A tricky match is underway between a soccer club and a crypto exchange. Spanish Premier League club Atletico Madrid is suing crypto exchange WhaleFin. The Singapore-based platform is accused of failing to pay the club $44 million as part of a sponsorship deal.
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Atletico Madrid ready to take on WhaleFin off the pitch
Spanish Football Club Atletico Madrid is a formidable opponent on the pitch. Off it, the Atletico Madrid is not one to be intimidated either. As evidenced by its decision to sue the exchange WhaleFin. The Spanish club accuses the crypto exchange of non-payment of $44 million in sponsorship revenue.
The case dates back to just over a year ago. In May 2022, the Spanish club announced a five-year agreement with WhaleFin. As part of this partnership, the exchange WhaleFin is set to become one of the Spanish club’s main sponsors. In return, the Atletico Madrid would pocket sponsorship fees valued at $44 million. However, WhaleFin did not keep his word, according to the Spanish club. Atletico Madrid is now demanding his 44 million in sponsorship fees and $22 million in compensation.
Financial difficulties prevent WhaleFin from honoring its commitments
The exchange WhaleFin has not been very forthcoming about this accusation. And given the difficult financial situation facing the exchange, it’s a safe bet that he won’t be keeping his word.
Indeed WhaleFin is a property of Amber Group which is facing major financial difficulties. Last December, Amber Group has had to terminate its partnership with English club Chelsea, reports Bloomberg. The company had also laid off 40% of its staff, retaining just a 400-strong team.
The crypto ecosystem is a major sponsor of sporting activities. This partnership is often exposed to the vagaries of crypto companies’ financial health. For example, the Arena sports hall in Miami, which turned its back on FTX when it collapsed...
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