Sports teams and businesses may shy away from long-term deals with crypto firms to minimise their risks after troubled crypto exchange FTX filed for US bankruptcy protection last week, industry experts told Reuters on Monday.
National Basketball Association side Miami Heat also dropped the FTX name from their arena, ending a 19-year deal they signed with them last year for US$135 million. "I think crypto will be at the bottom of prospect lists for quite some time. Until that industry stabilises and has better oversight and controls - if it happens - then maybe it might be a viable partner."The ever-evolving nature of sports sponsorship means other emerging categories could come to the fore, said Larry Mann, partner at sports marketing and media agency rEvolution.
Singapore-based crypto exchange Crypto.com said on Monday it had moved about US$1 billion to FTX over the course of a year, but most of it was recovered and exposure at the time of FTX's collapse was less than US$10 million.