There are a lot of talks around sports and cryptocurrency getting closer. And according to Ben Armstrong, the billion-dollar convergence of sports and cryptocurrency is a tremendous win for everyone. Is it really so? Here are some thoughts on how to make sense of this trend that experts from buidlbee have shared with us.
Cryptocurrency Market Is Expanding Its Borders
For good reason, cryptocurrency is the fastest-growing sponsorship category in sports. The crypto sector brings value, reputation, and strong public relations to leagues, teams, and sportsmen all around the world. It’s difficult to ignore Crypto.com’s $700 million naming rights deal with what was formerly known as Staples Center or its $175 million sponsorship agreement with UFC. The idea is that sports and cryptocurrency are at the crossroads of a cultural transformation, and we’re witnessing this full-court blitz unfold right before our eyes. Here’s why sports and cryptocurrency are ideal partners.
It’s Profitable and Perspective
The quantity of multimillion-dollar agreements being signed right now would have Jerry Maguire screaming in delight. Aside from that, the figures are just astonishing. Sports sponsorships are reported to have cost up to $1.45 billion between Crypto.com and FTX alone. That’s only scraping the surface. In addition to those huge hitters, other wealthy crypto firms are capitalizing on sports’ vast reach to raise awareness in a relatively nascent market.
Leagues and franchises are looking to connect with younger audiences by using cryptocurrency as a strategic way to reach Gen Z’ers and millennials. At the same time, athletes are capitalizing on this new era of influencer culture by signing large sponsorship agreements and growing their personal brands in new and creative ways.
It Pays Back Well
Through enormous partnerships, crypto companies are meeting people everywhere they go – whether it’s their logo on a shirt, their brand name on a building, or during TV timeouts when we get to see Tom Brady and Giselle orange-pill their friends. In short, they are seeking to humanize what might appear to the typical individual just getting started in crypto as a sophisticated and daunting technology. Sports and competition have always promoted social relationships and helped people make sense of life’s complexity, and crypto is no exception.
When a well-known athlete promotes a product, whether it’s Gatorade, Wheaties, or a pair of shoes, you’re more likely to try that brand. Alternatively, if you currently use that product, your decision seems justified, increasing brand loyalty. After all, you’re ahead of the game! Celebrity endorsement may enhance stock value and sales by around 4%. This will be no different as crypto moves closer to widespread usage.
It Allows for Effective Branding
Sure, the biggest crypto endorsement agreements go to big-name sportsmen like Lionel Messi, Tom Brady, Steph Curry, and others. But the most powerful aspect of crypto is that it allows athletes of all levels to creatively brand themselves while creating extra cash streams. Have you ever heard of Tyger Campbell, for example? He’s the UCLA men’s basketball point guard who announced the development of his cryptocurrency, $TYGER. Unlike other stock-like cryptos, $TYGER is a community token, which connects him to his and fan community by offering $TYGER holders limited merchandise giveaways, opportunities to compete with him in chess and Super Smash Bros., as well as exclusive access connecting with him in unique, never-before-seen ways throughout his career.
Imagine owning community tokens from a collegiate Michael Jordan and receiving exclusive access to Air Jordans limited edition (along with the NFT), as well as playing metaverse poker against him. Another example is Kayvon Thibodeaux, Oregon collegiate football player and a probable first-round choice in the 2022 NFL draft. Fans who acquire Thibodeaux’s $JREAM token will enjoy exclusive access to a Discord channel as well as products from a marketplace that resells player-worn collegiate clothes.
Teeing up the Future for a Win-Win Trend
The list goes on and on because crypto enables professional sportsmen at all levels and in every sport to use tokens to reward fans, get them more engaged, and develop stronger communities. The fusion of sports and cryptocurrency will only get closer and more innovative in the next months and years. The technology, the money, the momentum for mainstream crypto acceptance, and the growth of athlete empowerment are all aligning for what might be a very spectacular next few years for crypto, beginning with a bang in 2022. Negotiations are deemed to be successful when all parties involved are dissatisfied. That may have been accurate until recently.