How much does F1 sponsorship cost?
In many articles of this blog we have attempted to answer the question “how much does sponsorship cost…“? Or “How much to sponsor a F1 team?” These are key questions when we face a sponsorship project in a company, and it is one of the first questions that is asked to sport marketing agencies such as ours.
Today we want to deal with the cost of the sponsorships in the Formula 1 environment. The Formula 1 championship has always been one of most interesting activities for those who study sports marketing and it is also a common case study in the sponsorship world. In fact, it is from Formula 1 that the concept of modern sport sponsorship developed, and it is here that we can still find the most surprising advancements of the discipline. That’s why there is always curiosity about the F1 sponsorship cost and the budget invested by Formula 1 sponsors.
Such as MotoGP, also F1 is a sport with planetary visibility, and it has the extraordinary (and very rare) characteristic of being a mobile communication platform: every 7 or 15 days the circus goes to a different country, bringing the possibility of engagement on site, hospitality opportunities etc.
The common belief is that the pinnacle of racing is among the most expensive sports to invest in.
It’s totally worth it, though. Formula 1 represents the top-tier of motorsport, with a global TV audience of 1,922M during the year (Brazil, Germany, Italy, UK, Netherlands being the top viewing markets) according to Nielsen. Overall, Europe is the first market for TV audiences (66,7%), followed by Central and South America (22,1%), Asia Pacific (5,1%), North America (3,4%) and Africa and Middle East (2,8%). The average F1 viewer is 38 yo, 62% men and 38% women with an average of 0,44 kids per household. It’s a younger, more diverse audience if compared with other major series like the Premier League (42 yo, 67% male) and the Champions League (41 yo, 70% male). Social media are also a valuable channel, with the F1 organization alone amounting to +31M followers across all the platforms. Teams as Mercedes, Ferrari and Red Bull can add their own impressive fanbases (21M, 14M, 18M followers each).
Many people imagine Ferrari, Mercedes, and McLaren not only as teams, but as symbols of speed, performance, excellence and technology. The truth is that F1 sponsorship deals have a wide range and can go from the hundreds of millions invested by Red Bull to the €500k for back-of-the-grid sponsorship packages available to minor F1 sponsors.
With the help of the Business Book we try to give a more detailed answer, showing the big picture of the sponsors and partners of Formula 1. Find below a detailed list of the 2022 Formula 1 sponsors divided by team.
How much does it cost to sponsor a F1 team?
These are some of the most common questions we got every day: how much does it cost to sponsor a F1 team? How much to sponsor a F1 car? How much do sponsors pay F1 teams? The following tables take into consideration the brands and companies that sponsor a Formula 1 car or team, and not the other opportunities, like sponsoring the whole Formula 1 Championship, or a circuit or a single driver. Sponsoring the whole championship, rather than a team or driver, is a completely different ball game, both on the money front and on the marketing rights front: trackside visibility, activation opportunities and fan-zone presence are just some of the benefits of being an Official Formula 1 sponsors among the likes of Heineken, Aramco, DHL and many more. If you’re looking for that sort of opportunity, we are looking at +€5M upwards per season.
As mentioned, it goes without saying that to answer the question “how much does f1 sponsorship cost” we should first define the property we are discussing and the benefits we are targeting. Because, at the end of the day, a F1 Sponsorship cost is only related to the marketing goals and needs of the sponsor.
If we’re looking at ballpark figures, sponsorship deals in F1 start at €500k per year, but no visibility on the car/drivers is included.
Branding on cars and various materials start to appear at €1M approx, but again this depends on the Team we’re looking at and the sector we’re talking (technology, crypto and finance being very crowded ones in the series and therefore more expensive). Highly impactful sponsorships, with good visibility and a full array of benefits might kick off at €3-5M with main sponsorship and title sponsorship hitting tens of millions of euros per year. Tier one deals might reach the €20-50M range, as is the case with title sponsorships for top teams like Red Bull and Mercedes.
Just to provide some examples of top Formula 1 sponsorship costs, the Cognizant – Aston Martin deal is rumored to be worth around $35M per year, not far from the $42M per year of the Petronas-Mercedes partnership. Always according to Sportspro media, the Oracle – Red Bull Racing sponsorship is in the $300M realm for 5 years, while the freshly-signed Bybit deal sits in the $50M per year tier.
From a purely economic perspective then, sponsoring a team, a driver, a race or a series are highly different, but it must be noted that there are further distinctions and that not everything is cut and dried. Sure, generally speaking sponsorship the whole F1 championship will cost you more than, say, sponsoring a driver, but that might not be the case if the driver is Lewis Hamilton and you are becoming a regional F1 sponsor for a very specific and niche industry.
Again, it’s hard to say just how much does Formula 1 sponsorship cost. As usual, it depends on the marketing benefits, on the brands’ objectives and activation plans, on the target market and, finally, on the performance of the team. What’s more important, though, is how much value brands and companies are getting from these F1 sponsorship costs. And if we take a look at the list below, there’s plenty of reasons to believe the ROIs are pretty high…
Formula 1 sponsor list 2022
Alfa Romeo F1 sponsors & partners
Title partner: PKN Orlen
Other partners: Adler, Acer, Accelleron, AMX, Camozzi, Code Zero, Delsey, DRF Bets, Singha, Additive Industries, Ferrari Trento, Floki, Globeair, Hyland, Iveco, Marelli, Mitsubishi Electric, Modere, Pirelli, Puma, Rebellion, Sebelt, Save the Children, Socios, Walter Meier, Web Eyewear, Zadara, ZCG
Alpine F1 Team sponsors & partners
Title partner: BWT
Other partners: Castrol, British Petroleum, RCI Bank and Services, Mapfre, Renault E-Tech, Microsoft, Mandiant, Binance, Dupont, Plug Power, Delphi Technologies, Data.ai, Bell and Ross, Kappa, Sprinklr, Boeing, Genii, Eurodatacar, Perkin Elmer, Shamir, Siemens, Yahoo, 3D Systems, AlpineStars, Alpine Eyewear, Elysium, GCaps, Hexis, KX, K-Way, Linde, Matrix, Roland, Trak Racer, Volume Graphics
Alpha Tauri F1 Team sponsors & partners
Title partner: Alpha Tauri
Aston Martin F1 Team sponsors & partners
Other partners: Peroni 0.0, Crypto.com, JCB, NetApp, Sentinel One, Juniper Networks, EPOS, Girard-Perregaux, Socios, Pirelli, Bombardier, TikTok, Oakley, Ogio, Hackett London, IFS, Altair, Ebb, STL, Pelmar, Voip Unlimited, AlpineStars, Schuberth
Scuderia Ferrari F1 sponsors & partners
Partners: Shell, Santander, Velas, Snapdragon, Ray-Ban, Amazon Web Services, Richard Mille, Ceva Logistics, Estrella Galicia, Palantir, OMR, Puma, Kaspersky, RadioBook, VistaJet, Giorgio Armani, Mahle, Pirelli, SKF, NGK Spark Plugs, Brembo, Manpower Group, Techno Gym, Iveco, Bell Helmets, Riedel, Garrett, Sabelt, Qualcomm Technologies.
HAAS F1 Team sponsors & partners
McLaren Racing F1 Team sponsors & partners
Partners: British American Tobacco, Dell Technologies, Dark Trace, Arrow, Tezos, Webex, Unilever, Splunk, Stanley Black and Decker, Alteryx Analytics, SmartSheet, Data Robot, Gulf, GoPuff, Coca-Cola, CNBC, FxPro, Party Casino, Hilton, Medallia, Castore, Richard Mille, Easy Post, Free Fire, Immersive Labs, Klipsch, Tumi, Deloitte, Sikkens, Mind, Sparco, Logitech, SunGod, FAI Aviation Group, Ashurst, Pirelli, Mazak, Stratasys, Kaust, TechnoGym, Hookit, Merchants, AlienWare, Veloce Esports, New Era
Mercedes AMG F1 Team sponsors & partners
Title partner: Petronas
Other partners: Ineos, UBS, TeamViewer, Crowd Strike, FTX, Hewlett Packard, IWC Schaffhausen, Marriott Bonoy, AMD, Monster Energy, Pure Storage, Tommy Hilfiger, TIBCO, Puma, Police Eyewear, OZ Racing, Endless, Axalta, Belstaff, Pirelli
Red Bull Racing F1 Team sponsors & partners
Title partner: Oracle
Other partners: Puma, Tag Heuer, Telcel, Mobil1, Tezos, Bybit, Honda, Claro, Rauch, Citrix, Poly, Armor All, Cash App, Arctic Wolf, Hewlett Packard, Inter.mx, AT&T, Siemens, PokerStars, Therabody, Pirelli, AlphaTauri, DMG Mori, Hexagon, PWR, Ansys, Gold Standard, Sabelt, Ocean Bottle, Walmart
Williams Racing F1 Team sponsors & partners
Partners: Sofina, Lavazza, Duracell, Acronis, Dorilton Ventures, Versa, Honibe, Financial Times, Symantec, Bremont, Pirelli, Umbro, Zeiss, Crew Clothing Company, PPG, OMP, KX, Nexa 3D, DTex, B&R, Mei, Life Fitness, That’s It, Sia, Thales.
How to sponsor Formula 1
As mentioned above, opportunities in the circus are aplenty. From smaller, €500k deals to the tens of millions, Formula 1 sponsorships are tailor made around any brands’ needs, mission, vision and purpose.
This incredible array of possibilities represents both a threat and an opportunity, of course. While bespoke F1 sponsorship packages are sure to meet the needs of any marketing project, newcomers or even experienced companies might get lost in such a diverse scenario. Where do you start from? How do you know if there’s a better chance or better deal with another team you didn’t know of? What kind of marketing rights should you want in your contract? How to liaise gracefully and efficiently with such a high-paced, complex sport?
Since 1995, at RTR Sports we provide consultancy to brands and firms wishing to enjoy the success and the glamour of the Formula 1 (and motorsport, in general) world. So, if you’re thinking of a Formula 1 sponsorship, we might be the best starting point for you and your marketing team. Hit the button below, or write at firstname.lastname@example.org