AvaTrade Changes F1 Strategy: Inks New Sponsorship Deal with Max Verstappen’s Team

Friday, 06/12/2024 | 11:05 GMT by Arnab Shome

The broker entered into a multi-year sponsorship deal with Oracle Red Bull Racing.

Its branding will first feature in the next Abu Dhabi Grand Prix.

Max Verstappen during 2020 pre-season testing at Barcelona; Photo: Wikimedia Commons

AvaTrade, a provider of retail contracts for differences (CFDs) trading services, has switched teams for its Formula One sponsorship. The broker announced today (Friday) that it has signed a new multi-year deal with Oracle Red Bull Racing.

Until recently, AvaTrade sponsored the Aston Martin Aramco Cognizant Formula One Team. However, Oracle Red Bull Racing is a more popular team, as its driver, Max Verstappen, is the clear winner of this year’s Drivers’ Championship. The team also stands third in the Constructors’ Championship.

Covering Many Branding Areas

Under the terms of the new deal, AvaTrade’s branding will appear on the racing team’s RB20 car for the final round of the 2024 season at the upcoming Abu Dhabi Grand Prix.

AvaTrade’s branding will also feature on the racing team’s kit, driver suits, and RB21 car for the 2025 racing season. Additionally, the broker will gain further branding exposure in key markets across the Middle East, Central America, and South America.

Ori Matarasso, CMO at AvaTrade; Photo: LinkedIn

The CFDs broker will also promote its brand through the racing team’s in-house podcast and will separately become a partner of the Red Bull Racing Pepe Jeans Academy Programme.

“There will be untold opportunities for brand awareness, especially given the way our two brands are perfectly aligned in their goals and methods,” said Ori Matarasso, Chief Marketing Officer of AvaTrade.

A Multi-Million Dollar Deal

The financial terms of the sponsorship deal have not been disclosed.

According to an earlier Finance Magnates report, the entry cost for F1 sponsorship starts at about $500,000, excluding the top three or four teams. Based on this, AvaTrade’s latest deal is estimated to be worth millions of dollars.

Football and racing have always been preferred marketing channels for CFD brokers. Several other brokers also sponsor top football and racing teams.

AvaTrade has promoted its brand with several other significant and minor sponsorships over the years. In 2021, it even signed Olympic gold medalist athlete Usain Bolt as its brand ambassador.

Oracle Red Bull Racing also boasts a massive social media presence, with 13.1 million Instagram followers, 11 million Facebook followers, and 1.97 million subscribers on its YouTube channel.