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In The Pit Lane: F1 bucking sponsorship trends?
6 April, 2021
In the COVID-19 world sports sponsorship has taken a pounding with a 23% contraction in the European sponsorship market.
New research from the European Sponsorship Association and Nielsen Sport found the total value of Europe’s sponsorship market shrunk from a record €30.69 billion in 2019 to €23.63 billion in 2020 – its lowest point since 2010.
Analysis of the figures indicates the sports sector fared better with a fall of 9%.
Formula 1 has been bucking the trend with some major deals recently struck and is emerging in good shape all things considered.
Sponsorship is old hat with the new buzz words such as commercial partners taking centre stage.
15 March, 2021
With the updated launch of F1 TV in 85 counties for the 2021 season recently announced the bidding war for Formula 1 content begins to take shape.
Liberty Media’s long-term strategy is F1 TV which it hopes will provide a cash cow and justify its investment in F1.
Liberty became involved in F1 not because it was passionate about motor racing but because it could envisage unlocking the potential broadcast revenues.
At least six of the existing contracts are due to expire by the end of the 2022 season and crucially F1’s deals with Sky TV end in 2024.
As reported by RaceFans.net Sky’s hosting fees for the UK amount to a staggering $1.53 billion for 2019-2024. If you add in Sky Germany and Italy at $100m it’s clear to see that with 30% of its TV income at the mercy of Sky, there needs to be a plan B.
19 January, 2021
Formula 1’s troubles in Brazil continued with the announcement that the new deal to host the Brazilian race at the Interlagos circuit had been according to Brazilian newspaper
Folha de S. Paulo suspended by a judge.
The deal in question was not Liberty Media’s contract with the new promoter MC Brazil Motorsport but the contract between the city of Sao Paulo and MC Brazil.
According to judge Emilio Migliano Neto: “The facts reveal that, without a doubt, the principles of advertising and transparency are being explicitly violated.
“For this reason, there is a need to suspend the execution of the contract in question.”
24 February, 2021
As Red Bull announces the formation of Red Bull Powertrains limited is all well in the Red Bull camp?
Well on the engine front Helmut Marko summed it up when he told reporters in a video call, “the establishment of Red Bull Powertrains Limited is a bold move by Red Bull but it is one we have made after careful and detailed consideration.”
Christian Horner added, “Red Bull were taking a long-term view because the investment in facilities was significant.”
Red Bull has committed substantial funds to the project which was sanctioned by the ultimate owners of the team – the Red Bull drinks company.