UFC Raises Sports Cryptocurrency With Sponsorship Of ‘Fight Kit’

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(LR) Conor McGregor of Ireland hits Dustin Poirier in a lightweight bout during UFC 257 inside the Etihad Arena on UFC Fight Island on January 23, 2021 in Abu Dhabi, United Arab Emirates.

Chris Unger | UFC | Getty Images

The Ultimate Fighting Championship, owned by Endeavor, accepted a fight kit deal with cryptocurrency platform Crypto.com on Wednesday, the company told CNBC.

The multi-year agreement will give Crypto.com a branded presence on fight kit items used in the UFC, including clothing (shorts, top bras, hoodies) worn by athletes during competition and clothing worn by training personnel. In addition, Crypto.com will also own the rights to the new UFC “Cryptocurrency Platform Partner” sponsorship category.

Terms of the deal have not been publicly disclosed, but according to people familiar with the deal, it is worth $ 175 million over 10 years.

Crypto.com is a platform that allows users to buy and sell cryptocurrencies. The company earns revenue from transaction fees and has said it has more than 10 million users on its platform. Last week, the company also struck a $ 100 million sponsorship deal with Formula 1.

In a statement, Crypto.com co-founder and CEO Kris Marszalek called the UFC deal a “historic moment,” adding that it would help the sport “accelerate the world’s transition to cryptocurrency. “.

Marszalek added, “This is just the start of a long relationship with the UFC, and we look forward to what we’ll build together.”

The crypto sponsorship space remains active in 2021. The National Basketball Association landed its first team jersey patch deal with a crypto company last week when the Portland Trail Blazers signed a deal with StormX, and before. that, the miami heat has entered into an arena naming rights pact with FTX.us. Other NBA teams, including the San Antonio Spurs, could also be targets. The Spurs have a void to fill because AT&T does not renew its arena naming rights pact which expires in 2022. The team plans to assess potential crypto partners to take over the arena name.

Deiveson Figueiredo (red gloves) and Brandon Moreno (blue gloves) during UFC 263 on June 12, 2021, at Gila River Arena in Glendale, AZ.

Louis Grasse | Px images | Sportswire icon | Getty Images

Endeavor, the famous Hollywood talent agency, bought the remaining stake in the UFC in April – consolidating the mixed martial arts entity before being listed on the New York Stock Exchange. The UFC also has an exclusive licensing agreement with NFT Dapper Labs, maker of the NBA’s Top Shot product.

“We’re in amazing shape in this business (UFC) right now,” Endeavor CEO Ari Emanuel told CNBC’s “Squawk on the Street” in April. He added that Endeavor is “the company best positioned to lead the entertainment world.”

The UFC will host its main event “UFC 264” on Saturday, featuring popular fighter Conor McGregor against Dustin Poirier for the third time. The fighters have split their previous two games, including a loss to McGregor in January at UFC 257.

Endeavor has a market cap of $ 11.2 billion and the company’s shares closed down 4% on Tuesday, trading at around $ 25 a share.

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