The COVID-19 pandemic has made a big impact on the sports industry, especially where team sponsorships are concerned. What is interesting is how there are now 30% more Champions League team sponsorships than before. A very promising trend that shows the financial sector still has a lot to offer.
COVID-19 and Sports Teams
The year 2020 will not go down in history books as a great time for sports. Whether it is for live events, attending games, or even betting on anything, this year has been very problematic across the board. For the sports teams around the world, this also creates a few financial concerns. Finding new sponsors, for example, is always a daunting task.
Add COVID-19 to the mix, and one would expect things to start looking very bleak. As it turns out, that is not necessarily the case. All major teams are still finding sponsors, although in a different industry than they would otherwise. Forex brokers are the new hot commodity among football teams in Europe as of late.
More specifically, the teams playing in the Champions League have noted an increase in forex brokers signing sponsorship deals. For the first time in six years, the brand value of the top football teams has declined significantly. Making up for this loss is not easy, yet the forex brokers are offering a helping hand.
AC Milan, for example, received financial support from forex broker Royal Forex. Not only is this a solid gesture, it also allowed the company to become the team’s official CFD partner. Forging such collaborations is crucial for all parties involved. Everyone wants the resources to reach a global audience.
Other Forex Brokers Make Their Move
Looking at other Champions League teams, the FX sponsorship trend cannot be ignored. Atletico de Madrid and Plus500 have a very solid sponsorship deal going for some time now. City rival Real Madrid and Exness have joined forces for a three-year sponsorship agreement as well.
Another of the forex brokers making its mark is IronFX. Based in Cyprus, the company had previously signed a shirt sponsorship deal with FC Barcelona. It was a major deal, as FC Barcelona is still one of the biggest clubs in the entire world. Being displayed on the team’s shirts during every game brought a lot of exposure to IronFX.
Senior Analyst at IronFX, Andreas Efstathiou, says:
“Market volatility is directly affecting the steep rise we’re seeing. Also, in the shadow of a looming financial crisis, people are actively looking for new income channels. They have time to learn more about trading and may feel like global events present a unique opportunity to make a profit. Forex trading has also been done online for many years, making it one of the most natural courses of action for new and dormant traders looking for profitable avenues.”
Platforms such as IronFX have also noted strong volume growth due to COVID-19. More and more people are exploring different markets to make money during these challenging times. For this company, the trading volume increased by as much as 300% in recent months. Establishing itself as one of the trading giants, the platform is likely to continue this rate of growth.