D.C. United on Tuesday said it signed a new three-year jersey sponsorship deal with XDC Network, a hybrid blockchain tech platform.
The deal, which includes Singapore-based XDC Network being the team’s official blockchain and nonfungible token marketplace partner, is worth in the mid-seven figures annually, according to a source.
This is XDC’s first sponsorship deal in sports; the company's logo will appear on both the D.C. United main kits and training kits starting this year. XDC replaces Reston government contractor Leidos Holdings Inc., which had been D.C. United’s kit sponsor from 2014-21. Leidos (NYSE: LDOS) will remain a team sponsor.
D.C. United President of Business Operations Danita Johnson, a recent 40 under 40 honoree from the Washington Business Journal, said the team started focusing on kit talks with prospective sponsors last summer after learning Leidos would no longer fill that role. She noted three key reasons for what stood out about XDC Network: helping enhance the overall fan experience, educating fans about blockchain technology and being both user-friendly and community-driven.
“We get to now work with them on how do we actually enhance fan experiences, both from an in-game perspective, in addition to outside experiences through the fan token platform that we’ll be building out with them,” Johnson said.
The fan token program cited by Johnson will provide exclusive experiences and special access to those D.C. United fans via a rewards program.
Earlier this month, the Washington Nationals announced a sponsorship agreement with Terra, a cryptocurrency community. The deal is worth as much as $40 million and includes Terra taking the title sponsorship of the all-inclusive club space behind home plate at Nationals Park, an area formerly known as The Nationals Club. Terra will also get in-stadium signage and paves the way for UST, Terra's stablecoin, to be accepted as payment at the ballpark as early as the 2023 season.
XDC Foundation Executive Director Bill Sebell said the goal with the relationship with D.C. United is two-fold. “One is to bring users to the network, and we do that by developing applications on the network with a fan base that’s actively engaged," he said. "That retail piece is really important, just users. And the other is really developing the network by showcasing the ability of the network where developers or businesses would like to come on and develop an application on it and bring it to their people and their audience.”
Johnson and the team’s sponsorship group led talks. New York-based sports marketing agency Allied Sports, which represents D.C. United in their front-of-jersey commercial sales, also advised XDC Network on the deal as the brand's sponsorship agency. Allied also will handle strategy and activation for the company as it relates to the deal.
