According to CryptoPotato, Spanish football club Atletico Madrid is preparing to take legal action against Singapore-based cryptocurrency exchange WhaleFin over a breach of contract involving unpaid sponsorship fees amounting to €40 million ($44 million). The club is seeking €20 million in damages, claiming that WhaleFin has not fulfilled its payment obligations under a five-year agreement for the 2022/23 season.
This legal challenge comes amid financial struggles faced by Amber Group, the owner of WhaleFin. In December 2022, reports highlighted Amber Group's difficulties, which led to the termination of a similar sponsorship deal with English Premier League's Chelsea FC, valued at $25 million annually, just seven months into the agreement. During this time, the Singapore-based cryptocurrency trading firm downsized its workforce by approximately 300 employees and began winding down its retail operations.
The situation with Atletico Madrid is reminiscent of issues faced by other European football clubs in their dealings with cryptocurrency firms. Italian clubs Inter Milan and Roma experienced similar sponsorship failures with blockchain company DigitalBits, leading to both clubs severing ties after the company failed to pay over €27 million ($30 million) combined in sponsorship fees. Inter Milan and Roma removed the DigitalBits logo from their shirts due to continued payment failures.