Drone Racing League signs $ 100 million deal with crypto platform Algorand

Drone Racing League signs $ 100 million deal with crypto platform Algorand

Drone Racing League

Source: Drone Racing League

The New York-based Drone Racing League has struck its largest-ever sponsorship deal with cryptocurrency platform Algorand, the company said on Tuesday.

DRL is a first-person racing league where drone pilots race gear on a neon-lit course and compete for cash prizes. According to Pitchbook, the company started in 2017 and is now worth $ 200 million.

The terms of the deal with Algorand were not made public, but people familiar with the deal told CNBC that it was a five-year deal worth $ 100million. dollars. Germany-based financial services company Allianz has held the property rights since the introduction of the DRL and will remain a league partner. Accel Sports Management negotiated the agreement with Algorand.

In an interview with CNBC last week, DRL President Rachel Jacobson called the Algorand deal a “transformative” and a “perfect match.” He added the crypto platform, and DRL both cater to a “tech” fan base.

Jacobson described Gen Z audiences as early digital savvy users “who care as much about the launch of the Apple iPhone as they are about sports and entertainment.” “When you look at what’s going on with crypto and blockchain, you need to make sure you’re targeting the right audience. “

Boston-based Algorand has a blockchain or digital ledger and is traded on a cryptocurrency exchange under the symbol ALGO. As crypto continues to grow in the financial sector, companies are able to attract more digital consumers by using sports sponsorships to market themselves.

This year, crypto companies took over the sports naming rights assets of National Basketball Association, Major League Baseball, and a company struck a $ 100 million deal with Formula 1 owned by Liberty Media.

Drone Racing League

Source: Drone Racing League

Former NBA executive Jacobson said games are helping new companies build brand awareness, but other crypto firms have yet to educate young audiences about the space and use lucrative platforms. to get their message across. Sera DRL says it reaches nearly 75 million fans worldwide

“You have to build in the right programming so it’s not just a logo slap,” Jacobson said. “The crypto community, they’re so smart – they just see through a jersey patch or signage. They want to know, “How can I get involved? And how will that change my gaming experience? ‘ “

DRL’s sixth season begins September 29. The league has a media rights deal with NBCUniversal and a streaming deal with Twitter. Other sponsorships include deals with DraftKings, T-Mobile, BodyArmor, the US Air Force. The DRL helps the Air Force recruit and train future drone operators.

Drones used in races are designed and manufactured by DRL, which builds models for each race. The drone costs around $ 2,000 and can travel up to 90 mph.

The global drone market – described as the ‘unmanned aerial vehicle’ industry – is expected to reach $ 58 billion by 2026 depending on market and markets. So, DRL also operates as a drone maker, Jacobson said, adding that he wanted to leverage the products to attract more revenue.

“The opportunities are endless,” Jacobson said, noting that more and more companies are testing deliveries using drones. “We make our own drones, and when we think of other industries, it can be anything. We’re just getting started.

Disclosure: NBCUniversal is the parent company of CNBC.

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