Are you willing to sponsor?
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 Riccardo Tafà| Posted January 28, 2019 | In Formula1, Sport Sponsorship, Sports Marketing
Because of this, it’s difficult to say precisely how much a sports sponsorship campaign might be worth, or how much it might cost a brand. One place to start, though, is by comparing sports that are similar in prestige and audience. Football, F1, MotoGP and tennis all have global audiences, making it easier to compare the minimum entry costs that are needed to allow brands visibility in this space.
Given the expanse of the subject, we’ll limit ourselves to a few examples here – starting with the jersey partnerships seen in the 2017-18 Premier League season (1). Of course, Premier League games pull in a huge audience – but it still might be a surprise to find that the space available on the right sleeve of the top teams costs approximately £100,000 per square centimeter. This should give you a good indication of the type of budget you’ll need if you want to stand out amongst the sponsors of this level of tournement (2).
EAM | MAIN SPONSOR | MAIN SPONSOR VALUE | LENGTH | SLEEVE SPONSOR | SLEEVE SPONSOR VALUE | LENGTH |
Arsenal | Emirates | UK£200 million (US$257.6 million) | signed 2018, expires 2024 | Rwanda Tourist Board | UK£30 million (US$38.6 million) | signed 2018, expires 2021 |
Bournemouth | M88 | UK£8 million (US$10.2 million) | signed 2017, expires 2019 | Mansion | ND | ND |
Brighton | American Express | UK£1.5 million (US$1.9 million) per season | ND | JD | ND | ND |
Burnley | LaBa360 | UK£3 million (US$3.8 million) per season | ND | N/A | ND | ND |
Cardiff | Visit Malaysia | UK£3 million (US$3.8 million) per season | ND | JD | ND | ND |
Chelsea | Yokohama Rubber | UK£200 million (US$257.6 million) | signed 2015, expires 2020 | Hyundai | UK£50 million (US$64.4 million) | signed 2018, expires 2024 |
Crystal Palace | ManBetX | UK£6.5 million (US$8.4 million) per season | ND | Dongqiudi | ND | ND |
Everton | SportPesa | UK£48 million (US$61.8 million) | signed 2017, expires 2022 | Rovio | ND | ND |
Fulham | Dafabet | UK£6 million (US$7.6 million) | signed 2018, expires 2020 | ICM | ND | ND |
Huddersfield | Ope Sports | UK£1.5 million (US$1.9 million) per season | ND | Leisu Sports | ND | ND |
Leicester | King Power | UK£4 million (US$5.1 million) per season | ND | Bia Saigon | ND | expires 2019 |
Manchester City | Etihad Airways | UK£400 million (US$652 million) | signed 2011, expires 2021 | Nexen Tire | UK£10 million (US$12.9 million) per season | ND |
Manchester United | General Motors | UK£371 million (US$559 million) | signed 2012, expires 2021 | Kohler | UK£20 million | ND |
Newcastle United | Fun88 | UK£19.5 million (US$25.1 million) | signed 2017, expires 2020 | N/A | ND | ND |
Southampton | Virgin Media | UK£16 million (US$20.5 million) | signed 2016, expires 2019 | Virgin Media | UK£2.4 million (US$3 million) | signed 2017, expires 2019 |
Tottenham | AIA | UK£175 million (US$225.4 million) | renewal signed in 2017, expires 2022 | N/A | ND | ND |
Watford | FxPro | UK£9 million (US$11.5 million) | signed 2017, expires 2020 | MoPlay | ND | ND |
West Ham | Betway | UK£40 million (US$52 million) | extension signed 2016, expires 2020 | Bassett & Gold | ND | ND |
Wolverhampton | W88 | UK£15 million (US$19.2 million) | signed 2018, expires 2022 | CoinDeal | ND | ND |
Of course, there are lower profile options that you could take, which would command less of a budget – billboards and LEDs on the sidelines, for example.
Qatar Airways’ kit sponsor campaign with AS Roma is worth €11 million per season. The team also works with Hyundai (€8.5 million) and Betway (€5 million) (3).
AC Milan’s main sponsor, Emirates, brings in around €17 million. Other sponsors include Banco BPM, Toyo Tires, Snai, Tim, Mediaset Premium, Diesel, Frecciarossa, Gi Group, Nivea and StarCasino. According to Sports Sponsorship Insider, these agreements are worth between €1 and €2 million each.
Added to this are nine official partners, each with an investment of between €500,000 and €1 million: Alpenwater, AON, Fujitsu, GKFX, Nilox, Konami, Radio 105, Ricoh and DXC Technology (4).
If you don’t want to appear on jerseys but do want to take advantage of all the marketing rights of an official partner, €100,000 is enough to access packages with second-tier teams in Serie A. This time of sports sponsorship package can offer site border advertising.
The investment that it takes to sponsor an F1 team is hugely varied – title sponsors may be worth hundreds of millions of euro, whilst low-end partners are often around €100,000 (5).
An example is Scuderia Ferrari’s sponsors and partners: almost €40 million has been invested by the tobacco giant Philip Morris, whilst champagne producer Veuve Clicquot has spent €100,000 on its sports sponsorship campaign.
Brands | Sponsors | Partners |
Philip Morris | 37,5 M | |
Alfa Romeo | 92,0 M | 8,0 M |
Santander | 30,0 M | 0,5 M |
Shell | 24,0 M | 3,0 M |
Kaspersky | 2,0 M | 20 M |
UPS | 20,0 M | 3,0 M |
Weichai | 2,0 M | |
Hublot | 2,0 M | |
Mahle | 1,0 M | |
OMR | 1,0 M | |
Singha | 1,5 M | 0,5 M |
Rayban | 2,0 M | |
Puma | 1,0 M | 0,5 M |
Infor | 1,0 M | |
Swisse | 1,0 M | |
Experis | 1,0 M | |
SKF | 2,5 M | |
Magneti Marelli | 2,5 M | |
NGK | 0,5 M | |
Brembo | 0,5 M | |
Riedel | 0,3 M | |
Iveco | 0,3 M | |
Bell | 0,3 M | |
Oz | 0,3 M | |
Honeywell | 2,5 M | |
Technogym | 0,2 M | |
Veuve Clicquot | 0,1 M | |
Pirelli | 2,5 M | |
Prize Money | 204,5 M | |
TOTAL | 216 M | 257,5 M |
GRAND TOTAL | 473,5 M |
Obviously, important costs are associated with impressive marketing benefits and extraordinary image returns. See here https://www.theedgemarkets.com/article/petronas-continues-reap-benefits-f1-participation the benefits obtained by Petronas from their £40 million per year title sponsorship of the Mercedes F1 team, for example.
£1 million is the minimum necessary, according to the Mail https://www.dailymail.co.uk/sport/formulaone/article-5518147/Lewis-Hamilton-wear-112m-worth-sponsors-new-F1-race-suit.html to place your brand on the tracksuit of the F1 2018 world champion Lewis Hamilton.
As with other sports, sponsoring MotoGP has varying costs. The market is diversified, and there are small operations, starting from around €50,000, as well as title sponsorships that reach €15 million. There are no pre-established packages or prices, but here’s a rough guide to what you can buy with various amounts:
This is the entry level for some grid teams, buying marketing and communication rights that allow you to tell a great story effectively. Visibility, however, will be minimal – it may be expressed in small logos on transport, or on the backdrop to races.
With this amount, you can start to have your own brand on the bikes or overalls of riders in satellite teams or unofficial houses. Your logo is likely to also be present on their transport, website, and other communication tools. This visibility, although not very extensive, allows you some return in terms of image, and to build brand awareness on digital and traditional media.
This figure allows for large spaces on the satellite and unofficial teams, and the opportunity to start approaching first-rate, official teams for less prominent spaces. The possibilities of activation are multiplied, hospitality and B2B become relevant, and the chance to use the Showbike and have a pilot presence at company events is starting to appear in contracts. Although not in large numbers, very clear initial strategic decisions are required.
This level of investment allows you to deal with any team in the world, and will offer good visibility – you will have standout spaces on second-tier unofficial teams, and interesting positions on teams that constantly go to points. The strategy that you want to pursue is fundamental here, so it’s important to be aware that a larger space doesn’t always lead to greater marketing results. At this level, there is a wealth of communication rights, team support and B2B potential that you can utilize.
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.
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.
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.
Managing Director for RTR Sports, Riccardo graduated in law at the University of Bologna. He began his career in London in PR, then started working in two and four-wheelers. A brief move to Monaco followed before returning to Italy. There he founded RTR, first a consulting firm and then a sports marketing company which, eventually, he moved back to London.
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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
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