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Are you ready to explore the transformative power of athlete sponsorship for your brand? Click here to learn more about how sponsorship can help brands grow and thrive in the exciting world of motorsports.
By Silvia Schweiger| Posted January 31, 2025 | In Formula 1, Formula1
Formula 1 represents one of the most coveted platforms for investors and sponsors globally. Its combination of cutting-edge technology, intense competition and an ever-expanding fan base makes it a unique investment opportunity. In recent years, interest in F1 has grown exponentially, attracting not only motorsports fans but also major brands and institutional investors
Exponential Growth in the Value of Teams
According to recent analysis, the average value of a Formula 1 team has increased by 276 percent since 2019, reaching an average of $1.88 billion. Leading this ranking are Ferrari and Mercedes, with valuations of $3.9 billion and $3.8 billion, respectively. Mercedes, in particular, saw revenues for 2023 around $700 million.
Circus 1 saw significant increases in audience in several key markets. In the United States, for example, there was a 58 percent year-on-year increase, while in France and Italy the increases were 48 percent and 40 percent, respectively. This growth is attributable to a combination of effective marketing strategies, strategic partnerships, and an increased digital media presence.
Large conglomerates such as LVMH have recognized the potential of Formula 1 as a global marketing platform. LVMH, for example, has signed a 10-year agreement with F1, involving brands such as Louis Vuitton, Moët Hennessy, and TAG Heuer. This agreement, estimated at nearly 100 million euros per year, highlights the attractiveness of F1 for luxury brands aiming to reach a global audience.
In addition to luxury brands, Formula 1 is attracting a diverse range of sponsorsincluding consumer brands such as Nestlé, McDonald’s, Lego, and Mattel. This diversification reflects F1’s appeal to a younger and more diverse audience, in part due to the popularity of the Netflix series“Drive to Survive.”
Investing in the world of Formula 1 istherefore a fascinating opportunity for motor enthusiasts and investors seeking diversification. Although direct access is limited, there are several strategies for participating financially in this growing industry.
Formula 1 is owned by Liberty Media Corporation, a U.S. company that acquired control of the championship in 2017 for $8 billion. Liberty Media offers three types of shares related to Formula 1: Series A (FWONA): Each share confers one voting right. Series B (FWONB): Unlisted and held primarily by company insiders. Series C (FWONK): Does not confer voting rights and is the most affordable for retail investors. Investing in FWONK allows you to participate in the growth of Formula 1 without direct involvement in corporate decisions.
Some automakers involved in Formula 1 are listed on the stock exchange, offering an indirect investment opportunity: Ferrari (RACE): Listed on both the Italian Stock Exchange and the New York Stock Exchange, Ferrari has experienced significant growth since 2016, with share value increasing by about 600 percent. The Maranello-based company plans investments of 4.4 billion euros by 2026 to support its development. Aston Martin Lagonda Global Holdings plc: Designs, develops and sells luxury sports cars globally. Has a strategic technology agreement with Mercedes-Benz AG, strengthening its position in the market.
Another way to invest in the world of Formula 1 is through companies that sponsor or supply components to teams. For example, companies such as Brembo and Pirelliare involved in supplying essential components for Formula 1 cars.
For investors with significant capital, acquiring stakes in Formula 1 racing teams is an option. For example, RedBird Capital Partners recently acquired a 24 percent stake in the Alpine Racing stable, along with a coalition of investors, including actor Ryan Reynolds.
Formula 1 offers a dynamic and ever-changing investment landscape. Its ability to attract a global audience, combined with sponsorship opportunities and strategic partnerships, makes it an ideal platform for companies and investors seeking to expand their relevance and associate with a brand synonymous with excellence and innovation.Investing in Formula 1 requires careful evaluation of the various opportunities available. It is essential to conduct thorough research and consider one’s risk profile before embarking on any investment. Formula 1 continues to grow in popularity and value, offering potential attractive returns for informed investors.
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Are you ready to explore the transformative power of athlete sponsorship for your brand? Click here to learn more about how sponsorship can help brands grow and thrive in the exciting world of motorsports.
Associate Director, Executive Marketing and Commercial at RTR Sports Marketing, a London-based sports marketing company specializing in motorsport for over 25 years. Without sports, life is boring
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Read MoreIn an era where it is possible to get anywhere with a click, there is a strong temptation to approach teams and properties directly for sponsorship projects.
By doing so, we are convinced that we are shortening the value chain, saving time and money. However, these DYI methods are anything but risk-free and what initially appears to be a competitive advantage soon turns into a problem that is difficult to resolve. That’s why there are agencies. And this is why you should rely on us for your sponsorships.
When first approaching a sponsorship or sports marketing project, it is difficult to know immediately which stakeholders are correct, what the decision flow is, and what the right timelines are for each process. Sports is a very specialized field of action, and fitting effectively into its paths can take a lot of time and therefore money. We, on the other hand, know referents and spheres of action and know who to talk to, when and how. So you are also more effective.
Sports is an immense passion, and for our heart colors we would be willing to do anything. But business is a different business, and it is important to make the best possible strategic decisions based on independent research, statistics and reliable data. A sports marketing and sports sponsorship agency like RTR has an objective, 360-degree picture of the scenario and can tell you what is really best for you: which sport, which athlete, which team. This is because we possess a great deal of data and information on ratings, segmentation and attitudes. Because the numbers don’t lie. Never.
Activations are the real heart of sports sponsorship. Without them, there remains only a blank sticker on a motorcycle, car or uniform and no contact with the public, no emotional connection, no impact on the bottom line. Then how do you do it? It certainly won’t be the teams or the athletes who will help you leverage sponsorship and enjoy the many marketing rights you have paid for. To bring out the best in a sports marketing project you need an agency that knows how to use sponsorship to engage the fanbase on the Web, to reach out to Shopping Centers, to organize hospitality, to develop B2B and B2C opportunities, and to get “your” athletes in front of millions of potential consumers.
Would you ever go to the dealer who sold you the car and ask if the competitor’s car is better? No, of course. So, how do you expect to get firm measurements of the effectiveness of your sponsorship if you do not rely on someone super partes? At RTR, we have always worked with independent third-party agencies that allow us to know the return on any exposure of your brand on TV and in the media. In addition, we believe in calculating ROI as the ultimate measure of your success-so we can tell you for every penny you spend how much you are making.
We have been involved in sports sponsorship and sports marketing for more than 15 years. We are consultants in the sense that our goal is to maximize your investment, but we are also an agency that manages the project from start to finish. We have been doing this since 1995 with passion and professionalism, following three principles that have become cornerstones of our business: independence, verticality and transparency.
I would like to highlight the fact that one of the qualities of RTR is its great ability to approach the sponsorship scenario strategically, together with its passionate attitude, its amazing enthusiasm for solving problems, and its high level of professionalism.
Gianluca Degliesposti
Executive Director Server&Storage EMEA
Eurosport is truly delighted with its business relationship with Riccardo Tafà, who has become extremely popular, thanks to his detailed knowledge of the sports marketing sector and his highly diligent attitude to work.
Francois Ribeiro
Commercial Director
Passion and Expertise are the features that I have found in RTR since the very beginning. Serious and reliable professionals but also very helpful, nice and open-mind people, willing to listen and compare different ideas. All the values in which RTR believes make this agency a partner, not just a supplier, a partner with whom we have had the opportunity to achieve significant commercial results in term of success and image.
Luca Pacitto
Head of Communication
We have been working with RTR Sports Marketing for over 10 years. The objectives and the programmes of collaboration continue to be renewed and to grow with mutual satisfaction. I believe RTR is a team of great professionals led by Riccardo Tafà, who I consider a manager of exceptional skills and with a great passion for his work.
Lucio Cecchinello
Team Principal
I have known and worked with Riccardo Tafà since 1995 when we collaborated for the first time on a project for the Williams Formula 1 team. Several clients followed. After leaving Williams to work for Gerhard Berger then owner of the Toro Rosso F1 Team, I turned again to Riccardo to seek his help in finding a tool supplier for the team and Riccardo duly obliged with an introduction to USAG, a partnership with Toro Rosso which endured for five years. I recently started a new role as Group Commercial Director for the renowned Andretti Autosport organisation and I find myself working with Riccardo once again on a number of interesting projects. Why has this relationship with Riccardo endured ? He’s smart, knows the commercial side of sport inside out and back to front and he’s honest and trustworthy. Riccardo Tafà is a “doer” not a “talker”: in over 20 years I have never had a dispute either with him or with a company that he has introduced and each partnership introduced by Riccardo has delivered quantifiable ROI to rights holder and sponsor alike. I can think of no better testimonial of Riccardo’s diligence, knowledge, contact base and hard work than that.
Jim Wright
Group Commercial Director
The online platform where you can discover the latest trends, strategies and insights from the exciting world of sports marketing.
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