Category Archives: Sponsorship

Formula One: Turning the Red Bull Racing Aston Martin story on its head

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Amongst the #ToroHondaRenaultMcLarenRosso hype during the Singapore Grand Prix weekend, news of around Aston Martin increasing its involvement in Formula One with Red Bull Racing has started to solidify. Andy Palmer, Aston Martin CEO, when quizzed on the grid by Sky Sports F1’s Martin Brundle confirmed the business is keeping a watching brief on 2021 engine regulations, which should they fall favourably towards independent manufacturers, could lead to increased involvement of the brand. Should this be the case Palmer confirmed Aston Martin may seek to preemptt the regulation change by enhancing their visibility with Red Bull Racing possibly from as early as 2018.

This news comes at a time in which the media are speculating Red Bull’s long-term interest in Formula One may be dwindling, which has lead some observers to suggest a change of ownership of Red Bull Racing under the guise of Aston Martin. Whilst this is entirely possible, there are, in my opinion, a few to many creative leaps being taken for this outcome to be viable.

Firstly, lets address Red Bull or more specifically Dietrich Mateschitz’s diminished interest in Formula One. Red Bull entered F1 to sell a product, this objective is the same today as it was 30 years ago. In 2016 the Red Bull achieved more than $1,000M in media coverage from through Formula One. This far exceeds any investment the brand makes into the sport. With budget caps on the horizon, the business rationale for a marketing focused business to be involved with F1 will only increase. Should a $150M budget cap be achieved, Red Bull Racing can be assured of achieving this investment through existing sponsors, and prize funds. Red Bull stand to benefit from $1000M in free advertising.

2017 saw Aston Martin return to profit for the first time in over a decade. The business has stated ambitions around going public in the coming 5 years and are focused on expanding their automotive range to increase revenues. At this time, and in the mid term they are not a business capable of sustaining any form of Formula One engine development plan. Aston Martin Racing is a completely separate business to the Aston Martin which sponsors Red Bull Racing.

Returning to Dietrich Mateschitz. A serial entrepreneurr and self made billionaire. In recent years, he has seen the likes of McLaren diversify into the production of cars, and Williams create successful businesses in the application of their technology within a commercial environment. He is aware that the technical capability of the Red Bull Racing group is under utilised, something which will only increase under a F1 budget cap.  Projects such as Newey’s America’s Cup Project and the Aston Martin Valkyrie Hypercar project show an evaluation of ways in which the team can direct resources to other projects. Could this lead to an alternative direction for Red Bull Racing?

Rather than Aston Martin becoming title sponsor of Red Bull Racing, with a view to producing a power unit under the 2021 regulations. Could Red Bull be considering buying Aston Martin, supporting them in the acceleration of their automotive expansion plans, facilitating F1 power unit development, through their partnership with AVL, and using the proven brand power of Formula One allow Dietrich Mateschitz to evolve Aston Martin into a genuine competitor to the entire Ferrari Group.

Dietrich Mateschitz acquiring Aston Martin and reshaping his position in Formula One towards a Red Bull owned Aston Martin F1 Team, from a business perspective appears entirely more feasible than a company reporting $16M profit, having committed $550M to new road cars, suddenly investing $20M per annum in title sponsorship then paying to develop  an F1 engine.

All that being said, Red Bull, through offering half stories and snippets of information continue to dominate F1 news despite being unable to challenge for a world championship. The business continues to offer a master class in media manipulation. As in 2014, when F1 news was dominated by stories of Red Bull looking set to quit Formula One, Red Bull have an ability to create their own news to ensure they dominate the F1 headlines between the races.

Finally, despite quotes to the contrary, Red Bull Racing are very well aware that the best chance they have of securing a return to a championship challenging position is with a fully funded manufacturer. Talk of Aston Martin, in my opinion, is nothing more than a negotiating tactic around the terms under which the Volkswagen Group will enter Formula One.

Credit to Sean Bull for the fantastic livery creation supporting this article. 

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Formula One: McLaren set to badge Renault Power Unit – McLaren

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As the F1 world awaits confirmation of the widely expected split between McLaren and Honda, attention has turned to the team name and branding for the 2018 season and beyond. It is fairly certain McLaren will switch to Renault power unit supply for next season in a deal which will see the Woking based team become a customer team for the remainder of the current iteration of Formula One Power Unit regulations.

Through social media, Fans and F1 pundits have been speculating on the likely name under which the McLaren Renault partnership will operate, with the overriding sentiment being that legacy of the respective brands not quite sitting well together. With almost every brand within the Renault-Nissan Alliance being touted as a possible fit for the partnership, from McLaren Infiniti, to McLaren Alpine, McLaren Nismo, and my personal favourite McLaren Dacia, the most logical naming convention appears to have been forgotten.

Zak Brown, Executive Director McLaren Technology Group, has been quoted as suggesting the team will consider producing Power Units under the McLaren brand under the new technical regulations, should costs not prove prohibitive. With this in mind it should be expected that the Renault agreement for 2018 will be delivered under a white label agreement, as already in place with Red Bull Racing who included naming rights to their Renault Power Unit in their partnership which LVMH, which sees the Power Unit branded Tag Heuer.

McLaren as an automotive entity in its own right will likely brand the white label Renault Power Unit as McLaren. Suggesting to the casual F1 follower or fan that the team is already producing its own power unit. Such a move will serve to further enhance the credibility of the McLaren Automotive Group and remove confusion around relationships between the road going cars and track based power unit partnerships.

After three of the worst seasons in the team’s history, it is highly unlikely McLaren will be in a position to sign a title sponsor for the 2018 season, the team must rebuild its reputation with brands and partners. As such when the 2018 team listing is announced expect McLaren to be listed simply as McLaren with no reference to any power unit supplier.

Should, for what ever reason, the Renault Power Unit fail to elevate McLaren from its current plight expect to hear some awkward interviews in which an unbranded power unit is held accountable for challenges facing the team.

The three P’s of Formula One: Points, Penalties and Prizes – Paddock Magazine

The 2017 Italian Grand Prix served to highlight once again that current Formula 1 regulations around grid penalties for exceeding…

Source: The three P’s of Formula 1: Points, Penalties and Prizes – Paddock Magazine

Formula One: Motorsports Mayweather vs. McGregor

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The Formula One circus springs back into life this weekend with the championship heading to Spa for the iconic Belgian Grand Prix. If history is anything to go by we can expect to see Red Bull Racing have made a step forward in performance through the break, and for Lewis Hamilton’s form to kick into high gear.

For the F1 fan during a Grand Prix weekend, it can easy to forget other forms of motorsport exist let alone other forms of sport, but this weekend it will be nigh on impossible to miss the relentless coverage of Mayweather vs McGregor.

Everyone loves a cross over! Mayweather vs McGregor is the sporting world’s ultimate cross over. The undefeated heavyweight boxing champion Floyd Mayweather coming out of retirement to answer the challenge of UFC legend Conner McGregor. Cynics would say it’s all about the money with each fighter set to earn in the region of $200 Million for the night and let’s face it, it is, but who cares?

Give the fans what they want and the world will talk about it. Prepare for every social media record ever set to be broken!  It costs more for a sponsor to have their name on Conor McGregor’s elasticated waist for 1 night than it does to be title sponsor of a leading F1 team for an entire season!

How can any other sport compete? Has there ever been a comparable event in motorsport? Could F1 or any other category put on a similar show?

What the world of boxing and UFC have in Mayweather and McGregor are personalities. Neither are backward in coming forward, both believe they are the best in everything they do and both have a constant need to tell the world. Their respective categories embrace this, encouraging them to build their names, which in effect will build the category. They are showman, they are entertainers. Within Motorsports this level of self-adulation isn’t overtly encouraged, the sport is about the team and is often attached to an automotive manufacturer whose reputation could be tarnished by an extrovert driver. In the coming years, should F1 elect to move away from it’s mandate of acting as a basis for automotive development and focus more on entertainment, the Mayweather and McGregor characters could emerge. Until then, we’re stuck with drivers being forced to apologise for sneezing in a way which could damage the brand they represent.

Motorsports is no stranger to a crossover. This year alone, Fernando Alonso was given the opportunity to try his hand in Indycar and proved to be no slouch, drivers often compete in multiple categories such as Jean Eric Vergne racing in Formula E and the World Endurance Championship this season. But when did a champion of one series last race directly against another champion? The simple answer is the annual Race of Champions event, which can attract a high calibre of driver including the likes of Vettel and 2016 champion Montoya, but given the knock out style of the event do they really get to race against each other? Is it really want the fans want?

Motorsport can do better than the Race of Champions. Liberty Media should take inspiration from Mayweather vs McGregor and go all out.  What would you like to see them do? Who would you like to see compete?

Finally, how many F1 drivers will be getting up at 5AM / staying up until 5AM on Sunday morning to watch the arguably the greatest sporting event of the year, and how many drivers will dare tweet about it?

Formula One: Champagne returns to the F1 podium!

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The eagle eyed F1 fan may have noticed a new name featuring at the Monaco Grand Prix podium, that name, Carbon Champagne. As the name suggests, Carbon Champagne fits perfectly into the world of Formula One, with a unique carbon fibre surround crafted for  the premium champagne.

After Mumm Champagne transitioned motorsport involvement from Formula One to Formula E, a decision covered in detail here, Formula One Management partnered with sparkling wine brand Chandon. As followers of this website and  JWGP on Twitter, drivers and teams referring to Chandon as champagne had been a continual pet peeve of mine. With this in mind I applaud Formula One Management for bringing a true champagne back to the podium celebration.

Entering into partnership with Carbon Champagne represents a curious strategic development from Formula One Management and possibly hints towards an evolving business strategy. Carbon Champagne fits into the super premium drinks segment both in terms of quality and price point. A single bottle of Carbon Champagne costs between 10 and 20 times that of the podium product it replaces. This partnership perhaps reflects Formula One’s ambition to ensure the sport retains it’s status as the pinnacle of motorsport through association with brands unattainable to the typical fan. It is clear the sport is walking a tightrope seeking to broaden the appeal of the sport and grow the audience, whilst maintinaing and perhaps elevating its premium nature.

Typically the relationship between a champagne partner and a sports championship is more expansive than the three bottles drivers receive during podium celebrations. As a minimum, a champagne partner can expect to see all championship hospitality requirements to be purchased through this relationship. Beyond increased brand awareness earned through Formula One association, this sale will provide a clear return on investment for the brand against any sponsorship fee agreed. With Carbon Champagne this relationship could prove challenging due to the super premium price positioning of the product. Put simply, it may be challenging for Carbon Champagne to be made available within Grand Prix hospitality without increasing ticket pricing, a move unlikely to be well received by patrons of such said hospitality.

The Carbon Champagne Formula One partnership is one of the first under Liberty Media Management, however long the partnership lasts, it represents a clear statement of intent from Liberty Media. Decisions around championship partners will be made to build brand equity not dilute it.

Formula One: Sauber Honda Partnership CONFIRMED

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Earlier this morning, the Sauber F1 team confirmed a new partnership with Honda set to commence from 2018.  This Swiss-Japanese partnership will involve extensive strategic and technological realignment and creates a news basis for the team moving forward. Following the change in ownership of the Swiss based team, switching to Honda Power for 2018 demonstrates the team’s desire to return to the front through exploring all opportunities available to them.

Speaking on the new partnership Monisha Kaltenborn, CEO and Team Principal commented

“It is a great honor for the Sauber F1 Team to be able to work together with Honda in the coming seasons. Our realignment is not just visible through the new ownership but also now with our new technological partnership with Honda. We have set another milestone with this new engine era, which we await with huge excitement and of course we are looking for new opportunities. We very much look forward to our partnership with Honda, which sets the course for a successful future – from a strategic as well as from a technological perspective. We thank Honda for making this great partnership happen.”

Katsuhide Moriyama, Chief Officer, Brand and Communication Operations, Honda Motor Co., Ltd:

“In addition to the partnership with McLaren which began in 2015, Honda will begin supplying power units to Sauber as a customer team starting from next year. This will be a new challenge in Honda’s F1 activities. In order to leverage the benefits of supplying to two teams to the maximum extent, we will strengthen the systems and capabilities of both of our two development operations, namely HRD Sakura and the operation in Milton Keynes. We will continue our challenges so that our fans will enjoy seeing a Honda with dominant strength as soon as possible.”

Further details around the new partnership will be made available in due course.

Follow this link to check out the 2017 Sauber F1 Team Merchandise Collection from Errea Sport.

F2, F3, F4: Erreà Sport join Prema

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Italian clothing Manufacturer Erreà Sport continue their rapid growth throughout Motorsport with the announcement of a new partnership with Prema for 2017 and beyond.

Joining the ranks of the Sauber F1 Team, Mahindra Formula E team, & Manor Endurance Racing, this new partnership will see Erreà Sport represented across F1, F2, F3, F4, Formula E, and the World Endurance Championship, with further partnerships in motorsport in development.

Fans of Erreà Sport in motorsport can find the online store for the Sauber F1 Team and Mahindra Formula E team though this link. Highlights of the Prema and Manor Endurance Team collection will be made available in the coming weeks.

The 2017 Prema team wear collection is a result of coming together of minds between the Prema and Erreà Sport design teams. The collection reflects the teams Italian heritage and team history, alongside ensuring functionality for the team in races around the world.

Commenting on the partnership René Rosin, Team Principal, remarked:
“We are proud to partner an excellent Italian company like Erreà for what is expected to be a particularly demanding season. Like in all professional sports, also in racing every single component can make a difference and Errea, to whom we will entrust our personnel, will definitely be a key component of the team”.

Errea Sport Chairman Angelo Gandolfi added:
“We are delighted for this new and prestigious partnership. Prema and Erreà share the same values and represent a dynamic, efficient and determined combination, looking forward to score great results in the upcoming season. We worked hard together with the team in order to provide them with all the support they need to keep pushing the limits forward.”

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To keep up to date on  Prema through the 2017 season in motorsport you can follow them on Twitter here.

Formula One: Could F1 consider cloud seeding to ensure Sunday’s race?

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Friday free practice running for the 2017 Chinese Grand Prix was all but a complete washout. With conditions at the circuit and the neighbouring city, in which the hospital on call for medical emergencies from the race weekend, too poor for helicopters to operate in, the FIA delayed and eventually cancelled most of the days running.

Current weather forecasts suggest conditions will improve for tomorrow, but are likely to return on Sunday. Should forecasts prove to be accurate there is a real possibility that it will not be possible for the race to take place on Sunday as scheduled. With only a one week turnaround between the Chinese and Bahrain Grand Prix it will not be possible to hold the race on Monday or at a later date. As such FOM, the FIA, teams, drivers, and broadcasters are apparently in talks to host the entire race weekend activities tomorrow.

Within Formula One, there is no prescient for a race taking place a day earlier than scheduled, and in reality with the highly complex global broadcast agreements in place, it is highly unlikely that terms for running the race a day early can be agreed. Sponsors, Broadcasters, race attending fans, teams, will all seek compensation. As such at this point in time the most likely outcome, if the poor weather returns, is that fans will be treated to a four hour broadcast of no track action at all on Sunday.

This will significantly damage the reputation of Formula One globally and most specifically in Asia, a market in which the sport is struggling (note the discontinuation of the Malaysian Grand Prix agreement from 2018 announced earlier today). To avoid such an outcome it is time for Formula One Management to get creative? Could they look towards a solution involving Cloud Seeding?

Cloud seeding is a form of weather modification, a way of changing the amount or type of precipitation that falls from clouds, by dispersing substances into the air that serve as cloud condensation or ice nuclei, which alter the microphysical processes within the cloud. The usual intent is to increase precipitation (rain or snow), but hail and fog suppression are also widely practiced in airports. (thank you Wikipedia). The process could be applied in areas away from the circuit and the route to the hospital supporting the race.

It is understood organisers of the Singapore Grand Prix, have long used this technology to ensure a dry race weekend during the rain season for the region.

The process was used during the 2008 Beijing Olympics to ensure a dry Olympics.

No doubt, as the weekend processes, the weather forecast will evolve and fans concerns will evaporate!

Formula One: Ricciardo dreaming of Champagne (Sparkling wine) from the top step

Red Bull Racing’s Daniel Ricciardo heads to his home Grand Prix, the opening race of the 2017 F1 season, in Melbourne with aspirations of a top result. In this race preview for Mobil One’s The Grid, Ricciardo explains the complexities of preparing for the Melbourne Grand Prix and how the team will be looking complete as many laps as possible through free practice to fine tune setup.

Having experienced the Melbourne podium in 2014 (as result which was taken away following a post race sanction), Ricciardo sets out a clear ambition to reach the top step in 2017 and “taste the big bottle of champagne” Unfortunately for Daniel, with Mumm Champagne being replaced by Chandon last season, should he reach the top step he’ll have to make do with sparkling wine. That being said I’m sure it’ll still taste sweet, even if it’s from a sweaty shoe!

Formula One: Ferrari & Kaspersky tackle increased cyber security threat in 2017

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Scuderia Ferrari together with longterm cyber security partner Kaspersky head into the 2017 Formula One season more aware than ever of the acute risk cyber attack places on both the team and the broader Ferrari S.p.A group.

Kaspersky Lab experts uncover more than 300,000 unique pieces of malware every day, new threats are evolving all the time. As cyber criminals develop tools individually tailored to each victim, indicators of compromise are no longer enough on their own to help organizations detect attacks. In this environment, knowing where you’re vulnerable is as important as your ability to detect and prevent cyber-attacks. Rounding this self-awareness out with the latest threat intelligence to help anticipate what’s around the next chicane is vital for an organization with Ferrari’s profile and reputation.

“To be able to foresee potential cyber-attacks and overall analysis of the global threat landscape is required. Kaspersky threat intelligence services proactively provide us with information we wouldn’t otherwise have.”
Alessandro Sala, Cybersecurity, IT quality and Compliance, Ferrari S.p.A
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From the Maranello factory to the Formula 1 circuit, more than 5,000 Ferrari endpoints and systems globally are secured by the world’s IT Security specialists, Kaspersky Lab.
As both companies’ technological vision and innovation extend to connected cars,Internet of Things and a constantly evolving web presence, Kaspersky Lab is deepening its technology partnership with Ferrari, delivering protection that extends beyond devices to the data itself, 24 hours a day, seven days a week.
“Though we work in very different industries, we’re united by the same core business values: technological leadership and a passion for innovation and getting forever better at what we do,”
Kaspersky Lab founder and CEO, Eugene Kaspersky

Over a Grand Prix weekend teams collect more than 60gb of data from each car hitting the track. Through the use of Kaspersky technology, Scuderia Ferrari can take to the track safe in the knowledge their data is secure.  Formula One regualtions dictate any changes made to a vehicle whilst on track must be carried out by the driver (under instruction if required) this does not mean the team could not make the changes themselves, rather they are not allowed. Without the assistance of Kaspersky Ferrari could be vulnerable to an attack to these systems within a race environment. The consequences of which could put the safety of drivers and competitors at risk.

Similar to the bespoke fuel and lubricant required to operate a Formula One car, cyber security is rapidly becoming a fundamental requirement to compete. Having established their relationship with Kaspersky in 2012, as Scuderia Ferrari are better equipped that most to deal with this new threat.
For more information on Kaspersky and their customer facing product range click here.
You can follow Kaspersky motorsport and their activities in F1, Gp2, and endurance racing through there twitter feed here and on their dedicated website here