Crypto News – In the world of sports advertising, many promotions by crypto companies have been short-lived. OKX, a partner of UEFA Champions League champions Manchester City and Formula 1 team McLaren, plans to make a deeper impact.
OKX is not Yet Intending to End Deals with McLaren and Manchester City
A sad reminder of the crypto industry’s occasionally fleeting relationship with sports teams is provided by FTX, the Sam Bankman-Fried-run cryptocurrency exchange that abruptly went bankrupt last year. Before declaring bankruptcy, FTX had its logo painted on Mercedes-AMG Petronas race cars and temporarily changed the name of the Miami Heat’s arena to “FTX Arena.”
Our deal (with McLaren) is five years and my motivation is that it extends into a decade-long deal at the very least. And this is not something that comes naturally to crypto companies.Haider Rafique, global chief marketing officer at OKX
OKX Spends Millions of Dollars on Advertising Every Year
On the other side, OKX has, up to this point, maintained its partnerships. The company yesterday debuted a new, stealthier-looking McLaren car in Singapore ahead of this weekend’s Grand Prix, complete with its branding.
It costs money to be allowed to participate in such activities. According to Rafique, OKX spends between $25 and $50 million on advertising annually, with a large portion going to McLaren and Manchester City. However, of course, these figures are erratic. According to Rafique, OKX increased their spending with McLaren this year by $6-7 million.
We’re not betting on future revenue for the survival of these deals or relationships, in fact we’ve taken money aside and that money is put aside as a liability and that money doesn’t get touched. There’s a schedule of payments every year and we fulfill those payments absolutely on time. When these deals have a generational impact is when they’re long-term. Remember the Marlborough branding on Ferraris? I don’t think any of us can forget it. Your dollars have to build equity,Rafique