A Look at the Sponsors Behind Formula 1 Teams

There are multiple sources out there that have the numbers ranging from $180 million to close to $300 million per year. But that was before the pandemic. A recent agreement between Formula 1 teams has resulted into a cost-cutting package that would help the teams ride out the coronavirus pandemic.

According to BBC Sport, for 2021 the budget will be $145 million, for 2022 the budget will decrease to $140 million and for the period of 2023-2025 the budget will be capped at $135 million.

A huge percentage of the money required to run the F1 team comes from sponsorships that cover parts of the car. That includes the top of the nose, the wing mirror, the side of the tub, the rear wing, the rear-wing endplates, the airbox and the sidepods.

The prime logo positions are usually worth around £15 million per year, while the smaller logos that can be found on the lower edge of the car are still worth £1 million per annum. According to data from Formula Money, close to 39% of the team revenue are generated from sponsorships.

With that in mind, we have decided to look at some of the newest and most innovative sponsors that are now featured across F1 cars.

One of the most recent partnerships is that of McLaren Racing and Entain Plc. The latter is a sports betting and entertainment company that will see two of its Party brands, namely PartyPoker and PartyCasino, be featured as team partners.

The latter will appear on the halos of the McLaren cars and the helmet of Daniel Ricciardo. A spokesperson for Bingofind.com, a website that reviews such betting sites said: “The Entain brands, that range from poker to casino and from online bingo to betting, will be able to leverage the safe driving, the thrill of watching a F1 race and the cutting-edge technology used to operate these cars into a way of promoting safer and responsible gambling, as well as providing world-class entertainment. We believe this will be a win-win situation for both companies.”

Another multi-year partnership was announced a few months ago that will see Tezos, one of the world’s leading and energy-efficient blockchain networks, become the Official Blockchain Partner of Rd Bull Racing.

The energy-efficient approach, adapted by Tezos, that allows them to operate with minimal energy consumption and an insignificant carbon footprint, is one of the main reasons why Red Bull Racing decided to partner with them. The F1 team will seek to use their technology to offer Grand Prix fans a unique experience by launching digital collectible NFTs (non-fungible token) exclusively on the Tezos blockchain. The Tezos logo will be visible on the car and on the driver helmets.

Fantom, one of the most scalable blockchain platforms that uses green energy to power their network, has signed a partnership with Scuderia Alpha Tauri that will last throughout the current F1 season. Pierre Gasly, the French driver who happens to be just 25 years old and is the old-time top point scorer for Alpha Tauri, will act as the brand ambassador.

Furthermore, his car and helmet will display the Fantom logo. Once again, the eco-friendly approach adapted by Fantom was one of the reasons why the F1 team decided to partner with them as they strive for the sustainability and energy efficiency initiatives that are much needed to the F1 sport.