Sauber has announced a new title sponsor, Stake.com, in the wake of their transition towards their future as Audi.
The deal sees Robert Kubica and person sponsor Orlen leaves the team, with the latter becoming the principal partner of Alpha Tauri. The deal between Stake.com and Sauber has been described as a record-breaking deal, speculated to be around the $100M mark.
But with the recent exodus of crypto-related sponsors and the taboo nature seen around them by fans of the sport, is this a bad move for Sauber, or will this be the dawn of a new age of Web 3.0-based sponsors?
Who are the new sponsor?
Stake.com are an online casino and sports betting platform, established in 2017, with a focus on using cryptocurrencies rather than traditional currencies, which would differentiate itself from other platforms at the time. They have a penance for sports sponsorship, primarily sponsoring both British football teams and the UFC.
Both Watford and Everton have them added on the front of their shirt, allowing them to advertise to two different leagues in England, in addition to the sponsorship of former Manchester City and Atletico Madrid striker Sergio Aguero. Not only do they sponsor the UFC, but they also sponsor individual fighters in the sport, Jose Aldo and Alexa Grosso to name two. They already have a link to motorsport two, being personal sponsors of both Pietro and Enzo Fitipaldi, however, it is unclear if this new contract with Sauber will affect that deal.
Stake.com want to spread who they are through every facet of life. Even on the Sauber partnership page, it states that “Stake is an umbrella brand used by its group on multiple business industries, including Clothing, Fashion, Sports News, Social Casinos and Gambling“. The interesting point is that “Social casinos and Gambling” are the final two points, beneath more innocuous industries such as clothing and fashion.
What is thier goal?
Stake.com has been very vocal about its plans surrounding the team. They have plans in place for fan engagement opportunities, mainly through brand integration and activation, across a few selected race weekends. One particular goal has already been carried out, in the form of a special livery, something that was outlined in the announcement press release.
It appears that Stake.com are wanting to use F1 to spread to a new demographic, one that is emerging in America. This is reinforced by their sponsorship of the UFC, as MMA is currently the fastest-growing sport in the US. With F1 expanding to three races in the US this year, this likely helped Stake.com to part with the money and become the title sponsor. F1 set new, record, viewing figures in the US in 2022. The Athletic state that F1 averaged 1.21 Million viewers across sports platforms, with 12 of the 22 races setting viewership records, and the Miami GP being “the most watched event ever in the US.”
Formula One has seen a huge increase in interest over the last few years and the arrival of brands such as Stake is representative of the massive exposure our sport can offer.
Alessandro Alunni Bravi, Managing Director of Sauber Group and Team Representative
A streaming platform and a petition.
The more eagle-eyed F1 fan will know when the teams are releasing their 2023 liveries. Sauber Alfa Romeo is due to be releasing the car on the 7th of February, as stated in their Twitter bio. What is interesting about this is where it will be shown, Kick.com. Kick.com is connected to Stake.com via owner Edward Craven, who happens to be an investor in the steaming platform.
Kick.com was developed following the change in Twitch.TV’s change in their gambling policy, banning content being produced on Stake.com from being streamed. This would potentially explain why the most popular category on the fledgling streaming platform is “Slots and Casino”. And by a staggering number too, S&C has, currently 7,986 active viewers, in comparison to the next most viewed category, “Music” at 520 viewers. Showing that, at the moment at least, the main reason Kick exists, is to push gambling content, previously seen on Twitch. This becomes a problem when linked to F1, considering the younger demographic coming to F1, and the legality around the promotion of gambling to them. Views can be summed up on the topic by YouTube veteran Ludwig, in his video “This new streaming platform may be a scam“.
This is not the only controversy that Stake.com has found itself embroiled in. Following the announcement that they would be the shirt sponsor of Everton FC, a petition was launched, showing that they wanted nothing to do with the gambling site. As per Inside World Football, Everton season ticket holder Ben Melvin started the petition, following his history with gambling. It is estimated that between 20,000 and 30,000 people signed the petition, showing significant opposition to Stake.com. Fans in football being against betting is nothing new, but the common denomiator in both stories, is Stake.com.
What does the future hold?
Crypto-related sponsors in F1 have had an atrocious time in the last year. The sudden and dramatic collapse of Mercedes sponsor FTX in late 2022, demonstrated the fragility of the crypto landscape. Ferrari has also dropped their crypto sponsor Velas, as documented by InCrypto. Velas was announced as a sponsor for the Tifosi in late 2021 on a multi-year deal worth $30M, to bring “Digital collectables and unique experiences for fans”. Of course, these are very similar promises to Stake.com.
Then comes into question the moral and ethical questions. The fastest growing demographic in F1 is 12-17-year-olds, with over a 49% increase from the year before. Having sponsors such as Stake.com in the sport openly advertises gambling to these vulnerable children, in the vast bracket of that age range. To put it into a more startling context, Max wouldn’t have been able to use the service at the age he made his F1 debut.
F1 does little to hide where its money comes from. This goes for the teams and the sport itself, and to many, this will be another example of that. In a sport that needs to change quickly, it is making little attempt to do so.