VeChain Teams Up with UFC for a $100M Strategic Deal

VeChain has announced a strategic partnership deal with the Ultimate Fighting Championship (UFC). The partnership, valued at $100 million, will become the first Layer 1 blockchain partner for the UFC.

Through this multi-year deal, VeChain will benefit from marketing services on several UFC assets. The VeChain brand will be seen across 900 million households and will be readily available to those who want to watch events globally.

VeChain partners with UFC

The VeChain Foundation is a blockchain logistics firm that taps into blockchain technology to streamline the supply chain process. The supply chain is an integral part of every business, and through blockchain, this sector can achieve notable transformation.

The UFC is one of the most-watched sports leagues globally. The championship is the leading promoter and event organizer for Mixed Martial Arts (MMA). The UFC will adopt the marketing assets and brands promoted by VeChain across different sectors, including live events, promotion in in-arena, social media, and other areas.

The strategic deal between VeChain and the UFC is valued at around $100M. The deal will run for a minimum of five years, according to a report by an anonymous source reported by the Sports Business Journal.

The Senior Vice President of Global Partnerships at the UFC, Paul Asencio, said that the revenues garnered by the UFC had increased by 30%. The revenues have increased consistently compared to 2021 following the strategic deal with the UFC.

The partnership between VeChain and UFC will commence immediately. The VeChain assets will start being marketed on Saturday, June 11, during a UFC event held in Singapore.

VeChain is a layer-one ecosystem that focuses on many business areas, such as the supply chain. The blockchain makes the supply chain process easy for all parties involved because it allows them to easily track the movement of goods.

During the first quarter, the partnership triggered notable changes to the VeChain ecosystem. According to a financial report published in May, the VeChain Foundation spent around $4 million during the year's first quarter. During this period, less than $660,000 was directed towards marketing, but it still maintained notable revenues.

According to VeChain, this partnership will be “one of the deepest integrations within premier UFC assets of any sponsor in UFC history.” UFC estimates that the VeChain brand will hit 900 million television households in 175 jurisdictions.

Through this strategic deal, VeChain will be in charge of the official fighter rankings titles of the UFC. The “UFC Rankings Powered by VeChain” title will come alongside a brand presence within the fighting ring.

VeChain will also be promoted within the venue on leading digital displays, and the two companies will work together to generate content for the social media accounts of the UFC and other digital platforms, with the UFC estimating that it will reach 200 million individuals.

Another key development following the partnership is the launch of the “Brand Ambassador Fund.” The fund will provide paid opportunities to UFC athletes participating in marketing services for VeChain.

UFC's partnership with blockchain companies

This is not the first partnership secured by the UFC in the blockchain sector. One of the largest partnerships secured by the UFC in the crypto space is a $175M deal signed with the CryptoCom exchange. Following the deal, CryptoCom became the “Cryptocurrency Platform Partner” for the UFC, with the fighters receiving bonuses in Bitcoin.

CryptoCom also released its first authorized UFC NFT collection in November last year, and the UFC has persisted in releasing more licensed NFTs through Dapper Labs. In March last year, Stake, a crypto-based casino and sports betting platform, became the “First Official Betting Partner for its markets in Asia and Latin America.

To learn more visit our Investing in VeChain guide.