Formula One is one of the world’s wealthiest sports leagues and costs each team an average of USD3.3 million each year to take part. Much of this money comes in the form of sponsorship, in return for the various F1 Grand Prix acting as backdrops for blockbuster sponsorship announcements. There are also 13 partners in the sport, including global giants such as beer brand Heineken, which pays USD50 million in fees each year and Rolex which pays about USD45 million annually, and for this they can use the F1 logo in their advertising campaigns, title sponsorship of races and banners around the track throughout the season.

2020 New sponsors

At the start of 2020, Formula 1 received its first ever sponsorship deal involving a gambling company in a groundbreaking contract as the official betting partner of F1 Asia. Whilst F1 is taking on new territories, it is also opening up to new sites that are increasingly popular with the general public such as can be found on topratedonlinecasinosites.com. The deal is significant as it runs for four years through to 2024 and in return for the significant investment, will receive huge exposure from the motorsport world.

There is always room for new sponsors in F1 to allow for additional growth in the sport. The new Grand Prix in Vietnam gets to host a major race for the first time along a hybrid track which combines street racing with a classic Grand Prix surface. The circuit is also returning to the Netherlands for the first time since 1985 and with the Chinese Grand Prix due to come back on board, there will be 22 races on the F1 calendar, with the suggestion that there is space for one more.

Funding challenges

Brands look to justify the expense of sponsorship when TV audiences for F1 are falling and social media can distribute brand messaging for far less investment. At the start of 2020, it was being reported that the Carlos Sainz and McLaren backer Estrella Galicia had “great concern” about the impact of the shutdown. Heikki Hultunen, boss of the digital locking company Iloq, which sponsors Alfa Romeo driver Kimi Raikkonen was also concerned along with several other sponsors. In May, the Williams team announced its split with title sponsor Rokit and also admitted it may be sold.

Biggest F1 sponsors

Petronas

Of the 239 team sponsorship deals in 2018, the biggest was made by Malaysian oil giant Petronas, with an estimated USD75 million title sponsorship of Mercedes each year. They also backed the Malaysian Grand Prix financially, and their banner is regularly in view trackside.

Mission Winnow / Philip Morris International

The name of Ferrari’s sponsor on their cars is Mission Winnow which is promoting the positive effects of innovation and technology. This is really Philip Morris International (PMI) financing the partnership to the turn of USD50 million each year, but as a tobacco brand with advertising of this nature banned in many locations, PMI has had to act within the law.

Shell

Shell also supports the Ferrari team, in a pact that joined the brands together in 1924. Shell makes use of trackside advertising and promotion to maximise exposure. Ferrari has the highest sponsorship budget at USD176.6 million.

Santander

Santander sponsored Fernando Alonso, who bought the brand into Formula 1. Alonso represented Ferrari and McLaren, both brands benefiting from the partnership between Santander and Alonso. In the UK, Santander backed British driver Jenson Button, ending sponsorship in 2017.