New York-based Drone Racing League (DRL) struck its largest sponsorship deal to date with cryptocurrency platform Algorand. The partnership involves a five-year contract worth $100 million, about €71.92 million.
As part of the deal, DRL would have added Algorand’s branding to the stage setup where the races take place. Additionally, the sponsor has also received World Championship title rights, starting at the end of this month.
During an interview with CNBC, DRL president Rachel Jacobson called the pact with Algorand “transformative” and the “perfect marriage.” She asserted that the crypto platform and competition are tailored to a fan base of “technology creators.”
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The executive described the Generation Z audience as digitally savvy, pioneering users “who care as much about the release of an Apple iPhone as they do about sports and entertainment.”
Push into Cryptocurrency
The tournament is looking to use Algorand’s blockchain platform for multiple applications, including ticketing. According to Jacobson, the organization is seeking to create models that provide fans the opportunity to contribute to the league’s evolution. This involves participating into the decision-making process to improve the way players experience the sport, as well as introducing new arena improvements.
“We are constantly innovating our immersive, high-speed drone racing competition with new technology. Blockchain is a plus, and we’re excited to welcome that community and join our tens of millions of young fans,” Jacobson added.
Cryptocurrency Platforms Expand into Sports
This year, cryptocurrency companies took over sports naming rights assets in the NBA and Major League Baseball. Also, one company struck a $100 million deal with Liberty Media-owned Formula 1.
Jacobson, a former NBA executive, said sports connections help newer organizations with brand awareness, but those in the encryption space will still need to educate younger audiences about it and use engaging platforms to get their message across. The Drone Racing League estimates it will reach approximately 75 million fans worldwide.
Based in Boston, Algorand has a broad digital reach, and is traded on the cryptocurrency exchange under the token ALGO.
As this instrument continues to evolve in the financial sector, companies are positioning themselves to attract more digital consumers, using sports sponsorships to build awareness.
DRL begins its sixth season on September 29. The league has media rights deals with NBCUniversal and a streaming deal with Twitter. Other sponsorships include deals with DraftKings, T-Mobile, Bodyarmor and Air Force.
Written by I Jhonattan González