One of the most famous football clubs in the world is agreeing on the deal of the century. No, we are not talking about changing team members or partnerships with Nike (those are already more common than we think), we are talking about the partnership between the one and only manchester city football club and the crypto expert OKX, while the terms are still not officially disclosed, the estimated gain from the deal will be astronomical! In this video, we will be talking about the details of the deal and how beneficial it will be for both the team and OKX. But first, make sure to leave a like and subscribe to our channel to get notified of our latest content.
Manchester City has partnered with OKX, a cryptocurrency exchange based in Malta. The multi-year deal marks OKX’s first partnership in sports and will span Manchester City men’s and women’s teams, as well as the club’s esports operations. The Malta-based company marked its very first partnership with a football team and will sponsor Manchester City’s both men, women, and sports teams.
Although the deal was already made, the terms were not disclosed, a source tells Forbes that the deal with the world’s sixth-most-valuable soccer team cost at least $4 billion, and is said to be in the multimillion-dollar range for every year in the contract. It’s the latest agreement in the sports and finance fields in the history of crypto endorsements.
In November last year, the Premier League started an investigation into ongoing cryptocurrency partnerships and sponsorships with its clubs. It’s concerned these may encourage fans to take financial risks without full awareness of potential consequences. It also mentioned a lack of regulation in the industry and greater opportunities for fraud and misconduct. The UK’s Advertising Standards Authority has banned multiple cryptocurrency exchange advertisements (not OKX) and also a fan token promotion by another club, Arsenal.
However, it’s not the first or the last agreement that has poured money into sports, as long as the industry seeks to establish a presence with mainstream audiences. In February, crosstown rival Manchester United agreed to a sponsorship with blockchain company Tezos worth $27 million, according to The Athletic. Last year, FTX crypto agreed to a 19-year, $135 million deal for the naming rights to the Miami Heat’s arena while Crypto.com spent more than $700 million to replace the Staples Center moniker for the next 20 years, in addition to an eight-figure arrangement for the Philadelphia 76ers’ jersey patch. Both have also collected a laundry list of top athlete endorsers, with retired NFL quarterback Tom Brady, Golden State Warriors star point guard Steph Curry, and Los Angeles Angels two-way phenom Shohei Ohtani under the FTX flag and Crypto.com sponsoring LeBron James. A recent Nielsen report anticipates crypto spending in sports will reach $5 billion by 2026.
Starting with a little background about the company :
OKX is the second-largest crypto exchange by spot-trading transaction volume, with more than $20 billion changing hands in the past 24 hours, according to CoinGecko.com. It was founded in 2017 by Star Xu, the embattled crypto entrepreneur who publicly declared his innocence in 2020 after a reported investigation into an equity merger related to his blockchain company OK Group. Called OKEx until this year, OKX is based in the Republic of Seychelles and operates in more than 100 countries. In January, the company said total trading on its platform grew 700% during 2021.
Since The deal is OKX’s first into soccer sponsorship and will see the exchange’s branding featured at the Etihad Stadium, Manchester City’s home, it will be one of its biggest steps into the world of sports partnership. The two parties will reportedly be exploring additional projects together, as OKX announced on Friday. The terms of the agreement are still a mystery though, and Manchester City didn’t respond to a request for comment, the same thing for OKX that declined to comment. The Sponsorship deals between sports teams or events and crypto firms have become more frequent in recent months. In February, local rival Manchester United signed a sponsorship agreement with Tezos reported to be valued at £20 million ($27 million) a year.
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