$100 million sponsorship deal between VeChain and UFC
Blockchain logistics company, VeChain Foundation, has signed a multi-year marketing partnership with the Ultimate Fighting Championship (UFC) worth nearly $100 million, becoming the first-ever layer-1 blockchain partner of the UFC.
The UFC is the largest promoter and organizer of events for Mixed Martial Arts (MMA) and VeChain’s marketing assets and brand will be integrated across the UFC in live events, arena promotion, social media and other areas.
The deal would be worth nearly $100 million over a minimum five-year partnership, according to an unnamed source cited by Sports Business Journal. UFC senior vice president of global partnerships Paul Asencio said UFC sponsorship revenue increased 30% from an already record-breaking 2021 thanks to the deal.
The partnership kicks off immediately and VeChain assets will start appearing on June 11 at a UFC event to be held in Singapore.
VeChain is a business-focused Layer 1 ecosystem with a focus on supply chain tracking. The partnership sees a big change from Vechain’s frugal first quarter. A financial report released in May shows that the VeChain Foundation only spent around $4 million in the first quarter, with less than $660,000 spent on marketing, but it amassed a huge “war chest” of 1, $2 billion.
VeChain said the partnership is “one of the deepest integrations within major UFC assets of any sponsor in UFC history,” with UFC estimating the VeChain brand will reach 900 million TV households. in 175 countries.
As part of the agreement, VeChain will hold the official UFC fighter ranking titles, now called “UFC Rankings Powered by VeChain”, as well as a branded presence inside the fight ring at all times. events.
VeChain will additionally be promoted locally on leading digital screens, and the two companies will create content for UFC social media and other digital platforms, which UFC estimates will reach 200 million. of people.
An annual “brand ambassador fund” will also provide paid opportunities for UFC athletes participating in marketing activities for VeChain.
Related: Blockchain, crypto poised to take sports industry beyond NFT collectibles
UFC has long partnered with blockchain and crypto companies. One of the UFC’s biggest partnerships is its $175 million deal with Crypto.com, which saw the crypto exchange become the UFC’s “cryptocurrency platform partner.” , with fighters receiving fan bonuses in Bitcoin (BTC) through the partnership.
Crypto.com also released the first licensed UFC non-fungible token (NFT) collection in November 2021, and the UFC continued to release more NFTs under license with NFT developer Dapper Labs.
In March 2021, crypto-only casino and sportsbook platform Stake became the UFC’s “first official betting partner” for its Asian and Latin American markets.