Ferrari NV’s Formula One Team has ended its partnership with blockchain technology company Velas Network AG, as deals between sports companies and firms in the beleaguered cryptocurrency sector continue to crumble.
(Bloomberg) — Ferrari NV’s Formula One Team has ended its partnership with blockchain technology company Velas Network AG, as deals between sports companies and firms in the beleaguered cryptocurrency sector continue to crumble.
“Unfortunately, the agreement with Velas has been terminated early by us,” Ferrari said in a statement to Bloomberg News. The company didn’t provide additional detail, saying it doesn’t comment on matters that concern a dispute, litigation, or both.
Velas did not immediately respond to a request for comment.
The Italian luxury-car manufacturer unveiled a multi-year agreement with Switzerland-based Velas in 2021 through which the technology company would create digital content for fans of Ferrari’s Scuderia racing division. Velas also became the title sponsor of the Ferrari Esports Series, which organizes online competitions under the Prancing Horse brand.
Abrupt End
The unraveling of the Ferrari and Velas tie-up is the latest sponsorship agreement between a cryptocurrency company and a sports team to end abruptly over the past few months, as the digital asset sector deals with the effects of a protracted crash in prices.
Crypto companies had become big spenders in sports sponsorships, aggressively courting retail investors globally through a flood of big ticket deals. FTX, the company founded by former CEO Sam Bankman-Fried, had previously acquired the naming rights for the arena home to the NBA’s Miami Heat. It was also a sponsor of the Mercedes Formula 1 team, as motor sport fans became an especially attractive target for crypto firms.
Many of these agreements have now ended, in some cases because the crypto companies were no longer able to make payments, or decided to cut costs. Crypto company Amber Group terminated its deal with English club Chelsea FC at the end of last year.
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