Coinbase has deepened its presence in the sports industry through its sponsorship deal with the German football club giant Borussia Dortmund (BVB). The two inked the deal last year in July but officially announced it only recently.
Coinbase Becomes BVB Sponsor
The crypto exchange's EMEA Regional Managing Director, Daniel Seifert, told local news outlet Handelsblatt that Coinbase is expanding its deal with the German football club giant. Earlier, Coinbase advertisements were displayed on video screens during the club's home game. Additionally, it ran workshops on crypto for BVB employees.
Now, with the enhanced terms, advertisements of the crypto exchange on the stadium and promotions on all other marketing channels of the club will be expanded. The logo of the crypto exchange will be displayed on the perimeter of the club's home ground, Signal Iduna Park, which has a capacity of 81,365.
However, the partnership is only effective until June, the end of the ongoing play season.
"The industry is highly exciting, but still new. We, therefore, want to keep the flexibility open," said BVB's Managing Director, Carsten Cramer (translated from German).
Check out the latest FMLS22 interview with Coinbase's Director of EMEA Business Development, Lory Kehoe.
BVB Is a Club with a Rich History
Ballspielverein Borussia 09 e. V. Dortmund, commonly known as Borussia Dortmund, is one of the top football clubs in Germany, as well as in Europe. Based in Dortmund, the club was established in 1909 and has won several domestic and international titles over the years.
Coinbase's partnership with the club looks to be strategic as it will benefit from the club's popularity and its mass fan following all over Europe. Moreover, the club has an extensive social media presence, with more than 15 million people liking its Facebook page and 17.3 million followers on Instagram. Any promotions on the club's physical or digital infrastructure will catch the eyeballs of hundreds of millions of football fans as these matches receive global telecast.
A Strategic and Cautious Deal
The sponsorship deal came when Coinbase expanded its presence outside the United States, especially in Europe. It received authorization from Germany's BaFin in 2021 for providing cryptocurrency custody services and received regulatory approval in Italy and the Netherlands last year.
The company's partnership with the German club is its first foray into the football field. However, sports deals are familiar for the exchange. Last year, it closed a major multi-year deal, becoming the exclusive cryptocurrency platform partner of the NBA in the US.
Meanwhile, Coinbase recently stopped its operations in Japan, citing market volatility . On top of that, the crypto exchange reached a $100 million settlement with the New York regulator for anti-money laundering failures. Last November, the German financial market regulator ordered Coinbase to ensure "proper business organization."
Furthermore, the German football club highlighted that it was cautious in entering into a deal with the cryptocurrency company. "As a listed association, we have imposed special requirements. Coinbase's Bafin license was a basic requirement for cooperation," BVB's Cramer said. "We did not get on the most tempting offer. For us, reliability was in the foreground."
