Tottenham Hotspur's Partnership with Kraken: A Strategic Move Amidst Industry Shifts
Staff Writer • 2024-08-02
In an era where football sponsorships are under increased scrutiny, Tottenham Hotspur's recent partnership with Kraken, a leading cryptocurrency exchange, has sparked significant discussion within the sports and finance communities. While some critics are quick to equate this deal with betting sponsorships, finance expert Stefan Borson argues that such comparisons are misguided. Borson, in an exclusive interview with Football Insider, emphasized that the landscape of football sponsorships is rapidly evolving, with crypto brands poised to play a more prominent role as traditional betting sponsorships phase out. A New Era of Sponsorship On July 16th, Tottenham Hotspur officially announced its partnership with Kraken, designating the company as the club's Official Crypto and Web3 partner. As part of this deal, Kraken's logo will be prominently displayed on the club's shirt sleeves for the 2024-25 season. This move is not an isolated incident but rather a continuation of a growing trend within the Premier League, where crypto-related companies are increasingly becoming key sponsors. Borson highlighted that many top-tier clubs, including Manchester City and Chelsea, have already embraced crypto sponsors, signaling a broader acceptance of digital assets within mainstream sports. "Loads of clubs have got crypto-related sleeve sponsors," Borson noted. "City and Chelsea have got one, so that part of it is not unusual. Whatever people think about crypto, the reality is that it’s largely mainstream now, certainly in terms of Bitcoin." Crypto vs. Betting: A Different Category Despite the criticism, Borson contends that it is essential to differentiate between crypto sponsorships and betting sponsorships. He suggests that crypto platforms like Kraken, OKX, and BingX, which sponsor clubs like Manchester City and Chelsea, represent a different category of partnership. "I don’t put it in the same category as betting particularly or some of the socio stuff that was quite prevalent in these clubs," Borson stated. "Kraken is more of a legitimate platform for trading crypto as I understand it." Martin Calladine, a finance expert, raised concerns on social media, urging potential partners to research Kraken's history with the U.S. Securities and Exchange Commission (SEC) before committing to any deals. Calladine's warning reflects the ongoing debate about the regulatory challenges faced by crypto companies, but Borson remains confident in the legitimacy of these platforms within the sponsorship landscape. Filling the Void Left by Betting Sponsorships With the Premier League set to ban front-of-shirt deals with gambling firms starting from the 2026-27 season, clubs are likely to seek alternative revenue streams. Borson predicts that top crypto brands will increasingly step in to fill the sponsorship void left by betting companies. "I think for the top crypto brands, we can expect to see them coming into football more and more given the global audience and the fact we’re shortly going to have all of the betting brands coming off the front of shirts," he explained. While blue-chip brands may still dominate the highest echelons of sponsorship deals, the financial muscle of crypto companies is not to be underestimated. Borson pointed out that these companies have the financial capacity to invest in high-profile marketing campaigns, which makes them attractive partners for football clubs. "The crypto guys have got money to spend on marketing, and ultimately, there is a fairly limited group of people that are prepared to write cheques for £8-10 million of sponsorship, so you have to take the money where it’s available," Borson concluded.
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