The Australia-based crypto casino Stake.com has signed a $100 million partnership with the Alfa Romeo Formula One team in a sign that sponsorship is returning to crypto.
The new year brought fresh hope for crypto bulls as Bitcoin rallied nearly 40% so far this month. With that, the Fear and Greed Index also returned above 50 for the first time since April 2022. Well-known investors and fund managers have predicted 2023 to be a year of Bitcoin recovery.
Last year, as the FTX collapse pushed the crypto industry into an extreme bear market, hence the brands and sports teams wanted to dissociate themselves from crypto-related firms. But now, the Formula One team Alfa Romeo has announced a partnership with the crypto betting platform Stake.
Is the new sponsorship deal another sign that crypto winter is thawing?
With this partnership deal, the team will assume a new branding, “Alfa Romeo F1 Team Stake.” It will be a multi-year partnership, according to the official announcement.
However, the agreement’s exact amount and duration have yet to be officially revealed. But according to a Sydney Morning Herald source, it is a three-year contract worth $100 million.
Bijan Tehrani, the 28-year-old co-founder of Stake.com, said: “Alfa Romeo F1 Team Stake will expand our opportunities for fan engagement through brand integration and activation. We are fully committed to enhancing race weekends by creating unique experiences for all Alfa Romeo F1 Team Stake fans, growing audience engagement in the digital arena.”
This is not the first major sports partnership for Stake. Last year, it signed a sponsorship agreement with the soccer team Everton FC. The partnership was described as “the highest value front-of-shirt deal in the club’s 144-year history.”
Earlier, Stake.com partnered with pop star Drake for a $1 million Bitcoin giveaway live stream in May 2022.
F1 Deal Provokes Fan Backlash
Crypto partnerships are going through a tough phase with various regulatory guidelines for crypto advertisements. And brands and sports teams have been playing it safe by terminating any association with crypto-related firms.
F1 Team Scuderia Ferrari prematurely ended a multi-year partnership with Velas blockchain. Team Ferrari signed Velas for $30 million as a premium partner in 2021 to help bring digital collectibles and unique experiences to fans. But, the partnership didn’t last for full tenure.
Now the Alfa Romeo and Stake.com sponsorship deal is receiving some criticism from fans. This criticism is mainly because the Australia-based firm is a betting platform. They also received backlash for describing Stake as an “entertainment and lifestyle brand.”
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Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/stake-com-signs-f1-partnership-deal-fans-unhappy/