https://ift.tt/PFL81g6 Barcelona rejects a $79 million crypto sponsorship deal

TL;DR Breakdown

• FC Barcelona has rejected a $79 million sponsorship deal from a crypto firm over ethical concerns.
• The club was worried about the potential negative impact that such a partnership could have on its image.

FC Barcelona has rejected a sponsorship deal from an unnamed cryptocurrency firm following some concerns raised by the club officials regarding the risk associated with cryptocurrencies. According to reports, the crypto company offered over $79 million to become the club’s official sponsor for the next season.

FC Barcelona chooses Spotify over $79M crypto deal

However, the president of Barca Joan Laporta and the managing board turned down the offer, noting that the cryptocurrency sector is unethical given its speculative nature and high volatility in the value of digital currencies. The board precisely noted that “[Crypto] is a speculative, risky, highly volatile and unethical sector.”

In what president Laporta said “felt safer,” the club rather signed a sponsorship deal with Spotify, one of the leading music streaming services, despite the deal “is worth significantly less than the deals that were offered by the cryptocurrency companies.” This will see the club include Spotify branding in their jersey, training shirt, as well as the stadium.

The exact amount paid by Spotify in the deal is still unknown. However, it was speculated that Spotify would pay approximately $320 million for the three-year deal.

This is just the latest in the list of clubs and organizations that have been wary of working with cryptocurrency firms amid the risks associated with cryptocurrency. Although Barcelona already has a fan token trading in crypto exchanges, it hasn’t agreed to a crypto deal despite attempts from prominent companies like Binance and Polkadot, according to reports.

On the other hand, many football clubs have collaborated with crypto-related firms. English Premier League side Arsenal once reached an agreement with CashBet Coin. In December, Italian side Juventus announced a partnership with blockchain platform Socios.com which enabled the club to issue its own branded cryptocurrency, JUV.