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Formula 1 Strikes $100 Million Digital Currency Sponsorship Deal


06/30/2021


Formula 1 Strikes $100 Million Digital Currency Sponsorship Deal
Crypto.com, a platform that allows its clients to purchase and sell digital currencies has struck a deal with Formula 1 for a sponsorship worth $100 million for a five year period, according rto reports quoting information from sources with knowledge of the matter. 
 
According to the deal of sponsorship, brand presence around F1 occasions will be given to Crypto.com including in the new Sprint qualifying format that is slated to be used in some races for determining the starting positions of the cars. For the rest of the season, trackside slots at F1 races will also be given to Crypto.com as a part of the deal.
 
A new award at F1′s Belgian Grand Prix in August will also be introduced by the company and it will also become the NFT partner of F1.  The sponsorship agreement is slated to come into force from July 17 just a day prior to the 2021 British Grand Prix at the Silverstone Circuit in England.
 
Expertise from Crypto.com would be used by the racing organization “as we explore the world of cryptocurrency, an area we are very interested in”, said F1 director of commercial partnerships Ben Pincus in a statement.
 
Crypto.com has an app available for Apple and Android devices and claimed to have more than 10 million users on its platform, the company said. Transaction fees are the main source of revenue for the company. It also has sponsorship ties with other sports events and teams including the F1 team Aston Martin and National Hockey League franchise, the Montreal Canadiens, the company said.
 
Liberty Media Corporation is the current owner of F1 and this global racing entity was purchased by it 2016 for $4.4 billion.
 
The sponsorship deal was mediated by sports agency Creative Artists Agency.
 
“We look forward to many years of innovating together,” Crypto.com co-founder and CEO Kris Marszalek, said of the F1 agreement. “We’re also excited to partner with F1 in the development of exclusive NFTs, connecting fans to the sport in new and innovative ways.”
 
(Source:www.cnbc.com)