Formula One Teams Make Moves in Crypto
In the summer of 2021, Formula One announced a partnership with one of the fastest-growing crypto exchanges, with over 10 million users worldwide, as the inaugural global partner of the new Sprint series. This important partnership elevates crypto to mainstream multi-media and introduces crypto to a mass audience who may not have any previous knowledge or awareness on the subject.
Then in February 2022, Formula One world champions, Red Bull Racing, announced details of a sponsorship deal with a Singapore-based crypto exchange worth a reported $150 million. Although details on the deal are scant, it is understood to be the largest cryptocurrency sponsorship deal in international sport, signalling continued adoption and legitimacy for crypto.
The three-year deal sees the crypto exchange become a Red]Bull Racing ‘principal team partner’, with the aim to grow fan engagement and manage the issuance of the forthcoming fan token. The deal comes after the company became the main sponsor of the Argentinian national football team in November.
Lewis Hamilton, who is arguably the most famous and successful F1 driver currently racing for Mercedes, is sponsored to wear the branding of another crypto exchange. Further expanding global awareness across the Formula 1 fanbase.
Fan tokens are digital assets that enable sports teams, leagues, clubs, associations, and players to strengthen engagement with fans around the world. The rise of this unique area of digital assets is expected to continue throughout the year and into the near-term future, as more and more household names look to get involved.
Holders of fan tokens are permitted to access a variety of fan-related membership perks such as voting on club decisions, rewards, merchandise design, and unique fan experiences. Fan tokens have the ability to democratise and organise fan engagement while giving the fan the opportunity to feel more involved. Unlike NFTs, fan tokens are interchangeable and just like fiat, can be exchanged for merchandise, VIP experiences, and much more.
The world-class football player, Lionel Messi, recently signed a new contract with the French team PSG in which a percentage of his payment is being paid in the PSG Fan token. How long will it be before F1 drivers start getting paid in fan tokens by their teams?
“At the forefront of technological innovation”
In a statement, Red Bull Racing team principal, Christian Horner, stated that “the team’s passion to exist at the forefront of technological innovation, to set the competitive pace and to disrupt the status quo.” Horner went on to say that the partnership with the crypto exchange would enliven “the fan experience in F1 through digital innovation…… and will help us build a deeper, more immersive, and unique connection with the team for fans around the world.”
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.