The $10 million prize pool will be distributed in cryptocurrency, marking a first for a major golf event.
Crypto Meets Golf in ‘The Showdown’
The annual golf exhibition “The Showdown,” featuring PGA Tour stars Rory McIlroy and Scottie Scheffler against LIV Golf’s Bryson DeChambeau and Brooks Koepka, has introduced a unique twist: the $10 million prize pool will be awarded in cryptocurrency.
Title sponsor Crypto.com announced that the event would distribute winnings in CRO, the native token of the Singapore-based crypto exchange. This marks the first major golf tournament to offer a multimillion-dollar cryptocurrency purse.
Athletes Embracing Cryptocurrency Payments
While “The Showdown” is a groundbreaking event in golf, it’s not the first time professional athletes have leaned into crypto. NFL players like Russell Okung and Odell Beckham Jr., as well as NBA stars like Klay Thompson, have previously converted portions of their salaries into cryptocurrencies.
In 2020, Okung famously converted half of his $13 million base salary into bitcoin. His investment paid off, as bitcoin’s value surged from $27,000 then to over $100,000 now. Other athletes, like Jacksonville Jaguars quarterback Trevor Lawrence, have explored similar ventures, although outcomes have varied due to crypto’s inherent volatility.
The Appeal of Crypto Sponsorships
Crypto companies have increasingly turned to sports sponsorships to gain brand visibility. Crypto.com, for instance, purchased naming rights for the former Staples Center in Los Angeles and has partnered with global events like Formula 1 and the UEFA Champions League.
Sponsorship deals, such as “The Showdown,” allow crypto firms to engage with younger, tech-savvy audiences while cementing their brand presence in mainstream culture. David Carter, a sports business professor at USC, noted these efforts aim to establish credibility and foster long-term customer loyalty.
Crypto and Sports: A Volatile Combination
Despite the excitement, experts warn that cryptocurrencies remain highly volatile and unpredictable. Caleb Silver, Investopedia’s editor-in-chief, emphasized that while crypto investments can yield significant returns, they carry substantial risks.
Crypto.com’s decision to pay golfers in CRO underscores its effort to integrate digital currencies into everyday financial systems, but the reception among fans and players may hinge on the stability of the market.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
