The crypto industry has helped the sports sectors immensely following the financial losses due to the Covid-19 pandemic. All sports clubs and organizations looked towards crypto deals for an additional source of revenue, and it had been a mutually beneficial deal for the most part. However, not all sporting clubs are willing to embark on cryptocurrency partnerships despite the associated risks. It came as a shock to many when leading soccer clubs FC Barcelona and Manchester City decided to terminate their partnerships with cryptocurrency/NFT firms.
In the case of FC Barcelona, the termination was due to criminal associations of the NFT marketplace Ownix. The arrest of Moshe Hogeg led Barcelona to this decision since Hogeg was closely associated with Ownix. Similarly, Manchester City canceled their partnership with decentralized exchange 3Key, the reasons for which were not announced. However, it is likely that the termination came due to regulatory pressures and criminal track records of the firm.
These canceled deals do not seem to put off NFT enthusiasts, who believe that the sector will reach unscaled heights. Morgan Stanley predicts that the NFT sector will be a twelve-digit market by 2030, and now is the time to invest in them. Many NFT marketplaces also have successful partnerships with sporting teams. The key for firms is to ensure that they do not engage in shady transactions. These sporting clubs have fanbases of millions, and any face loss would have a huge repercussion on the team, the club, and its many employees.
