Sports companies have high outreach and are usually privately owned.
Sports is one of the most globalized industries in the world. A big chunk of the world’s premier sports bodies is privately owned and managed.
A significant portion of the revenue generated by the sports industry comes from advertisements and endorsements.
Since many sports bodies are registered as private entities, it is easy for them to partner with any crypto company.
A national federation or government-owned sports institution will be reluctant to partner with crypto projects due to their unregulated nature.
For instance, crypto exchange FTX partnered with International Cricket Council (ICC) because the latter is a private organization. It does not fall under the ambit of a governmental institution. It is registered as ICC Business Corporation FZ LLC in Dubai.
That’s why Indian crypto exchanges were able to bag the advertisement slots during the 2021 ICC Men’s T20 World Cup. But later, the Board of Control for Cricket in India (BCCI) barred IPL teams from dealing or associating with any crypto company due to condemnation by regulators.
Recently, Floki Inu partnered with Kerala Blasters Football Club, a football team that plays in the Indian Super League (ISL). Both the team and the league are privately owned.
Crypto.com has struck partnerships with various sports bodies around the globe ranging from Formula1 to UFC. All these bodies and teams are private.
Besides being easy to partner with, the outreach of sports bodies is also high. Sporting events generate one of the highest viewership in the world.
Given the coronavirus pandemic, sports companies have a big incentive to rake in whatever revenue they can. They have already lost the portion that comes from tickets. Advertisements and endorsements have now become even more important.
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