names, a sport that commands a support base of some 4 billion people.
The power of football is undeniable. Its best players, the Ronaldos and the Messis, are some of the most recognizable people on the planet. Its biggest teams have millions of fans scattered across the world and broadcasters reach more than half of the people on the planet. The European football industry alone turned over 25 billion euros in revenue in 2020, according to Deloitte, an indicator of the value in the biggest theater for the sport.
The popularity of football is due in large part to its simplicity as a game, and this has inevitably led to the biggest leagues and competitions attracting massive audiences and generating plenty of revenue for all involved. Whether it’s through team sponsorships or marketing on broadcasts and advertising space, the sheer size of its viewership makes football a prime way for brands and businesses of all kinds to reach a lot of consumers.
While the cryptocurrency and blockchain space is still in its infancy, it’s a burgeoning industry that is quickly redefining finance and remittance, individual sovereignty of wealth, and a host of other use cases. A number of different firms and organizations have taken the world of crypto into the football arena in different ways, but they’ve quickly made moves to be associated with some of the biggest players, teams and competitions as a result.
Here’s exactly how cryptocurrencies have been introduced to global football audiences and blockchain technology applied to some of the industry’s most popular applications.
Tapping into a huge audience
Football is the most-watched sport in the world, captivating the minds of billions throughout its history. This audience is made up of fans of all types, from fanatics to casual viewers and impartials.
The love of the game has fostered an environment that goes far beyond what is happening on the television screens, from the physical world of merchandise and memorabilia to the digital world of predictions games, fantasy sports and betting. Both areas are prime candidates that can be improved by the different use cases blockchain technology and cryptocurrencies offer.
One such company that hopes to disrupt the game is Skrill, a global payments firm that has had a long relationship with European football. As Rupinder Singh, senior vice president of consumer and digital wallets divisions at Skrill, tells Magazine, the company’s history of football sponsorship goes as far back as 2013 in the United Kingdom’s Football Conference league, while its parent company Paysafe’s other digital wallet, Neteller, became a sponsor of Premier League outfit Crystal Palace at the same time.
Part of Skrill’s payments bouquet is a cryptocurrency wallet that allows users to store and manage a selection of tokens. The company’s footprint in European football has grown significantly since its humble beginnings sponsoring third-tier football eight years ago.
Who would have bet few years ago that there would tokens, digital assets on the front of jerseys? This is an investment we made to make a strong statement about digital assets globally. pic.twitter.com/WJ05PY2mIb
— Alexandre Dreyfus (@alex_dreyfus) September 26, 2021
In March 2021, Skrill signed as an official partner of U.K. Premier League team Leeds United, its latest big-name sponsorship deal in recent years. It had already partnered with Italian Serie A giants A.C. Milan last year. It also has a foothold in the United States as a front-of-jersey sponsor of Los Angeles-based club LA 10 FC, which plays in the growing United Premier Soccer League.
From the outside looking in, one might wonder how cryptocurrency and blockchain firms can synergize with the football industry. History provides an answer, as marketing through advertising channels in the football industry has been tried and tested by various brands for decades.
Singh believes that “the football audience is one of the most digitally adept audiences in the way they consume content, interact with their clubs or each other within online communities and entertain themselves through sports gambling or fantasy sports.” According to him, the jump to cryptocurrencies is a natural extension for such a group of potential customers. Singh also thinks many more firms from the crypto space could benefit from becoming involved in the football ecosystem:
“Football will likely always be of interest to crypto companies as long as they continue to see the behaviors of their customers mirror those of football fans, plus the obvious reach and impact that the sport has in every market across the world.”
Crypto.com is another cryptocurrency firm that is popping up on advertising boards in arenas and stadiums across the world. A partnership with the Italian Serie A has seen Crypto.com’s branding feature on pitchside advertising. As Crypto.com chief marketing officer Steven Kalifowitz tells Cointelegraph, a decision to begin advertising in the football space was made at the end of 2020, and there’s been no delay in making this happen.
French football giant Paris Saint-Germain F.C. also welcomed the company as its “Official Cryptocurrency Platform Partner” in 2021. Part of the deal would see PSG release exclusive nonfungible tokens and pay a “significant” portion of the sponsorship fee in its native Crypto.com Coin.
Borussia Dortmund, one of Germany’s premier football clubs, has also partnered with a cryptocurrency firm. Growing crypto derivatives exchange Bybit secured a sponsorship deal that was unveiled late in 2020, which was touted to help grow Dortmund’s brand in Asia.
Cryptocurrency exchange BitMEX has its logo emblazoned on the left sleeve of A.C. Milan’s men’s, women’s and esports team jerseys after it signed a deal to become the Italian club’s official cryptocurrency trading partner.
Bringing digital scarcity to big brands
No other space has taken to the NFT craze like sports have. You need not look further than the NBA Top Shot ecosystem to see the perfect synergy among blockchain-based NFTs, tokens and sports fans.
Memorabilia, collectibles, prized signatures, and player and team cards have been popular for decades, with fanatics taking great joy out of showcasing their prized, rare possessions. The advent of blockchain technology and cryptocurrencies has facilitated the digital evolution of nonfungibility, where sports stars, teams and brands can create one-of-a-kind digital collectibles that are verifiable. They’ve proved to be massively popular — and this has spilled into the football space in a big way.
In 2018, Nicolas Julia and his co-founder Adrien Montfort launched Sorare, an Ethereum-powered marketplace that facilitates the minting and trading of various NFTs and tokens, and aimed their sights at the football space. Julia tells Magazine that more can be done with blockchain than just collecting cards:
“As two huge football fans, we decided to create scarce digital cards mixed with one of the most coveted intellectual property in the world, football players. Now we had scarce and branded digital collectibles. But since these collectibles are digital, we can give them utility. We’ve made this new class of collectibles usable in a compelling fantasy game.”
The platform is hugely popular among football fans in Europe and around the globe. It has facilitated over $170 million of trade volume since January 2021, and Julia expects to see this nearly double by the end of the year. It sounds ambitious, but it’s understandable when looking at the caliber of clubs and players associated with the platform.
Barcelona and Spain stalwart Gerard Piqué is a prime example of a player who has taken to cryptocurrencies and blockchain technology. The footballer founded media and entertainment firm Kosmos, which is exploring blockchain solutions to leverage teams’ and brands’ commercial potential. He’s also been pivotal in Sorare’s growth according to Julia, “Gerard Piqué was one of the first to realize the huge potential of our new game, thanks to NFT. Becoming an investor, he helped us to improve the gameplay and open doors in the football ecosystem.”
We’re excited to announce an exclusive #NFT partnership with 50 legends of the beautiful game