JVTech's 'Crypto Hangover': These Football Teams Are Also Facing Bitcoin's Fall
Published on 03/16/2023 at 18:15
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The decline in the cryptocurrency market is causing problems among investors, but it has also an impact on the world of sports, where football teams have recently paid the price. Unpaid and broken promises, welcome to what is commonly known as: the "hangover of cryptos".
The two industries appear to be closer than at first glance. During the last spike in the value of the cryptocurrency market, some established companies set out to grab a new audience. And what better is football to promote cryptocurrency on a massive scale?
From the year 2021, several Spanish football league teams had teamed up with businesses and start-ups in the crypto industry.
Many businesses have been able to engrave their names on professional football teams due to these large-scale partnerships.
Only two years after forming an agreement with these new types of sponsors, some clubs express their displeasure...
Bitcoin plummeted and dragged the rest of the cryptocurrency market down with it, equating to FTX and its partnerships.
Although they aren't bankrupt, they are still with sports organizations, but they fail to honor their sponsorship commitments — to the detriment of the clubs.
In any event, the Xataka media reports this, evoking a "crypto hangover." Many clubs have filed complaints with new sponsors for payment irregularities.
Club Celta De Vigo, who is currently 11th in the table, has reported a conflict with his Turkish partner, Bitci.
The club reported that the cryptocurrency buying and selling platform had failed to make any payments since the start of this partnership for the 2021/2022 season in a tweet posted on March 13.
For this reason, the club has indicated that it has taken legal action in order to obtain the payment initially promised as part of this sponsorship.
However, the club is not the only one to suffer this disappointment. Bitci's platform was linked with other Spanish premier league clubs such as Valencia and Barcelona's Espanyol.
Bitci claims to be able to pay, although it requires longer notice due to Turkish financial regulations.
This problem also affects other sponsors, such as the Iqoniq company. The Spanish club La Real Sociedad, which is a token platform dedicated to football enthusiasts, is owes mainly $875,000 in unpaid bills.
