Ferrari terminated its Formula One sponsorship agreement with Zug-based blockchain company Velas on Thursday, issuing a one-paragraph statement that mentioned neither the reason nor the financial terms. The Scuderia confirmed only that "the partnership has ended" and thanked Velas for its collaboration. The company's branding disappeared from the SF-24 chassis effective immediately.
Velas joined Ferrari as a technical partner in November 2021 during the height of the crypto sponsorship boom, paying an estimated $8 million to $10 million annually for placement on the car's engine cover and digital rights. The deal was structured as a multi-year agreement through 2025, meaning Ferrari is walking away from at least $16 million in committed revenue. Velas, founded by Ukrainian entrepreneur Alex Alexandrov, develops blockchain infrastructure for decentralized applications and had positioned the Ferrari tie-up as validation for enterprise adoption. The company's VLX token traded at $0.019 as of Thursday morning, down 97% from its January 2022 peak of $0.62.
The termination follows a pattern across Formula One's crypto inventory. McLaren ended its $100 million OKX deal early in 2023 after the exchange cut staff by 30%. Red Bull downgraded Bybit from title sponsor to technical partner in late 2023, though the team declined to confirm whether the annual fee dropped from the reported $50 million. Aston Martin allowed Crypto.com's contract to expire without renewal in December 2023, redirecting the $20 million slot to Aramco's expanded partnership. Alpine still carries Binance logos, but three team employees said the exchange has been late on quarterly payments twice in the past year.
What separates Ferrari's move is the lack of replacement inventory. Most mid-season terminations are accompanied by a new partner announcement within 48 hours—the logistics of removing decals and updating digital assets take coordination, and teams use the PR window to double-announce. Ferrari's silence suggests the decision was reactive, not planned. One kit marketing executive at a rival team noted that Maranello typically locks sponsors into 90-day notice periods and requires documentation for early exits. The absence of detail points to either a contractual breach by Velas or a mutual agreement to avoid public dispute. Either scenario implies Ferrari is willing to race with blank real estate rather than defend the relationship.
The timing matters for Ferrari's 2025 kit reset. The team is expected to unveil Lewis Hamilton in Rosso Corsa at an February event in Maranello, and sponsors typically pay premium rates to appear in launch materials. Velas's departure opens prime engine-cover space valued at $12 million to $15 million annually for a blue-chip replacement. Three luxury brands and two energy companies have been in conversation with Ferrari's commercial team since December, according to a person familiar with the discussions. One Middle Eastern sovereign wealth fund has asked about title rights, though Ferrari has historically resisted selling the naming slot. The team generated $532 million in sponsorship revenue in 2023, second only to Red Bull's $587 million, and operates with 87% of its commercial inventory filled.
Ferrari's statement thanked Velas for "the collaboration and the professionalism shown" but did not address whether the company would pursue payment for the remaining contract term. Velas has not issued a public response. The team races in Bahrain on March 2, 2025, giving Ferrari's commercial operation six weeks to either sign a replacement or explain the gap to board members in Amsterdam.