The Drone Racing League signs a $100 million partnership with cryptocurrency exchange Algorand

<p>The Drone Racing League, based in New York, announced Tuesday that it had signed its most major sponsorship deal to date with cryptocurrency platform Algorand.</p> <p>DRL is a first-person-view racing league in which drone pilots compete for prise money by racing their gadgets around neon-lit courses. According to PitchBook, the company began operations in 2017 and is now valued at $200 million.</p> <p>The terms of the agreement with Algorand were not disclosed, but sources familiar with the matter told CNBC that it is a five-year deal worth $100 million. Since the DRL's inception, Allianz, a German financial services corporation, has held the title rights and will continue to be a league partner. Algorand's deal was handled by Excel Sports Management.</p> <p>DRL president Rachel Jacobson described the agreement with Algorand as "transformative" and the "ideal marriage" in a recent interview with CNBC. She stated that both the cryptocurrency platform and DRL had a “tech-setter” fan base.</p> <p>Jacobson described Generation Z as tech-savvy early adopters "who care as much about an Apple iPhone launch as they do about sports and entertainment." “When examining what is happening in the world of crypto and blockchain, it is critical to ensure that you are addressing the appropriate audience.”</p> <p>Algorand, headquartered in Boston, operates on a blockchain, or distributed ledger, and is traded on cryptocurrency exchanges under the ticker name ALGO. As cryptocurrency continues to evolve in the financial sector, businesses are positioning themselves to attract more digital consumers through the use of sports sponsorships.</p> <p>This year, cryptocurrency companies acquired sports naming rights assets in the National Basketball Association and Major League Baseball, and one firm struck a $100 million contract with Liberty Media's Formula 1 team.</p> <p>Jacobson, a former NBA executive, noted that while sports help newer businesses build brand awareness, crypto firms will still need to educate younger consum