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Sponsorship-driven F1 team funding is failing: a comparison 2003 to 2013


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#1 Nustang70

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Posted 12 April 2013 - 09:03

I made a similar point in another thread, but I feel this merits its own discussion (plus, it took me a while to compile this data).

The problem, as I see it, is that it is becoming increasingly difficult for Formula One to sustain a full field of entries with sponsorship. Sponsored drivers are becoming a last resort in teams' desperation to attract sponsors. Major corporations seem more interested in directly investing or purchasing teams (Red Bull, Mallya, Sahara, Marussia, Air Asia/Caterham), which, eventually, may will leave us with a sport full of teams named after consumer goods--a prospect, I for one, do not wish to happen. The sport needs to be managed in a way that teams should be able to compete solely on TV revenues, with any sponsorship merely a bonus.

Only Red Bull, Mclaren, Ferrari and Mercedes have title sponsors that aren't also owners/part owners in the team. Between the other teams, only a small number of their medium-high sponsors aren't a result of driver-associations (e.g. Maldonado & PDVSA, van der Garde & MacGregor) or owner brands (e.g. Red Bull, Kingfisher). This is remarkably worse off than teams were a decade ago. A couple of points are worth raising in this comparison. First, the global economic crisis of a few years ago was certainly felt in the sport, so fewer sponsorship deals could, in part, be explained by this. Second, the banning of tobacco companies stripped a traditional source of sponsorship from the field.

The following is a comparison of mid-high level direct team sponsorship between 2003 and 2013. I'm basing this on prominent placement--wings, sidepods, engine cover, or along the side of the nose behind or in front of the wheel--if a sponsor only spares a space, like the front wing, with another sponsor, I didn't count it. Obviously, my methodology isn't perfect.

2003 (note that several teams had paid engine deals this year as well)

Ferrari
Marlboro (title sponsor)
Vodofone
Shell
Williams
HP
Allianz
Castrol
Petrobras
Mclaren
West (title sponsor)
Mobil
Siemens
Renault
Mild Seven (title sponsor)
Hanjin
Elf
Sauber
Petronas (title sponsor)
Red Bull
Credit Suisse
MTC
Jordan
Benson & Hedges
Damovo
Liqui Moly
Jaguar
HSBC
AT&T
Dupont
BAR
Intercond
Minardi
Superfund
Muermans
Trust (Trust & Muermans are Dutch, but I couldn't find anything indicating they were there solely there because of Verstappen--Muermans, at the least, remained the following season after his departure)
Toyota
Panasonic (title sponsor)
Travelex
Wella


2013

Red Bull
Infiniti (title sponsor)
Rauch
Geox
Total
Ferrari
Santander (title sponsor; subject to debate due to Alonso's concurrent signing)
Shell
Marlboro (not sure if they still sponsor Ferrari, but they have that obviously Marlboro-inspired team logo)
Kaspersky
Mclaren
Vodofone (title sponsor)
Mobil
Lucozade
Lotus
Unilever (Rexona, Clear)
Burn
Mercedes
Petronas (title sponsor)
Blackberry
Sauber
none
Force India
none
Toro Rosso
IPIC (Nova, Falcon Private Bank)
Cepsa (as I recall, Alguersuari claimed he was misled by Franz Tost into helping sign the Spanish firm before they elected not to renew his contract--not sure how accurate that is)
Williams
Experian
Randstad
Caterham
GE
EADS (Airbus--this and GE are debatable due to Fernandez signing major non-F1 deals with the companies beforehand)
Marussia
QNET


The difference is quite stark. In 2003, each team except BAR (at this point, still funded quite well by the owners and Honda) had a few significant sponsors. In 2013, the bottom half of the grid have a very paltry showing.

Edited by Nustang70, 13 April 2013 - 00:12.


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#2 Head

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Posted 12 April 2013 - 09:09

very good point , the sponsors in f1 are certainly being missed big time , there are cars that is just empty and other cars that have their owner's name and owner's brand thrown all over the car

#3 lustigson

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Posted 12 April 2013 - 09:11

It's an interesting list, but not very useful since there are no numbers to go with all the sponsors. One sponsor bringing in € 50 million is only slightly less valuable — e.g. spreading risks — than three bringing in a similar amount.

#4 DutchQuicksilver

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Posted 12 April 2013 - 09:18

BAR had Lucky Strike  ;)

#5 Nustang70

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Posted 12 April 2013 - 09:19

It's an interesting list, but not very useful since there are no numbers to go with all the sponsors. One sponsor bringing in € 50 million is only slightly less valuable — e.g. spreading risks — than three bringing in a similar amount.

True, but we can still draw some conclusions from this fact. First, it's generally accepted that sponsor visibility correlates to financial contributions, so we can loosely infer which deals are reasonably significant. Second, the fact that teams are struggling to sign major sponsors is indicative of how bad things have become. Also, I should note that, concerning sponsors that only shared a space on the car in the areas I examined, this situation wasn't all that common--I only left off a handful from each list (eg, Sonax for 2003 Mclaren, Dell for 2013 Caterham).

#6 Nustang70

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Posted 12 April 2013 - 09:21

BAR had Lucky Strike ;)


BAR owned Lucky Strike. It was an internal sponsorship, exactly like Red Bull sponsorship on Red Bull and Toro Rosso cars.

Edited by Nustang70, 12 April 2013 - 09:22.


#7 Gene and Tonic

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Posted 12 April 2013 - 09:22

The starkest difference I think is when looking at the back-markers. Minardi used to have logos plastered all over the car, no matter how small - they always had loads and loads of sponsors. Marussia and Caterham don't, and neither did HRT and neither do Williams or Sauber - they're all reliant on one big investor it seems.

Although lustigson is right, these larger investors may be providing a sound-enough financial footing on their own, and I suppose Caterham have Tony Fernandes backing them so their finances aren't really an issue.

#8 Slackbladder

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Posted 12 April 2013 - 09:24

Just the nature of the world economy at the moment. Money is tight all over.

#9 Nustang70

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Posted 12 April 2013 - 09:31

Just the nature of the world economy at the moment. Money is tight all over.


Yet, most of the teams have a healthy assortment of sponsors on their liveries, but most of these sponsors are tied to a particular driver or invested in the team. I don't think this can be entirely attributed to the global economy.


#10 Slackbladder

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Posted 12 April 2013 - 09:47

Yet, most of the teams have a healthy assortment of sponsors on their liveries, but most of these sponsors are tied to a particular driver or invested in the team. I don't think this can be entirely attributed to the global economy.


What it means is that sponsors are either more choosy (linking up to national drivers etc), or they want more 'say' in the team. What they aren't willing to do is just throw money at the team without some power or greater say.

#11 apexpredator

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Posted 12 April 2013 - 10:11

You left out Total in Lotus.

But I think the nature of the sponsorship today is also a consequence of the economic climate. Companies just don't have the luxury (or freedom) to invest in these huge marketing schemes anymore.

#12 molpid

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Posted 12 April 2013 - 10:13

Force India --> Sahara

#13 sesku

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Posted 12 April 2013 - 10:48

Sauber 2003 still have RedBull sponsorship.

#14 Ross Stonefeld

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Posted 12 April 2013 - 12:48

10 years ago most of the sponsors were tobacco or manufacturer partners. The manufacturer teams were almost fully funded by b2b links rather than 'pure' sponsorship.

And that hasn't changed much. The difference is we no longer have tobacco or as many OEM sponsors.

#15 SpaMaster

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Posted 12 April 2013 - 15:20

Yes, I totally agree. F1 should become more sustainable by thriving only on TV revenues and prize money. Sponsorpship money is a bonus and profit they would put it on the bank, but be never able to spend on cars.

#16 r4mses

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Posted 12 April 2013 - 15:43

Afaik one of the priciest places for a logo is next to the drivers head, like the small "West" and "Hugo Boss" logos here.

Plus: Times and times again I've heard and read that Malboro still puts a huge amout of money into Ferrari - even manages their on-car sponsorships?

#17 Sin

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Posted 12 April 2013 - 15:58

o.O Sauber got Telmex as sponsor if I am not completely wrong,

#18 pingu666

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Posted 12 April 2013 - 16:20

the petronas - merc thing is a business to business thing isnt it?



#19 Ross Stonefeld

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Posted 12 April 2013 - 16:21

Yeah they've replaced Mobil 1 as the official oil of Mercedes-Benz, so you see Petronas on most Mercedes racing cars now.

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#20 BlackCat

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Posted 12 April 2013 - 17:57

so, giving up tobacco money was stupid. what is the news in this?

#21 BoschKurve

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Posted 12 April 2013 - 18:51

so, giving up tobacco money was stupid. what is the news in this?


There wasn't a choice, as that was down to the anti-smoking campaigns gathering a ton of steam, as well as legal issues.

If the teams could, I am certain most of them would be running full tobacco liveries.

I know Mosley and Ecclestone tried to fight the tobacco advertising ban. I miss the tobacco sponsorship greatly as the liveries were far more interesting to look at than what we currently have, and it was a throwback to a less politically correct era. But the world changes, and I suppose it was inevitable it wouldn't be allowed one day.

#22 Nustang70

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Posted 12 April 2013 - 20:03

You left out Total in Lotus.


Total is there because of Grosjean.


#23 Nustang70

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Posted 12 April 2013 - 20:04

o.O Sauber got Telmex as sponsor if I am not completely wrong,


Yeah, but that is because of Perez & Gutierrez.

#24 Nustang70

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Posted 12 April 2013 - 20:05

Sauber 2003 still have RedBull sponsorship.

Oops! Fixed.

#25 Anderis

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Posted 12 April 2013 - 20:12

Total is there because of Grosjean.

It's some kind of speculation. They have been a sponsor of Enstone team for many years already.

#26 BoschKurve

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Posted 12 April 2013 - 20:22

It's some kind of speculation. They have been a sponsor of Enstone team for many years already.


The Total sponsorship is newer.

As long as Renault was involved, it was always Elf even after the merger with Total.

#27 Ross Stonefeld

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Posted 12 April 2013 - 20:30

That's because they're pushing the Total brand more than Elf, but it's still a legacy of Renault Sport.

#28 BoschKurve

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Posted 12 April 2013 - 20:32

That's because they're pushing the Total brand more than Elf, but it's still a legacy of Renault Sport.


I recall it being due to the lack of French drivers in F1 that Elf stopped being used.

#29 Doughnut King

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Posted 12 April 2013 - 20:43

There wasn't a choice, as that was down to the anti-smoking campaigns gathering a ton of steam, as well as legal issues.

If the teams could, I am certain most of them would be running full tobacco liveries.

I know Mosley and Ecclestone tried to fight the tobacco advertising ban. I miss the tobacco sponsorship greatly as the liveries were far more interesting to look at than what we currently have, and it was a throwback to a less politically correct era. But the world changes, and I suppose it was inevitable it wouldn't be allowed one day.


I expect alcohol to go the same way eventually.

#30 Ross Stonefeld

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Posted 12 April 2013 - 20:44

Total is the brand being pushed in motorsport. There's some small Elf stuff in World Series by Renault, but everywhere else it's Total. F1, GP2, World Series, Le Mans, WRC, etc.

#31 mattferg

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Posted 12 April 2013 - 23:42

Error Red Bull has a lot more sponsors than just Infiniti lol.

Rauch
Geox
Casio
Pepe Jeans
AT&T
Siemens
Total

Why are you missing key sponsors? Lol. Use the teams websites to get a proper list if you're going to argue a point please. All of the above sponsors are easily visible on the RB9.

Edited by mattferg, 12 April 2013 - 23:42.


#32 kartinhero

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Posted 13 April 2013 - 00:04

World economy

#33 Nustang70

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Posted 13 April 2013 - 00:10

Error Red Bull has a lot more sponsors than just Infiniti lol.

Rauch
Geox
Casio
Pepe Jeans
AT&T
Siemens
Total

Why are you missing key sponsors? Lol. Use the teams websites to get a proper list if you're going to argue a point please. All of the above sponsors are easily visible on the RB9.


I missed a few of those. I think I was looking at an early photo that was stripped down of most sponsors. More than half of those aren't visible in the spaces I set as criteria though.


#34 Red17

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Posted 13 April 2013 - 00:20

The lack of sponsorship is one of the central problems of the future. But in my opinion it's directly influenced by how much money the operation needs.
I don't think there is any other form of motorsport, (with maybe the exception of the official LMP1 programs) that spends so much money as Formula 1.
Let's face it, decades of open nature in the rules have been upping the bill to ridiculous amounts.
Small teams are spending "pennies". Yeah, show that number to a man on the street and he will likely name it a fortune.
So you get into an endless cycle, more speed needs more engineer, engineers need to be paid, need more funding, need more sponsors, rival catches up, need even more speed, repeat process.
The thing is, teams are still addicted to those days of easy money.

#35 Anderis

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Posted 13 April 2013 - 08:26

The Total sponsorship is newer.

As long as Renault was involved, it was always Elf even after the merger with Total.

Total was already present (to big extent) on Renault's livery in 2009.

#36 BoschKurve

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Posted 13 April 2013 - 13:32

Total was already present (to big extent) on Renault's livery in 2009.


They merged in 2003 so it took another 6 to show up. Point being that Elf was the long time sponsor of Enstone teams rather than Total.

#37 Ross Stonefeld

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Posted 13 April 2013 - 13:35

It's the same company, they changed their branding focus.