Deal with major European league seems to have gone sour.
A sponsorship deal worth hundreds of millions of dollars was on the table for Crypto.com as the company seems to be backing out. The deal was with a prestigious soccer league in Europe.
The deal with the Union of European Football Associations or UEFA would have seen the crypto trading firm eligible for a $500M payday. The crypto firm is well-known for bringing their brand to sports with a stadium in the Los Angeles area purchased for $700 million.
The deal was for five seasons each at $99.9 million per season. The deal was stated to be agreed upon in initial talks but during the final advanced stages of negotiations everything fell apart. The bear market was officially blamed for the issue however.
It would seem that bureaucracy and red tape were to blame for the falling of this deal. Crypto.com obtained legal advice that touched on discussions with national regulators in some of the Key European countries such as France, The United Kingdom and Italy. The talks were about proper licenses and regulations for operating in those countries. Perhaps certain new regulations imposed after the Terra disaster may be the culprit as the regulations may have made it a bit difficult for the company to handle business the way it regularly does.
Crypto.com did receive approval from the Financial Conduct Authority (FCA) in the United Kingdom however to operate as a digital asset business, and registration and license were granted by South Korean Authorities for the company to operate as a Virtual Asset Service Provider. There were more licenses to operate given to the company in Italy, Cyprus, Singapore, and provisionally in Dubai as well. The company is doing quite well with its plans to spread internationally.
The news did not hinder the native asset CRO as it stayed stable at $0.119 at the time of the news only dropping to $0.118 recently.