Drone Racing League

Source: Drone Racing League

The New York-based Drone Racing League has signed its most significant sponsorship agreement to date with the cryptocurrency platform Algorand, the company announced on Tuesday.

DRL is a first-person view racing league in which drone pilots race devices through neon-lit courses and compete for prize money. The company was founded in 2015 and is now valued at $ 200 million, according to PitchBook.

The terms of the deal with Algorand weren’t released, but people who knew about the deal told CNBC that it was a five-year pact worth $ 100 million. The league partner remains the German financial services company Allianz, which has held the title rights since the beginning of the DRL. Excel Sports Management has negotiated the deal with Algorand.

In an interview with CNBC last week, DRL President Rachel Jacobson called the pact with Algorand “transformative” and the “perfect marriage”. She added the crypto platform and DRL is aimed at a “tech-setter” fan base.

Jacobson described Gen Z audiences as digitally savvy, early adopters, “who are just as interested in an Apple iPhone launch as they are in 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,” she added.

Boston-based Algorand has a blockchain or digital ledger and is traded on the cryptocurrency exchange under the ticker symbol SOME. As crypto continues to evolve in the financial sector, companies are positioning themselves to attract more digital consumers by using sports sponsorship to create awareness.

This year, crypto companies took over the sport Naming rights assets in the National Basketball Association and Major League Baseball, and one company achieved a $ 100 million deal with Freedom media– own Formula 1.

Drone Racing League

Source: Drone Racing League

Jacobson, a former NBA executive, said sports help newer companies gain brand awareness, but added that crypto firms still need to educate younger audiences about the field and use engaging platforms to get their message across. According to DRL, it reaches around 75 million fans worldwide

“You have to put in the right programming so it doesn’t just be a logo slap,” Jacobson said. “The crypto community is too smart – they only see through a jersey patch or signage. They want to know, ‘How can I get involved? And how will that change my sports experience?'”

DRL starts its sixth season on September 29th. The league has media rights deals with NBCUniversal and a streaming deal with Twitter. miscellaneous Include sponsorships Agreements with Draft kings, T-Mobile, Body armor that US Air Force. DRL is helping the Air Force recruit and train future drone drivers.

Drones used in racing events are designed and built by DRL who build models for each race. The drones are worth around $ 2,000 and can fly up to 90 miles per hour.

The global drone market – described as the “Unmanned Aerial Vehicle” sector – is expected to become $ 58 billion by 2026, by markets and markets. Since DRL also acts as a drone manufacturer, Jacobson said it wants to use products to generate more revenue.

“The possibilities are endless,” Jacobson said, noting that more and more companies are testing deliveries with drones. “We build our drones and when we think of other lines of business it could be anything. We’re just getting started.”

Correction: This article has been updated to reflect the year DRL was introduced.

Disclosure: NBCUniversal is the parent company of CNBC.