In the world of crypto and sports, partnerships can be as fleeting as a passing breeze. But OKX, the crypto exchange operator, is setting its sights on long-lasting relationships with two sports giants: McLaren and Manchester City.
Many crypto companies have made splashes in the sports advertising scene, but these stints have often been short-lived. OKX, however, is determined to leave a lasting impression. Their partnership with McLaren, the Formula 1 racing team, initially spans five years, with hopes for it to extend to a decade or more.
Haider Rafique, the Global Chief Marketing Officer at OKX, acknowledges that such long-term commitments are uncommon in the crypto world. He sees the potential for these extended partnerships to make a significant and lasting impact—a concept not commonly associated with crypto companies.
To appreciate the significance of OKX’s dedication, consider the example of FTX, another crypto exchange. FTX faced a dramatic collapse into bankruptcy not long ago. Before its downfall, FTX’s brand was prominently displayed on the race cars of Mercedes-AMG Petronas and, for a brief period, they even renamed the Miami Heat’s stadium to “FTX Arena.”
FTX’s failure prompted a global reevaluation of crypto sponsorships in the sports world. Even before this incident, crypto operators were beginning to withdraw from sports sponsorships. In September 2022, Crypto.com pulled out of a substantial $495 million UEFA Champions League sponsorship deal.
OKX, in contrast, has stood by its partners. In Singapore, just ahead of the Grand Prix weekend, they unveiled a sleek new version of the McLaren racing car, complete with the OKX logo.
However, being a part of such prestigious events comes at a cost. Rafique reveals that OKX spends around $25-50 million annually on advertising, a substantial portion of which goes to McLaren and Manchester City. These figures can fluctuate. This year, OKX allocated an additional $6-7 million to its partnership with McLaren.
Importantly, OKX is not banking on future revenue to sustain these partnerships. They set aside the necessary funds, and that money is treated as a liability, not to be used elsewhere. They strictly adhere to a payment schedule, ensuring timely fulfillment of their financial commitments.
OKX’s commitment to decade-long partnerships with McLaren and Manchester City illustrates its dedication to making a long-lasting mark in the intersection of sports and crypto advertising. It’s a testament to the power of building lasting equity with a generational impact.
