The exchange 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 “official partner of exchange of cryptocurrencies” of the club and, in addition to sponsoring City’s trophy tour, the OKX name will now appear on next season’s training kit for both the men’s and women’s teams. City chief executive Roel de Vries said:
“We have worked together to ‘enhance the fan experience’ through a series of exciting, high-profile pre-match content activations during the culmination of the 2021/22 season and look forward to continuing to build on these opportunities in the coming year.”
While the finances of the deal remain undisclosed, a source told him Recently told Forbes that the deal closed for more than $20 million for the season. Haider Rafique, OKX Global Marketing Director, said:
“Our partnership with Man City has provided a great platform through which we have the opportunity to educate the curious about cryptocurrency and offer those already involved the training they need to participate responsibly.”
Deals eliminated due to market crisis
Sports sponsorships in the 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 World Cup of FIFA scheduled for the end of the year. In April, the Dallas Cowboys reached an agreement with Blockchain.com to become the first team in the National Football League (NFL) sponsored by a cryptocurrency company.
But, as the cryptocurrency slowdown wipes billions off the global market capitalization, some companies they are reconsidering their associations.
A report recent of the New York Post revealed that FTX pulled out of a deal to sponsor the Los Angeles Angels, citing market turmoil as the reason for the decision. The report also noted that another association between NBA Washington Wizards and a cryptocurrency company also failed for the same reason.
Columbia University sports management professor Joe Favorito told the media he would be “surprised” if new deals are signed in the crypto winter, adding: “The market has definitely slowed down.”
Ad spending and job cuts
The professor explained: “The ancillary expenses have definitely been reduced, whether it’s major announcements and things like the NBA Finals. The money that has not been spent will already be reduced, just as we saw during the dotcom bubble.”
“The money that has not been spent will already be reduced, just as we saw during the dotcom bubble,” added Favorito.
OKX keep spending
OKX said last month that it planned to continue its expansion, despite the market downturn.
“Our company has overcome many market cycles. We have learned that market downturns are an absolute opportunity for us to double down on recruiting, developing and expanding our services,” a spokesperson said.
The platforms: Binance, Kraken and FTXalso announced hiring plans despite broader market weakness.
Binance had even said it would hire 2,000 new employees, while hinting that it would keep spending on sports sponsorship low in return.
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OKX Extends Partnership With Manchester City Despite Market Downturn – BeInCrypto