- Crypto companies are entering football sponsorship, spending £130 million to replace gambling revenue.
- Stricter gambling regulations are pushing Premier League clubs to seek new financial sources by 2026.
- Football clubs are cautious about crypto risks, demanding upfront payments and exit clauses.
- Some clubs are still signing short-term gambling deals, but crypto could take over soon.
The English Premier League, the world’s richest football league, is seeing an influx of cash from the crypto industry. According to Bloomberg, crypto companies have already spent around £130 million this season on sponsorship deals as they aim to fill the gap left by declining betting industry revenue. Tougher regulations on gambling ads have forced clubs to look elsewhere for financial support.
Crypto Expanding Footprint in Football
According to Emily Nicolle, Bloomberg’s crypto and fintech reporter, “If you think about what the landscape of crypto looked like two years ago, it was a big boom.” Back then, crypto companies were heavily investing in high-profile deals, like sponsoring entire stadiums. She mentions examples such as the “Crypto Token Center in L.A., which is now the Staples Center.” So, this period, however, was also marred by collapses and scandals, notably involving major players like “RTX and Tarar.”
Now, companies are more cautious. Nicolle points out that crypto firms have learned lessons from the “excesses of 2021 and 2022.” So, instead of going for expensive deals like stadium naming rights, they’re targeting football clubs. “Football clubs and leagues are seeking out these deals,” she says, as they prepare for stricter regulations that will ban gambling sponsors on key advertising spots by mid-2026.
Gambling Regulations and Football Crypto Future
The shift in sponsorship interest is largely due to the upcoming gambling regulations in the Premier League. Nicolle explains, “There was a whistle-to-whistle ban implemented a few years ago, which means you can’t have gambling ads shown while the game is live.” Furthermore, clubs are facing a “ban on gambling sponsors from mid-2026,” meaning those expensive front-of-shirt sponsorship spots, a primary source of revenue for many clubs, will be off-limits for betting companies.
So, this has left clubs scrambling for new sources of revenue, and crypto is stepping in. Nicolle notes that crypto firms are “dipping their toes in the water,” testing the market to see how these deals perform before committing larger sums. By 2026, crypto companies may be ready to “spend the big bucks” on these valuable advertising spaces.
Clubs Approach to Risk
One of the primary concerns with crypto sponsorship is the inherent risk associated with digital currencies. Nicolle acknowledges that “everybody thinks crypto is a really risky business” and that clubs will need to perform “extra due diligence.” Given the numerous bankruptcies and scandals that have rocked the crypto industry, football clubs are being cautious.
However, as Nicolle points out, football clubs are no strangers to these kinds of risks. “Gambling sponsors have been causing these issues as well over the years,” she says. So, to protect themselves, clubs are including “boilerplate clauses” in contracts that allow them to cut ties if a crypto company damages their reputation. Additionally, clubs are asking for payments upfront, reducing the risk of not getting paid if a crypto firm collapses mid-contract.
Transitioning From Gambling to Crypto Sponsorship
Despite the looming ban on gambling sponsors, not every club is ready to part ways with betting companies just yet. Nicolle mentions that “some clubs in the Premier League are still signing them,” including for front-of-shirt spots that will soon be banned. These deals, however, would be a last hurrah for betting sponsors as the 2026 deadline approaches.
Meanwhile, crypto companies are starting small. Nicolle explains that crypto firms are adopting a cautious “we’ll spend a little bit here now” approach to test the waters. If these smaller deals go well, Nicolle believes that clubs might eventually see crypto companies progress “from those smaller spots on the shirt sleeve to that big prime center spot.”
Conclusion
As Premier League clubs face increasing gambling regulations, crypto companies are coming in as potential sponsors. Although there are risks involved, clubs are taking precautions by demanding upfront payments and including exit clauses in their contracts.
With gambling sponsorships on the way out by 2026, crypto companies could step in to take over valuable advertising spaces, positioning digital currency as a major player in football sponsorship shortly.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
