- Tezos branding absent during Red Bull’s recent show run
- Company still a partner of fellow F1 outfit McLaren
Blockchain collectibles platform Tezos is terminating its multi-year sponsorship deal with Formula One team Red Bull Racing.
In May 2021, the racing constructor announced a partnership with Tezos, with the company briefed to help build and create a series of bespoke non-fungible tokens (NFTs) available on its blockchain platform. As well as being the team’s official blockchain partner, Red Bull’s cars were to also feature Tezos branding.
Now it appears as though the agreement has been terminated early, with Tezos no longer included on the list of partners featured on the team’s website. In addition, the company’s branding was absent during Red Bull’s recent show run. The Formula One outfit has yet to comment on the current status of the deal.
“The Tezos Foundation decided not to renew its agreement with Red Bull Racing as it was no longer in line with its current strategy,” said Mason Edwards, chief commercial officer of the Tezos Foundation.
The potential termination with Red Bull would not mark the end of Tezos’ association with the sport, as the company still has a multi-year agreement with another Formula One constructor in McLaren Racing.
Earlier this year, the blockchain platform also signed a multi-year training kit sponsorship pact with English soccer giants Manchester United, which is worth a reported UK£20 million (US$27.2 million) per year. In November, the club launched an NFT collection based on Tezos’ blockchain.
The latest deal termination involving a blockchain brand comes amid a broader decline in the value of NFTs and the continuation of a ‘crypto winter’ that is denting what previously appeared to be a lucrative sector for sports partnerships teams.
Red Bull’s deal with Tezos goes the same way as rivals Mercedes’ partnership with FTX, albeit the Silver Arrows were forced to suspend their deal after the cryptocurrency exchange completely collapsed.
However, the likely termination does not spell the end of Red Bull’s association with the Web 3.0 sector completely, as they still have a multi-year partnership with cryptocurrency exchange firm Bybit, which is reportedly worth US$50 million per year.