- Ferrari failed to comply with clauses in Velas contract
- AlphaTauri become latest F1 team to part ways with crypto sponsor
Following the news that Ferrari are set to drop two of their premium partners for the 2023 season, it has emerged that the Italian team is facing a US$55 million deficit in its sponsorship portfolio as a result of the move.
According to RacingNews365, it was Velas' decision to end the relationship with Ferrari amid accusations that the Formula One team did not allow the brand to create non-fungible token (NFT) team images.
However, Velas is also said to be in breach of the financial terms in the contract so, RacingNews365 says, legal action is being considered by both parties.
The decision to part ways with Snapdragon, though, is said to be mutual, with parent company Qualcomm recently signing an agreement with Mercedes. It is therefore expected that Snapdragon will partner with Mercedes in some form for the upcoming season.
According to RacingNews365, Velas and Snapdragon contributed around a quarter of the Italian team's annual sponsorship income, with the loss of those deals contributing to a US$55 million hole in Ferrari's budget.
The issues with Ferrari and Velas continue a rocky patch for cryptocurrency brands in Formula One, with AlphaTauri becoming the latest to part ways with a company in the blockchain space. Fantom, which was associated with the Red Bull-owned team last season, will no longer be working with AlphaTauri, although it should be noted that the blockchain platform was linked to Pierre Gasly, who joins Alpine for the start of the 2023 season.
The Faenza-based team also appears to have dropped Forex, commodity and contract for difference (CFD) trading firm ICM Capital.