Each and every single sport has sponsorships. Some, more than others. Sports that are not in the favoured category might struggle to find top sponsors from major brands. However, the popular categories such as Formula 1 has brands fighting to be their title sponsor.
But exactly how much it costs to sponsor a formula 1 car? This might vary from brand to brand and different deals. However, a significant title sponsor such as Rolex has to pay an annual fee of about $45 million. Another major brand, Heineken, is expected to pay about $50 million.
With sponsorship deals, it is mostly a bidding game. Marketing teams from both parts will often start to get in contact with each other. Especially when the brand is directly connected to the sport, which isn’t different for the F1.
A title sponsor is basically the highest level in the sponsorship pyramid. The brand owning this place will see their logo on the team’s car, for example. Another significant advantage is having its logo in every single piece of printed material from the team, website, products. Basically, you are able to merge your brand with the team’s image.
Title sponsors will, in return, increase brand value and reach a target audience. Or simply, increasing visibility for the brand.
Meanwhile, for the F1 itself, notable names such as Emirates, DHL, Heineken, Pirelli, and Rolex remain as official partners.
To be able to sponsor each one of these types, the price might change depending on the agreement. However, it is estimated that if you are a brand and want to have any sponsorship deal with the F1 teams at least, you will need to prepare about $3.3 million to have a chance. In 2018, Petronas, considered to be one of the most significant title sponsorships at the time, had a $75 million annual deal with Mercedes.
The Ferrari team was, however, the most sponsored team. Their budget was nothing less than $176.6 million. That, of course, to be able to have all of the perks that a title sponsor gets. Meanwhile, smaller sponsorship deals will revolve around “smaller” deals.
Not everything is flowers with the F1 now having trouble in finding sponsors due to a decrease in TV ratings and overall interest. In January of this year, Wihuri Group was one of the long-time sponsors to leave the F1 behind, saying goodbye to Mercedes.
Despite experience some instability in the last couple of years, the F1 probably won’t run out of a title sponsor anytime soon. Just as one leaves, new brands are ready to take on a new deal with the best teams, because as long as they keep winning, the million-dollar contracts are nothing but worth it.