ESPN reports that the UFC has signed a deal with Cryptocurrency platform Crypto.com to be the “Official Fight Kit Partner” of the company. Although terms of the deal were not disclosed publicly, it is said by people familiar with the partnership that it’s worth $175 million over 10 years.
The multiyear deal will give Crypto.com a brand presence on fight kit items. It will also own the rights to UFC’s newly created “Cryptocurrency Platform Partner” sponsorship category.
Crytpto.com is a platform that allows users to buy and sell cryptocurrencies like bitcoin and Ethereum. It makes revenue from transaction fees and states it has 10 million users.
This deal appears to be a part of the company’s strategy as it closed a sponsorship deal with Formula 1 for $100 million last week.
According to ESPN’s Marc Raimondi UFC fighters will not get a direct cut of the revenue from the Crypto.com deal but will be able to broker individual deals with the company and be used as paid brand ambassadors.
The announcement comes before Saturday’s big UFC 264 featuring Conor McGregor and Dustin Poirier.
Payout Perspective:
This is big news for the UFC as the deal nets more revenue for the company and pleases investors in Endeavor. The question as always with big money UFC deals is what percentage do athletes receive. Here, the answer is zero. While there are options for athletes to negotiate their own deals, it is likely less than the amount they would receive if they were to broker deals with other sponsors. It is an option, but not a concrete deal especially with the marketplace for athletes are likely limited to a select few.
Leave a Reply