History was made in the Tottenham camp on July 16 as it signed its first official crypto, web3, and sleeve partner for both its Men and Women team with US-based crypto exchange giant Kraken. Kraken’s Chief Marketing Officer, Mayur Gupta, on this momentous occasion, took a minute to express his excitement in closing the deal with the Spurs and how it advances Kraken’s vision. He said:
“Kraken has a vision that crypto, like football, should be accessible to everyone. We’re therefore thrilled to partner with Tottenham Hotspur to bring this inclusive financial technology to a larger audience of football fans.”
Photo by Mario Klassen on Unsplash
Ryan Norys, Tottenham Hotspur’s Chief Revenue Officer, in a statement directed at the Spurs fans, expressed how this partnership was designed to serve them better. An excerpt reads, “We look forward to bringing our fans a range of exciting events and experiences throughout the course of the partnership.”
What does this mean for Tottenham?
So what exactly does Kraken’s vision, in Mayur Gupta’s words, “…accelerating the global adoption of crypto so that everyone can achieve true financial freedom and inclusion.” actually mean for Tottenham?
Innovation and Technological Advancements
Cryptocurrency has permeated many industries, the finance sector the most apparent with its ease of use and relatively low fees. These advantages then rippled into entertainment, specifically online gaming, to invent crypto casinos where users can utilize crypto instead of fiat to take advantage of these benefits and much more. Another way it is aiding the evolution of the entertainment industry is the innovations and technological advancements it is bringing to ordinary features of sporting activities like football.
One such way is unprecedented transparency between the board and the fans. The introduction of Web3 technology allows the club to put all its financials on a blockchain that the fans can easily access. This will quell any fears fans might have that the club’s funds are being mismanaged and help Spurs avoid a “Glazers out” type of situation.
Fan Engagement
This is not Tottenham’s first foray into using cryptocurrency and the blockchain to enhance fan engagement. In September 2023, the club created web3 fan tokens on the Chillz network through Socios.com. However, they will be hoping for even better results as they have partnered with one of the many Silicon Valley giants in Kraken.
The idea is to use technologies like NFTs to create unique memorabilia, such as trading cards and tokens, for the fans to help them capture memorable moments in their sporting history, like Gazza’s magic moment at Wembley in 1941, Ricky Villa’s goal at the 1981 FA Cup final, or every single time Spurs dunked on Arsenal Football Club in competitive football.
Revolutionize Merch Sales
Another way this crypto-sports marriage works for Tottenham Hotspur is that it offers them access to technology that can significantly revolutionize how they approach merchandise sales.
From the use of smart contracts to make the process more efficient to the deployment of cryptocurrency payment options for their ease of use, they have become popular everywhere, from online retail outlets to local and offshore casinos and supply chain administration, which allow them to know their inventory at a glance, know which merch is selling faster, which stores need supplying and how quickly. Lastly, they can also use the blockchain to verify the authenticity of their merch and win the war on counterfeiting.
What does it do for Kraken?
We have taken a look at how this deal benefits Tottenham, but what exactly is in it for Kraken? For starters, there’s a huge chance Kraken will go public in 2025, and it would like to raise $100 million before doing so. Its investment in Tottenham will reinforce its financial position. Beyond this, the following are some other ways Kraken benefits:
Increasing brand visibility
The most obvious will be increased brand visibility. The cryptocurrency world is massive but nowhere near as vast as the sporting world, with very few sports holding a candle to football. Football is a global phenomenon enjoyed worldwide, with the English Premier League considered to be the most popular of the top five leagues.
While Tottenham does not have the same acclaim as some other teams in the league, like Manchester United, Liverpool, and, more recently, Manchester City, there’s still no denying how huge a presence it has on the footballing scene. Popular figures like Luka Modric, Harry Kane, and Gareth Bale have adorned its white and blues.
Targetting new demographics
It’s one thing to know your brand will be seen by a lot of people, and another thing to know is that it is reaching multiple demographics. Alternatively, Kraken would have needed to invest millions of dollars in multiple marketing strategies to reach the different demographics adequately, but it can reach all of them at once with football—it’s a one-stone, all-the-birds-in-the-bush type of situation.
Conclusion
Every way you look at it, both Spurs and Kraken win with this deal. It’s also not a trial-and-error situation, as similar arrangements have proven to work between crypto companies and sporting outfits, with Manchester United and Tezos, PSG and Crypto.com, and Manchester City and OKX readily coming to mind.