According to finance.yahoo.com, the fall in the crypto market has been weighing down the sports industry as of late. Crypto was once considered a savior of sorts for the sports world when it came to sponsors, however, recently some sponsorships appear unstable as many companies are filing for bankruptcy. According to IEG Managing Director Peter Laatz, “This has been an arms race, It might’ve been the fastest arms race we’ve seen in terms of 40 companies going down to three.” The main cause for this has been the declining Crypto prices throughout 2022 which have seen a decline of almost 60 percent year to date. Another factor are the bankrupt Crypto companies such as Voyager Digital, which had partnerships with the National Women’s Soccer League (NWSL) and the NBA’s Dallas Mavericks, they filed for bankruptcy last week. The Crypto market invested more than $1.6 billion on NBA partnerships last year and has now predominately halted further sports spending. Even Crypto giants such as Crypto.com have started laying people off as their CEO is quoted in saying, “how to best optimize our resources to position ourselves as the strongest builders during the down cycle.” As Crypto stumbles, sports partnerships will have to star heading into a different direction as far as sponsorships are concerned.
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