Formula E champions DS Techeetah have struck a £1m sponsorship deal with social investment platform eToro that could see the team not receive a penny.
Instead of receiving a flat fee, DS Techeetah will have the seven-figure sum placed in their eToro account for them to invest on the stock market.
If their portfolio grows in value, the team – which has won the last three Formula E championships – stands to bank any profit. If their stocks slump, eToro absorbs the cost but DS Techeetah won’t be paid anything.
“We always want to be at the forefront of innovation, which is one of the key values of Formula E and DS Techeetah,” said the team’s chief commercial officer Keith Smout.
“We have seen the benefits of investing in the financial markets and we’re excited about this partnership, as we aim to help demystify investing to our fans throughout the season.”
DS Techeetah say they hope to maximise returns by staking some of the £1m on eToro’s leading investors, using the platform’s CopyTrader feature.
The Chinese-owned electric racing team also plan to invest in renewable energy and driverless vehicle portfolios.
“We hope that by structuring our partnership in this unique way, we can raise awareness to more people around the world of the potential to grow their wealth through investing,” said eToro global sponsorship manager Dylan Holman.
“We hope to work with more companies in a similar way in the future.”
The one-year deal between DS Techeetah and eToro is believed to be the first of its kind.
However, eToro also struck innovative commercial agreements with several Premier League clubs in 2018 which they paid for in Bitcoin.
DS Techeetah’s drivers Antonio Felix Da Costa and Jean-Eric Vergne are fifth and 17th after two rounds of the 2021 Formula E season.