Atletico Madrid, a Spanish football club, is preparing to take legal action against WhaleFin, a Singapore-based cryptocurrency exchange. The football club claims that WhaleFin has defaulted on a €40 million ($44 million) sponsorship agreement.
According to Atletico Madrid, WhaleFin has violated the terms of their contract and failed to make the agreed-upon sponsorship payment. As a result, the football club is seeking €20 million ($22 million) in compensation for these alleged breaches.
WhaleFin is a comprehensive digital asset platform that specializes in services related to cryptocurrencies and NFTs. The platform offers users a wide range of features and tools to buy, sell, trade, and invest in digital assets. Its goal is to provide an all-in-one solution for managing digital wealth and facilitating crypto transactions and investment strategies.
Sponsorship deal in 2023/2023 season
At the start of the 2022/23 season, Atletico Madrid entered into a five-year sponsorship agreement with WhaleFin, making the cryptocurrency exchange one of its main sponsors.
This partnership was expected to bring financial benefits to the football club, boosting its revenue through the sponsorship deal.
However, in February 2023, reports surfaced that WhaleFin was considering terminating the sponsorship deal, less than a year after it was signed. The deal was reportedly valued at approximately €40 million per year.
Soon after, it was confirmed that the sponsorship deal with WhaleFin would be ending prematurely, despite originally being a five-year contract. The termination was attributed to the “cryptocurrency crisis.” As a result, Atletico Madrid found itself without its primary sponsor for the upcoming season.
As a result, Atletico Madrid is now claiming that WhaleFin has failed to fulfill its financial obligations as outlined in their sponsorship contract.
The reported non-payment of the agreed-upon €40 million has led Atletico Madrid to initiate legal proceedings against WhaleFin.
The club argues that WhaleFin’s actions constitute a breach of contract, which has caused damage to Atletico Madrid’s financial interests and reputation.
This situation bears similarities to recent incidents involving Italian football clubs Inter Milan and Roma. In those cases, blockchain firm DigitalBits faced sponsorship terminations due to its inability to meet financial commitments.
Inter Milan alleged a non-payment of over €16 million ($17 million), while Roma cited a figure of €11 million ($12 million). Failing to fulfill sponsorship payment obligations resulted in both clubs severing ties with DigitalBits.
