Category Archives: Sponsorship

Formula One: Can F1 afford to wait until 2021?

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Barely a day goes by without one of the leading motorsport websites publishing comments around the future plans for F1. From louder engines to racing game inspired car designs, 2021 will amaze and inspire a new generation of fans. All of which sounds great, but it’s 2018. There are 3 seasons of Formula One between now and the promised fantastical future. The landscape of the motorsport industry can and will change dramatically in 3 years. Can Formula One really afford to wait?

2017 saw the introduction of the current set of technical regulations guiding the sport. Whilst cars are visually more impressive than there predecessors with the dimensions of the cars and tyres increasing. An overall increased emphasis on aerodynamics has had a dramatic impact on drivers ability to overtake with the 2017 season seeing less than half the number of overtakes of 2016.  At present, there appears to be no plan to address this issue, with the 2018 regulations seeing no modifications around aerodynamic regulations.

Mindful of a likely closer battle for wins, Mercedes, Ferrari and Red Bull Racing, may have focused the aerodynamic philosophies of their 2018 challengers around an ability to more closely follow a competitor, but without regulation changes a significant increase in overtaking from 2017 to 2018 is unlikely.

All this comes at a time the commercial positions of Formula One are coming under threat. Longstanding partners involved in the championship are defecting to the likes of Formula E or other sports, and at this time, prospects for new partnerships appear limited. With the Formula One business focusing their attentions towards 2021 why would a partner commit to the championship ahead of the ‘revolution’? The Formula One product from 2018 -2020 may be a difficult product to sell.

It is possible, Formula One management are focusing taking a strategy of focusing to the future with the view and expectation of teams demanding an earlier introduction of new regulations. With the Season 5 Formula E car set to make its public debut in the coming weeks, and Indycar looking strong with a new car concept, competition between championships is ever growing. Can Formula One and the teams committed to its success afford to wait another 3 years for change?

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Formula E: Raising the Bar in Motorsport Sponsorship

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Season Four of the FIA Formula E World Championship resumes this weekend with the third round in the calendar coming from Marrakesh. As the first major motorsport event of 2018, now is a good time to reflect on the success of the championship and explore how Formula E’s approach to partners is changing the face of motorsport sponsorship.

As motorsport goes, Formula E is a Championship still very much in its infancy. When considering the achievements of the championship, this fact is something many forget. Over three seasons Formula E has established a global audience in excess of 200M, this compared to Formula One which using the same metrics reported an audience of 350M across 2017 is hugely impressive. On average, Formula E appeals to a younger audience, with a gender split whilst still leaning towards males is far more balanced than any other form of motorsport. The city-centre, single day format has proven successful, as have affordable ticketing policies. Attendance of an ePrix is successfully positioned as a family event.

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The level of manufacturer support Formula E has achieved since its inception has exceeded all expectations. Championship management targeted 4-5 OEMs to have committed to the championship by season five. With DS, Jaguar, NIO, Mahindra, Audi, Renault (set to run as Nissan from next season) Venturi, BMW, Mercedes, and Porsche now involved, the championship finds itself in the position of having the most manufacturer-backed entries in any form of motorsport. Of course championship management acknowledge manufacturer support is cyclical, but Formula E represents a unique platform for manufacturers to showcase Electric Vehicle technology in a cost-controlled environment. The appeal of the championship goes beyond racing, Formula E gives manufacturers access to an audience demographic they would otherwise struggle to connect with. There is every reason to expect the current level of manufacturer support to be sustained.

Season Five will see the most significant change in the championship to date. In a bid to keep team costs under control, Formula E limits the development of components on a season by season basis and in some cases mandates the use of standard equipment across all teams. Through season five, two of the most significant standard elements will be upgraded, in the battery and the car itself. Whilst both elements will remain standard items, significant improvements in battery technology will remove the requirement for a mid-race car change, alongside delivering a sizable increase in performance. With the new car, Formula E promises to amaze fans with a futuristic design incorporating FIA mandated cockpit safety structures in a fully integrated design concept. The new look championship promises to leave other forms of motorsport looking old-fashioned by comparison.

Following the lead of Mumm Champagne, long time partners of Formula One including Allianz and Hugo Boss continue to transition towards Formula E. This shift is due in part to the way in which Formula E engages with its audience and has positioned itself at the forefront of the conversation around Electric Vehicles. The technology demonstrated within Formula E is perceived to be of greater relevance to the future of the automotive industry and as a consequence, has positioned itself as a sport which a broad and diverse audience can engage with. Free from shackles of history, the Formula E message evolves with it’s fans. This open and dynamic approach sits well with the marketing teams behind the championships growing list of partners and continues to attract new partners to the sport.

Formula E and its approach to fan engagement has not gone unnoticed.  2017 saw Formula One announce a partnership with premium partner Carbon Champagne. In attempts to build awareness of the F1 – Carbon Champagne partnership, CEO, Alexander Mea has acknowledged taking inspiration from the Formula E podium celebrations. Carbon have already employed ideas such as the use of a DJ to build atmosphere around the podium (as seen at the Mexican Grand Prix), to branding the cool down room and presenting drivers through the crowds to increase visibility. Formula E and its partners have inspired the established brands to up their game to maximize any return on investment.

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Engagement extends far beyond the podium ceremony, for race attending fans the eVillage supporting every ePrix provides an area for championship partners to engage with fans, delivering both tangible sales and the ability to build brand awareness. Formula E encourage championship partners and local partners to embrace the eVillage and its captive audience of fans. Beyond the eVillage is the The EMOTION Club.  Formula E’s unique take on the VIP paddock life experience. In contrast to other forms of motorsport where team and championship guests are hosted in separate motorhomes or paddock buildings, Formula E, through the EMOTION Club, have created a shared environment in which all guests and partners are together, facilitating an environment which truly lends itself to the development of new business to business partnerships and allows guests to maximize their experience from both an entertainment and commercial perspective. Formula E has always been keen to ensure all brands and partners involved with the championship have every opportunity to maximize their position in the sport. Success in this open approach is evidenced by the fact that to date, all partners joining the championship have chosen to renew and extend their commitments.

Another great asset of Formula E is its relationship with the media.  Of course the sport has it doubters and critics, but media reporting from within the championship hold Formula E in high regard. Motorsport will be criticized irrespective of any decisions taken, but Formula E seeks to balance this by engaging with the media, explaining the strategy of the championship, ensuring a feeling of inclusion and community. Many journalists have been a part of the championship from the very beginning, they feel part of the championship and their value in its continued growth does not go unnoticed by championship management.

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With the imminent announcement of title sponsorship of the entire Formula E Championship, Formula E management can be proud of what has been achieved. Formula E continues to outperform rival motorsport championships in terms of its reach and engagement. Founding partners including Qualcomm, DHL, Michelin, and Mumm Champagne continue to be rewarded for their willingness to embrace a new form of motorsport. As the championship grows, so will their return on investment.

Formula One: JB Launches Jenson Button TV!

Following in the footsteps of fellow former World Champion Nico Rosberg, Jenson Button has launched his own YouTube channel to chronicle his adventures post F1.

VLOG001, released earlier today, features Button and his crew heading to Sepang to test the Super GT Honda NSX he plans to race through 2018. Adopting a style similar to that of Jon Olsson, Button offers almost behind the scenes like insights into his life alongside glamour shots coupled with a chilled soundtrack.

Similar to the only professional racing driver I’ve had the pleasure to share a car with, early on in the Vlog, Button demonstrates the true level of respect racing drivers have for the handbrake of rental cars…

Vlogging, similar to blogging, or podcasting allows the host to present themselves to an audience in a way in which they feel most comfortable. Free from broadcast restrictions, hosts control what they share and when they share it. That being said, this being Button’s first post, the extent to which he posts content through his channel and the amount of his daily life he chooses to share remains to be seen.

Similar to Nico Rosberg’s YouTube Channel, Button’s motive behind this level of engagement isn’t overtly clear. Fan’s will appreciate the access and the feeling of inclusion, beyond this, as Jon Olsson will attest, developing a following in the Vlogging space can prove extremely lucrative and facilitate the fulfilment of the most unthinkable personal goals. (check out Jon Olsson’s Youtube Channel here for more)

Subscribe to Jenson Button TV here

Enjoy Mr Snow!

Formula E: Julias Bär confirmed as Title Partner for the Zürich ePrix

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Julius Bär – leading Swiss private banking group and Global Partner of the FIA Formula E Championship – has today been announced as the title sponsor for the historic first running of the Julius Bär Zürich E-Prix.

The electric street racing series will be bringing circuit racing back to Switzerland for the first time in over 60 years, with the inaugural Julius Bär Zürich E-Prix set to take place on June 10.

With its headquarters in Zürich, Julius Bär has been Formula E’s global partner since the inception of the championship in 2014. Julius Bär has been instrumental in bringing Formula E to the streets of Zürich for the very first time and have acquired the naming rights for the inaugural race.

Gian A. Rossi, Head Switzerland at Julius Bär, emphasises the Bank’s pioneering spirit and its commitment to future technologies as the main reason to support Formula E and the Zürich E-Prix: “Formula E is an investment in our society’s future. The racing series serves as a test bed for innovations advancing the future of mobility and ‘smart cities’. We firmly believe that in a country whose flair for innovation is the secret of its success, the racing series will generate great interest and underscore the image of Switzerland as a hotspot for technology. The decision to pick Zürich to stage the race is the right one – after all, it is a flagship for research and innovation as home to ETH, one of the two Swiss Federal Institutes of Technology, as well as being the country’s largest city.”

Racing had previously been forbidden in Switzerland for decades, with the last event taking place at Bremgarten circuit in 1954. However, a law change in 2015 lifted restrictions on fully-electric racing and paved the way for Formula E to bring electrifying wheel-to-wheel action to the streets of Zürich.

Alejandro Agag, Founder & CEO of Formula E, said: “It’s only fitting that at such an historic moment in the championship and for motorsport in general, one of the main protagonists in bringing racing back to Switzerland for the first time in over 60 years, has put its name to the first-ever Julius Baer Zürich E-Prix. Since even before the first race in 2014, our global partner has believed in the concept of electric street racing and has been instrumental in making the championship what it is today. Formula E makes history at every race, but on June 10, Formula E becomes the first category to bring back professional circuit racing to Switzerland – none of this would have been possible without Julius Baer and the vision of electric racing.”

Sebastien Buemi, Renault e.dams driver and proud Swiss, with his country’s flag emblazoned on his helmet, has stood on the top step of the podium 12 times before in Formula E, and will be looking to not only secure the Julius Bär pole position award, but put his name in the history books as the first professional circuit racer to win at home in over six decades.

“I cannot wait to be able to race on home soil – it’s something no other professional circuit racer has said in 63 years! The atmosphere of racing on the streets, coupled with having your home crowd cheering you on is something I’ve never experienced before and this will be one of my dreams achieved – I can’t thank everyone enough who has played their part in bringing racing back to Switzerland; from the city, the fans who have supported this, Julius Bär and Formula E,” the 2015/16 champion said.

Head to the Zürich ePrix website for all the latest on the event and to order your tickets, by clicking here

Formula One: Confirmed – Renault will not feature in McLaren team name designation

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McLaren has confirmed that Renault will not be referenced in the official team name designation for the 2018 season. Whilst Renault branding will feature within the team environment and livery as would be expected in a customer power unit relationship, the team will not be referred to as McLaren Renault.

As speculated on this site in September 2017, such a move will facilitate a single focus for the McLaren brand and enable consistent naming conventions should the team implement its own Power Unit solution under future F1 regulations.  Unlike fellow Renault customers, Red Bull Racing, McLaren have not taken the route of rebadging their Power Unit.

The Renault Power Unit supplied to Red Bull Racing has been badged TAG Heuer since 2016, in an agreement which saw the LVMH owned brand end a long-standing partnership with McLaren switching to the Milton Keynes based team.

The naming convention surrounding Toro Rosso’s relationship with power unit partner Honda is yet to be confirmed.

Formula One: Scuderia Ferrari IQOS

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Following yesterday’s article in which the prospect of Scuderia Ferrari carrying IQOS branding was explored, designer Sean Bull got in touch to share his vision of a possible 2018 livery for the Scuderia.

Philip Morris International, as title partners of Ferrari, will likely seek to include IQOS naming rights within a partnership announcement in order to maximise coverage and brand exposure. As such the team may well be referred to as Scuderia Ferrari IQOS, following the previous Scuderia Ferrari Marlboro naming convention.

Sean‘s concept livery harks back to Ferrari livery style of the early 90’s using black as a secondary colour throughout the design. The use of black on the front and rear wing would likely appeal to the team’s designers, with the fine detail of aero intricacies being more difficult to make out in rival team ‘spy shots’.

It remains to be seen if Philip Morris International will seek to promote its e-cigarette business through Ferrari in 2018, based on fan response to the rumour, the move would be positively received.

Click here to check out Sean on Twitter for more motorsport livery work.

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Formula One: Missing Sponsors

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As the clock struck midnight on December 31st 2017, many sponsorship relationships throughout the F1 Grid reached their conclusion. In the coming weeks and months, numerous new agreements will be announced at both a team and championship level as attention focuses on the season ahead. For myself as a lifelong fan of the business of Formula One, now aspiring to develop a career in this side of the sport, this period between commercial contract expiry and new contract announcements can be fascinating.

No team will encourage media to make a story out of the end of a partnership, so don’t expect any press releases confirming a departure, instead head to the partner’s section of the website of the team you follow and see if you can spot the brands or names suddenly missing from the list.

A well-publicised partnership expiration is that of the relationship between Santander and Scuderia Ferrari.  A partnership many believe will be replaced by the promotion of long-term team partners Phillip Morris introducing e-cigarettes to Formula One with the brand IQOS. If true, e-cigarettes could represent a high-value sector of sponsors for F1 moving forward, assuming advertising challenges can be overcome, and OEM’s including Mercedes and Renault are comfortable with the association.

Intriguingly, whilst Santander has been removed from the Scuderia Ferrari Website, it remains on the McLaren (no longer McLaren Honda) website. Santander, whilst no longer a brand represented on the McLaren livery have been partnered with the Woking based team since Alonso first joined the team in 2007.

Can you spot any other team websites with mysteriously missing partners? There are some out there which may surprise…

Formula One: Underestimate me at your peril – Marchionne to F1

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Underestimate me at your peril. The resounding subtext pointed in no uncertain terms towards Chase Carey and Formula One from Sergio Marchionne at the launch of Alfa Romeo’s title partnership relationship with the Sauber F1 Team this weekend. 

The long rumoured return of Alfa Romeo to Formula One with the Sauber F1 Team was finally confirmed earlier this week. The announcement of the return was closely followed by an invitation to the worlds motoring media to attend a press conference in Milan. On the face of it, the objective of this event was to confirm 2018 Sauber F1 Team drivers Charles Leclerc and Marcus Ericsson with Antonio Giovinazzi taking on a 3rd driver role and to unveil the 2018 livery theme. What transpired was a master class in negotiation from Chief Executive Officer of Fiat Chrysler Automobiles (FCA) Sergio Marchionne.

After a period of observing, tinkering, and to some extent grandstanding, the final races of the 2017 Formula One season have seen Liberty Media begin to share their vision for the future of Formula One. Until now, key protagonists set to be impacted by this vision have largely kept their views to themselves or at least limited opinions to isolated sound bites. Sergio Marchionne and FCA, have now firmly stuck their head above the parapet to makes themselves and their views clear for all.

Elaborate team and sponsor launches are something which for many had been consigned to the history books with the vast majority of team unveiling now taking place minutes before pre-season testing on a chilly pitlane in Barcelona. Yet this weekend saw the team finishing plum last in the championship host over 400 media representatives from all over the world at the Alfa Romeo Museum situated just outside of Milano launch a sponsorship less than one week after the end of the season. With media from the US being flown in First Class with 48 hours notice, it would be conceivable to say that the budget of this single event exceeded the marketing and activation budget of the team for the entire season. Sergio Marchionne wanted an audience for his message, and he wanted his audience to leave the event singing his tune.

In addition to the media contingent, Sergio Marchionne and FCA invited newly reappointed FIA president and former Scuderia Ferrari Team Principe Jean Todt to attend and speak at the event, alongside Formula One CEO Chase Carey, with Sauber F1 Team owner Pascal Picci. So with the stage set, Sergio Marchionne opened the event, in Italian, focusing on the great news of Alfa Romeo returning to Formula One. This was followed by Mr Todt waxing lyrical about the passion of the brand and its significance with motorsport. Chase Carey then took to the stage to applaud FCA for bringing Alfa Romeo back to Formula One, he acknowledged their history in the sport and spoke of his enthusiasm for their return. Then the big reveal, driver line up confirmation and an indicative view of the team livery.

What followed was pure mastery. Sergio Marchionne returned to the podium for a few more words. In the space of 10 minutes, he politely panned the Michael Buffer COTA show, make clear FCA & Ferrari did not want to be part of a ‘dumbing down’ of Formula One, asserted the sport should be focused on technology over entertainment, and what could be the knock out blow, “our partnership with Sauber is until 2021, if we don’t like the direction the sport is taking at that point, we will leave and we’ll take them with us”

This rhetoric was delivered not only to a room full of media, but squarely at Chase Carey seated directly below the rostrum at which Sergio Marchionne made his speech.

Following this, team owner Pascal Picci and team principle Frédéric Vasseur returned to the stage for an open Q&A session. I would not like to suggest any questions were ‘planted’ but the position of FCA strength ahead of any negotiations with Formula One over the future of the sport was highlighted at every available opportunity.

Of course, Chase Carey and Liberty Media did not get to where they are today by chance, I have no doubt they have more than a few tricks up their sleeve as they head into negotiations with Formula One teams over the future of the sport. Sergio Marchionne has simply set the tone of future discussions and made it very clear he is more than happy for any discussion to be made in full view of the media and the Formula One fan.

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. 

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.