The exchange operator invests between $25 million and $50 million annually in sponsorships with two sports giants – McLaren and Manchester City. The partnership appears to be very fruitful, as OKX officials plan to extend it significantly.
Sports sponsorship paves the way for growth
The cryptocurrency industry has long entered the field of sports, and there are many indications that it will remain in this space permanently. A case in point is the OKX exchange, which has declared its willingness to continue sponsorship agreements with Formula One team McLaren and soccer club Manchester City. These collaborations would span a full decade. This is a bold move, given the ephemeral nature of other similar collaborations in the past.
Haider Rafique, global marketing director at OKX, stresses that their agreement with McLaren has already been in place for five years, and his ambition is for it to extend for at least a decade. “This is not something that comes naturally to cryptocurrency companies,” he says. – Rafique notes, suggesting that long-term relationships between companies in the industry and sports organizations are rare.
Sponsorship expensive, but apparently very profitable
An example of failure is FTX, the cryptocurrency exchange that experienced a dramatic collapse last year. FTX sponsored the Mercedes-AMG Petronas team and briefly renamed the Miami Heat stadium “FTX Arena.” The combination of all these events prompted sports organizations to rethink their approach to their relationship with the crypto industry.
However, OKX managed to keep its partners, such as McLaren and Manchester City. Ahead of the recent Formula One Grand Prix in Singapore, the company unveiled a new, discreet version of the McLaren car, with the OKX logo on the hood. It’s not a cheap pleasure, as OKX spends between $25 million and $50 million annually on advertising, much of which goes to the aforementioned partners. This year alone, the investment in F1 industries has increased for OKX by an additional $6-7 million.
A chance for cryptocurrencies to become part of social everyday life
Rafique stresses that OKX does not rely on future revenues to maintain these agreements. The funds for these investments are properly prepared and secured. “Every year we have a payment schedule and we meet them absolutely on time,” he says. – he assures.
There is strength in long-term relationships – this is the belief behind OKX. One example is the iconic Marlboro branding on Ferrari cars, which has been remembered for generations. “Your dollars must build capital,” – Rafique concludes.
It’s worth noting that OKX hopes their long-term commitment will not only bring financial benefits, but also strengthen the position of cryptocurrencies in the sports world.