Formula 1 crypto sponsors crash out with £830 million in unpaid bills

Scuderia Ferrari this week joined a long list of teams and events forced to cancel lucrative sponsorship deals with struggling crypto firms. Over forty different crypto sponsorship deals collapsed in the last year alone, resulting in £830 million in lost sponsorship value. So, what do these now collapsed deals mean for other sponsors in the industry?

Putting aside complex sponsorship valuation formulas and methodologies, the single greatest measurement of sponsorship value is a market approach. How much have other companies paid for similar deals. Unfortunately, over the last three years, crypto firms have been guilty of artificially inflating the perceived value of sponsorship by agreeing record-breaking deals they can not afford.