Drone Racing League and cryptocurrency platform Algorand reached a sponsorship agreement, the most significant for both to date, DRL reported, cited by CNBC. While the terms of the agreement were not publicized, insiders told CNBC it was worth $100 million and would run for five years. Since DRL was founded, the German-based Allianz has held the title rights. The financial services company will stay on as league partner.
Crypto firms taking over sports?
This year, crypto firms are taking over sports naming rights assets, including in MLB and NBA. One company made a deal with Liberty Media-owned Formula 1, also worth $100 million. Boston-based Algorand has a blockchain and is traded under the ticker symbol ALGO. Companies are using sports sponsorships to create awareness as a way of attracting more digital users as crypto continues to evolve in the financial sector.
DRL president Rachel Jacobson describes the partnership with Algorand as the “perfect marriage.” She said:
“Generation Z are digital-savvy, early adopters who care just as much about an Apple iPhone launch as they do about sports and entertainment. When you look across what’s happening with crypto and blockchain, you have to make sure that you’re targeting the right audience. You need to build in the right programming so that it’s not just a logo slap. The crypto community, they are too smart – they see through just a jersey patch or signage. They want to know, ‘How do I get involved? And how is this going to change my sports experience?’”
DRL reaches 75 million fans worldwide
DRL is a racing league where you take the role of a drone pilot, race devices through brightly lit courses, and compete for prize money. Founded in 2017, the company’s current value sits at $200 million. The league has a streaming deal with Twitter, media rights deals with NBCUniversal, and agreements with T-Mobile, DraftKings, and Bodyarmor among others. The company helps the US Air Force recruit and train future drone drivers.
Global drone market to reach $58B by 2026
Known as the “Unmanned Aerial Vehicle” market, the sector is estimated to reach $58 billion in the next five years, Markets and Markets reports. The company’s president says it will drive revenue up by leveraging its products. DRL builds and designs the drones used in racing events. They can reach speeds of 90 mph and cost around $2,000 each.
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